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4 Ways To Minimize Your Tax Refund and Save Money Next Year

The article from MSN Money outlines four strategies to minimize your tax refund and effectively manage your finances for the next year. Firstly, it suggests adjusting your withholdings by filling out a new W-4 form to ensure you're not overpaying taxes throughout the year, which essentially gives the government an interest-free loan. Secondly, it recommends contributing to tax-advantaged retirement accounts like a 401(k) or an IRA, which can reduce your taxable income. Thirdly, the article advises on taking advantage of tax credits and deductions, such as those for education, energy efficiency, or charitable contributions, to lower your tax liability. Lastly, it encourages saving or investing the money that would have gone into a large tax refund, suggesting options like high-yield savings accounts or investment portfolios to grow your money instead of waiting for a refund. By implementing these strategies, individuals can keep more of their earnings throughout the year rather than receiving a lump sum during tax season.

Read the Full GOBankingRates Article at:
[ https://www.msn.com/en-us/money/personalfinance/4-ways-to-minimize-your-tax-refund-and-save-money-next-year/ar-AA1BTMAO ]