Time to reevaluate your withholding?
Despite all the worrying we do about high taxes—and all the planning and conniving we do to minimize what we owe—the vast majority of us let the government dip deeper into our pockets during the year than we have to.
The evidence? The tens of millions of tax-refund checks the U.S. Treasury mails out each spring are proof that employees routinely have too much withheld from their paychecks. During 2011, the IRS issued refunds to more than 100 million Americans. That means three out of four returns filed for 2011 called for money back. All told, the government sent about $318 billion to taxpayers, with the average refund around $2,900.