by nate on Thursday, January 21st, 2010 | Business, News

Our heartbeat is normally raised during the tax seasons. Some are expecting it because they would get a refund for a family, but some really hate this season since they worry that they would need to pay to the IRS.

This year, the question is different:

Do you like lending money to the IRS? The answer is yes for three-quarters of taxpayers.
Every year, about 75% of us overpay our taxes. By quite a lot. In fact, the average tax refund last year was around $2,400, which amounts to $200 a month lining Uncle Sam’s pockets until he pays it back to you … without interest.

If you hit the refund jackpot last April (or already know that you’re getting a refund this year), then it’s time to give yourself a raise, starting with your next paycheck.

Pad your paycheck with an extra $200 a month
Let’s get to the details so you can start seeing the fruits of today’s Fiscal Fitness tip ASAP.

To complete this task, you’ll need:

• Your most recent pay stub
• Last year’s income tax return
• A fresh Form W-4 from your employer, or download one from the IRS website

The idea here is to increase the number of exemptions you take while avoiding underpaying. To nail the number, use the IRS’ withholding calculator . The Form W-4 Assistant calculator at PaycheckCity can also help you.

How much is each exemption worth? Well, generalizations and taxes are a potentially lethal cocktail, but if you thrive on rules-of-thumb, figure that each exemption equals about $850 in tax.

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Tags: budget, budgeting, extra cash, extra money, finance, fiscal fitness, irs, lending money, motley fool, paycheck, resolutions, saving, spending, tax refund, Taxes, two-hundred-dollars extra cash, w-4, withholding