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Experts advising workers to check tax withholdings

For many, once tax time is done, the paperwork gets tucked away for the rest of the year, but is there a benefit to having those documents handy?
Published: Mar. 1, 2022 at 3:11 PM EST
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InvestigateTV - For many, once tax time is done, the paperwork gets tucked away for the rest of the year, but is there a benefit to having those documents handy?

As you prepare to file your taxes, it’s also good to think about how you can plan ahead for next tax season as well. Instead of just thinking about taxes in January, February, and March, Michael Joyce with the financial firm Agili said using your tax return throughout the year is really a treasure trove of information.

He said look at your tax return a couple of times throughout the next year to help you make some financial decisions.

“You want to make sure that you have enough paid in via withholding or estimated tax payments or maybe you have too much paid in, then you can lighten up on that a little bit,” Joyce explained.

In the end, he stressed that you may like getting a refund, but in reality, it’s likely better to just get the correct amount of money you should be receiving in your paycheck, so you can invest it for bigger returns or if you’re living paycheck to paycheck, have that money now.

Yes, that refund at the end of the year is sort of a forced savings for some people, but Joyce said if you get in the habit of saving money yourself, even as little as $25 a month, you’ll put yourself in a better position.