Two tips to take the sting out of paying Uncle Sam next year

For many Americans, even with all the economic stress these days, tax time is a season of joy because it means tax returns will soon start showing up in their checking accounts. Whether the money is going to a vacation, sauna, new car or mortgage payments, these lucky souls are feeling pretty good right now.

I used to be one of those people, eagerly plotting out my tax time purchases like a 10-year-old with a Christmas list. But no longer. This year it is I who owe Uncle Sam a good chunk of money. While I can't do anything to negate this problem for 2008, there are a few simple things to do while taxes are fresh on your mind to take the pain out of taxes in come April 2010

The majority of the money I owe is to the federal government due to my work at WalletPop and the fact that my wife switched jobs last year. These changes in our income meant that our federal withholding was incredibly low. Rather than get hammered by a big bill next April I called up my payroll department and increased my withholding to match what I am owe this year. The best part of doing that right now is that with the recent payroll Make Work Pay tax credit, the difference will be less noticeable.