I have been in practice as an Enrolled Agent (Licensed Tax Professional) since 1994. Over the years, I have seen many clients overpay their taxes. By changing the way that you do things in your life, you can put more money in your pocket throughout the year. Now that I have your attention, here are five tax-saving tips that can help anyone:

Adjust Your Withholding

For some reason, everyone wants a tax refund. In fact, some people over-withhold throughout the year in order to get a big refund. As a tax professional, I would rather you owe $1,000.00 than receive a refund of $1,000.00, and here is why:

If you are receiving a refund, you are giving the Government an interest-free loan. It’s true. Give me $1,000.00 today, and a year from now, I will give you that $1,000.00 back. In a year, I would have invested that money, and made a 4% return on my investment. However, you only received your original investment. All that you are required to do is pay 100% of what your tax liability was in the previous year to avoid a penalty. Adjust your withholding accordingly, and invest the difference in your 401(k). If your employer does not offer a 401(k), consider a Roth IRA.