WASHINGTON – Taxpayers who’d prefer fatter paychecks to a fat tax refund can make changes fairly easily.
“You might want to talk to your Human Resources or payroll people,” says Barry Glassman, president of Glassman Wealth.
One of the most common reasons workers receive a tax refund is because they neglect to make payroll deductions correspond with life changes.
Every job begins by filling out a W-9 form that tells employers just how taxes should be taken out of each pay check.
“They’re single, they had little income, they owned no home and so forth. And over the years they never changed it,” says Glassman.
Not making timely changes to deductions can make a big difference in paychecks and how much goes to the Internal Revenue Service. Deductions should be revised whenever people get married, have children, buying a house, or taking out a mortgage.
Whether by accident or design American taxpayers must like generous refunds. The average tax refund so far this tax season is a little more than $3,000, according to CNN.
Some call it the “Uncle Sam Savings Plan.” But some investors consider that poor money management saying it’s the equivalent of giving the government an interest-free loan.
The IRS Tax filing deadline for 2014 is Tuesday, April 15.
Maryland personal income tax returns also are due April 15.
Virginia gives taxpayers more time. Virginia’s income tax return due date is May 1.
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