Posted on February 13, 2008 at 9:25 am 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.

Posted on February 14, 2008 at 2:57 pm 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.

Posted on March 5, 2008 at 12:19 pm 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.

Posted on March 14, 2008 at 1:43 pm 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. 

Posted on March 21, 2008 at 2:52 am 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

Posted on April 15, 2008 at 7:58 am 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.

Posted on June 16, 2008 at 1:19 pm I see my tax refund a bit like a savings account, as well. But this year I learned that it can't always be dependable, so I think I would consider taking more home each week.

Posted on June 19, 2008 at 3:29 pm I have already completed this as well and it does work.  But you do have to be careful, because I ended up owning the IRS $54.00 for my 2007 taxes.  Not a major amount, but to me, the extra in my paycheck helped us get by with expenses.  Nothing is more important than that. jneely989 debtLOGIC

Posted on March 24, 2009 at 7:17 am Its a good way to take home money after saving tax.Thanks for the link.