TAX NEWS - 2010

Check IRS withholding

The Internal Revenue Service (IRS) is reminding taxpayers that summer is a good time to consider a mid-year withholding adjustment and that tax planning now may provide a lower tax bill later.

Generally, three out of four taxpayers get a refund, and the average refund this year is just less than $2,900. To bring the tax paid closer to what's actually owed, taxpayers should consider adjusting their withholding, the IRS stated.

IRS Publication 919, "How do I adjust my tax withholding?," is available or the withholding calculator at IRS website may be used to assist with determining the proper withholding amount for your individual situation.

Wage earners needing to adjust their withholding should complete and submit a new Form W-4 to their employer. Self-employed taxpayers can use the Form 1040-ES worksheet to figure the correct amount of their estimated tax payments.