Increase Your Take Home Pay

Far too many people have a higher tax withholding from their paychaeck than they need to have. This results in the IRS getting free use of your money for a full year.

Yes, you get a refund after you file but you didn’t get to use YOUR money. If you want to bring home a few more bucks each month, use the withholdings calculator at

http://www.irs.gov

to determine what your withholding amounts should be. Believe it or not, the IRS will tell you the correct amount to withhold. That makes your withholding amount legal in the eyes of the law.

Once you perform this calculation, make the correction with your employer. Use the new found money to get out of debt or start a savings program or increase your savings amount.

Something to think about.

That sounds like great advice. At the moment, my wife and I are both self-employed so we don't currently have deductions like that.

I wonder if there's a similar opportunity to check on that in Canada.

I would rather get money back than pay it in, so the higher deduction doesn't bother me.

I know some folks who would suggest that until you actually owe a payment to them, you could have that money working for you rather than for the company. In my case, it's not a huge issue.

I asked my husband about this before.  He's afraid with the tax laws always changing that, in trying to do this, he'd end up owing at the end of the year beacause of some new law.  Is that a possibility?

Yes that could be a very realy possibility from what I know.  I am pretty sure that with the new law in place you will owe at the end of the year. 

That's our real fear.  We'd just be going along all year, thinking we have things set up so we don't owe them, they don't owe us.  Then taz time comes along and surprise!  We changed the law and now you're a sucker!  I know I can't keep up with all the changes.  It's hard enough to understand whenthey leave things alone.

I'm in Australia - so I wonder if we have laws that let us do the same thing with our taxes. Great advice. I'll have to look up our tax office website and see if I can do something like this

 

Raven

Honestly, I think that getting your file back at the end of the year helps more than it hurts. Even though you lose your money throughout the year it's like you are just putting it into a savings account for yourself for an entire year.