Money Minute: How to know if you’re paying too much in taxes

When tax season rolls around, many people excitedly wait for a large income tax return, but that large sum is not really a good thing.

If you pay less in taxes throughout the year, closer to the exact number you owe, you’ll get a smaller refund check -- which also means you’ll have had more money in your pocket each month of the year.

The IRS has a tool that can help you know if the right amount is being withheld from your paycheck.

Learn more in the video report above.

More reading on this

From the IRS:

• Read more about Publication 505, Tax Withholding and Estimated Tax
• Tool: Tax Withholding Estimator
• Why use the Tax Withholding Estimator? Learn more about the tool

From Investopedia:

• Withholding: Definition, tax rules, federal vs. state
• Federal withholding tax vs. state withholding tax: What’s the difference?
• Single withholding vs. married withholding: What’s the difference?
• Withholding tax explained: Types and how it’s calculated

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