last year I got about 10% of my income as a tax return
You should probably increase your exemptions. Otherwise, you're just giving the government an interest free loan.
I've got my exemptions cranked up as high as they can go. I just have a combination of a moderate salary and a larger family, not much more that I can do.
I assume that you are paying your Income Taxes to the U.S. and receive an annual W2 from your employer for filing your taxes? If so, then you most likely had to fill out a W4 when you were hired. I'm not aware of any limit on allowances on line 5 of the W4. You may want to get a copy of IRS Publication 505 "Tax Withholding and Estimated Tax" and look it over. Then get a copy of your current W4 and a blank W4 from your employer. Taking the following actions on your W4 with each employer may help you use that extra 10% throughout the year rather than lending it to the government for free every year.
- Verify in the "Personal Allowances Worksheet" on your W4 that you have a 1 in line A, line B, and line C
- Verify in the "Personal Allowances Worksheet" on your W4 that the number in line D matches your actual number of dependents
- If you have at least $1,900 in dependent care expenses, verify that you have a 1 in line F of the "Personal Allowances Worksheet" on form W4
- Double check your math on your calculation of the value for line G of the "Personal Allowances Worksheet" on form W4
- If you typically itemize your deductions, make sure you fill out the "Deductions and Adjustments Worksheet" on form W4
- If your wife is also employed, or you work more than one job, be sure to fill out the "Two-Earners/Multiple Jobs Worksheet" on form W4
If all of the above have been done correctly, and you still find that you receive a refund of 10% of your income at the end of the year, consider increasing the number in line 5 on the W4 by 1 or 2.