6. Update Your Withholding or Self-Employment Payments

Did you receive a refund in the past year that seemed quite large, or do you expect to get one this year? If that’s your case, chances are you may have needed to adjust the amount of money you are withholding from your paycheck, as it might be more than necessary. Basically, you’re giving Uncle John an interest-free loan out of your pocket. You can fix this by completing Form W-4 and giving it to your employer.

If you’re self-employed, you should make sure that your quarterly payments weren’t too small or too large last year. If so, make the proper adjustment to fit this year’s requirements. Payments that are too small usually result in penalties from the IRS, while too-large payments reflect money that isn’t earning interest for you.