Tax Tip of the Week
900 N. Kings Highway, Cherry Hill, New Jersey 08034
856.667.4100 ·
215.563.0276 ·
Fax: 856.667.3652
Don't give Uncle Sam a tax-free loan
For the week of
May 21, 2001
Shortly before the April 16 filing deadline for 2000 tax returns, the IRS had approved
refunds totaling more than $115 billion, up 5% from the prior year. The average refund was over $1,700. While some
taxpayers rely on the IRS to help them save money, these refunds amount to interest-free loans to the IRS.
If you received a large refund for 2000, take the time now to estimate your total tax bill for 2001. If you don't
expect your income and deductions to change much from what you reported last year, consider adjusting your withholding
at work so the amount your employer withholds comes closer to what you will actually owe on your 2001 tax return.
Put the extra money to work for you. For example, that extra $1,700 applied toward a credit card balance with a
21% interest rate could save you over $350 in finance charges in a year. You could also invest the money or simply
have a little extra in your paycheck to help cover your expenses.
Don't miss out on financial opportunities while the IRS holds your money.
For assistance, give us a call.
Click here to view previous tax tips.
"Tax Tips" are published weekly to
provide useful tax information. Return to this site every week for helpful tax-cutting suggestions, tax reminders,
and current tax information.
The information contained in this site is of a general nature and should not be acted upon in your specific situation
without further details and/or professional assistance.
If you would like more information on anything in "Tax Tips," or if you'd like to be on our mailing list
to receive other tax-cutting information from time to time, please contact our office. We're here to help.
