The 7 End-of-Year Banking Moves That Can Save You $1,000s on Taxes

Review and Adjust Withholding

The end of the year is an excellent time to review your tax withholding to ensure you're not overpaying or underpaying taxes. Over-withholding means you're giving the government an interest-free loan, while under-withholding could result in penalties. By reviewing your withholding, you can adjust it to better match your actual tax liability. This can be done by submitting a new W-4 form to your employer. Making these adjustments ensures that you're optimizing cash flow and avoiding surprises come tax time, ultimately keeping more money in your pocket throughout the year.