Unless you're self-employed or work as an independent contractor, you probably got a big federal tax refund last year. That's because you're withholding too much from each paycheck, essentially forcing yourself to scrimp throughout the year in the hopes of getting a big windfall in the future. These simple tips will help you to re-adjust your withholding amounts to reflect more accurately your actual tax burden and keep more of your hard-earned money out of the IRS's hands for the duration of the year.

Arguments For Accurate Withholding

The case for adjusting your withholding amounts to reflect your actual income is straightforward. If you're like most taxpayers, you might relish the hefty refund that follows a year of over-withholding, but handing the IRS thousands of dollars of free money for a period of a year or more hardly seems fair. On the flip side, under-reporting your income may keep more money in your bank account temporarily, but grossly under-withholding or failing to pay your Quarterly Estimated Taxes will come back to bite you. Underpayment penalties are a major source of income for the IRS, after all.

Fixed Withholding Rates

Medicare and Social Security taxes, known collectively as "FICA," take the guesswork out of the withholding game. They're withheld at 1.45 and 6 percent, respectively, although the exact figures fluctuate from year to year.

File a New W-4

Whether you're withholding too much or not enough, the readjustment process begins with a new W-4. To reduce the total amount that the IRS withholds from each paycheck, claim more allowances on your W-4. File as a head of household, for example, and receive a hefty credit, or claim $1,500 or more in child-care deductions per dependent. Most withholding issues stem from errors in allowance calculations, like a missing child allowance or failure to take the child-care deduction.

Use Worksheets

If a portion of your income comes from sources not subject to withholding, like interest and stock dividends, you'll need to record this on your W-4's "Deductions and Adjustments" worksheet. Once the IRS becomes aware of additional sources of income that aren't subject to withholding, they may increase the withholding rate on your "traditional" income. This may sound like a raw deal at first, but it's both less complicated than estimating your tax burden each quarter and less painful than owing hundreds or thousands of dollars when you file your taxes at the end of the year.

Two Earners Filing Jointly

Married couples who file their taxes jointly enjoy a major financial advantage over couples who file separately, especially if they have dependent children. To maximize this advantage, enter all applicable deductions in the name of the higher-earning spouse. One of you may have to swallow your pride, but your collective bottom line will be better off for it.

Determining the right amount of tax to withhold from your paychecks is easier than you might imagine. First, fill out a new W-4 form and be sure to claim all your allowances and deductions accurately. Next, unless you want to pay hefty underpayment penalties, be sure to disclose all sources of income that aren't subject to traditional withholding. Finally, if you're married, file jointly with your spouse and watch the savings roll in.

Tina Goldsmith writes for financing blogs and sites nationwide. She recommends using taxcredits.net as a resource for information on Tax Credits 2013.