With new tax brackets, now's the time to lower your withholding.
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Barrels of media ink have been spilled over the 25 millionchecks Uncle Sam mailed out as advance refunds on the 2003 childtax credit. Plenty of attention has been given to other aspects ofthe so-called Jobs and Growth Tax Relief Reconciliation Act of2003, too, including dividend and capital gains cuts and increaseddeductions for business owners. But little notice has been paid tothe one thing that almost all taxpayers can do immediately to takeadvantage of the legislation- the withholding from theirpaychecks to reflect new, lower marginal tax brackets.
The tax bracket changes are relatively small, so the extra moneyin each paycheck won't be enough to overcome fiscal inertia inmany households or to get the nation's financial advisersclamoring about the oversight. Still, if you don't make thechange, you're paying the government too much money and willhave to wait for your tax refund to get it back.
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