Now is a great time of year to head over to the IRS Withholding Calculator and make sure that you’re withholding the right amount of tax in 2007.
Your 2006 return will have told you if you were too high or too low. Optimally you set your deductions so that when tax time comes around next year you owe $0. Also, don’t forget that you might need to pay estimated taxes during 2007 (especially if you have have income that does not automatically take out taxes).