Tax Refunds and Withholding

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The most important thing most people want to know about their tax return is how much tax refund they will get back.

As you use TaxAct, you can see how much you owe or are receiving as a refund as you enter information on your return. As TaxAct helps you find every tax benefit to which you are entitled, that number should look more and more favorable.

No one complains when they get a healthy tax refund.

Nevertheless, the first thing you should do when you get an especially large refund is to make sure it doesn't happen again next year.

Getting a huge refund every year means you're having too much income tax withheld from your paycheck all through the year, or you're paying too much in estimated taxes.

You can make better use of your money by keeping it in your control all year.

If you have high interest credit card debt, you're better off using the money to pay off that debt as soon as possible. If you have an emergency, your money should be someplace where you can access it if you need to.

If you use overwithholding as a kind of forced savings plan, consider other automatic savings plans that give you a better return and let you keep your own money. You can have your employer deduct some of your pay for a retirement plan, or deposit it directly into savings for you. Or you can set up an automatic online plan for investing or transferring to a savings account.

Some people hesitate to lower their income tax withholding because they're afraid they might end up owing money when they file their taxes. They'd rather shortchange themselves all year than possibly end up with a bill at tax time.

You don't have to choose between having way too much withheld or worrying about owing taxes at the end of the year. Using the Form W-4 Withholding section, you can make sure your income tax withholding more closely matches the amount you owe the IRS when you file.


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Upcoming Tax Dates

December 10 — Communications and air transportation taxes under the alternative method.
Deposit the tax included in amounts billed or tickets sold during the first 15 days of November.

December 11 — Employees who work for tips
If you received $20 or more in tips during November, report them to your employer Details

December 14 — Regular method taxes
Deposit the tax for the last 15 days of November.

December 15 — Corporations
Deposit the fourth installment of estimated income tax for 2016 Details

December 15 — Social security, Medicare, and withheld income tax
If the monthly deposit rule applies, deposit the tax for payments in November.

December 15 — Nonpayroll withholding
If the monthly deposit rule applies, deposit the tax for payments in November.

December 25 — Everyone
Federal Holiday (Christmas Day) Details

December 28 — Communications and air transportation taxes under the alternative method
Deposit the tax included in amounts billed or tickets sold during the last 15 days of November.

December 29 — Regular method taxes
Deposit the tax for the first 15 days of December.

View More Tax Dates