End of the Year Tax Withholding Adjustments

Its always a good idea to review your withholdings at the end of the year for two reasons. One, you don’t want a significant underpayment to the IRS, or you may face some penalties. Two, you don’t want a significant overpayment either since this constitutes an interest free loan to the IRS!  It’s okay to owe a little or receive a small refund, however if the difference between owed and paid is significant, a review with your tax preparer and/or accountant should be scheduled.

This Yahoo story on how to Penalty Proof Your Tax Return is a good read.