Reminder: Adjust payroll exemptions!

It is a new tax year and if you overpaid or underpaid taxes last year now is the time to adjust your W-4 and state income tax withholding. In my case I overpaid slightly for both but I got a lot of tax credits this year which you have to file a return to receive.

When deciding whether or not to adjust you have to look at your real tax numbers and ignore credits. Credits come and go and change all of the time so they are not to be relied on. If you got no credits at all would your tax bill be covered?

Once you have the "real" number calculated you can adjust your payroll accordingly so you pay as close to the correct amount as possible. The goal is to get as close to a $0 refund as possible without owing money at tax time.