Adjust Your Taxes, Give yourself a Raise
Do you always get back tax money from the government every year? If so then you are losing valuable money to the government. The average tax return for Americans is going to top $2,500 this year. Do the math and that’s almost $50 per week that you are letting the government borrow for an entire year! Not only are you letting them keep the money all year but you are also losing valuable interest. How many people do you know that would be willing to let you borrow $2,500 without paying back any interest?
With that being said how do you go about adjusting your taxes so that you don’t end up paying back the government when tax time comes around? There is a very valuable calculator found on Kiplinger which can be used to help you calculate the number of deductions you should claim.
To get started with your adjusting all you need to do is fill out a W4 form from the IRS and turn it into your employer. Each allowance basically makes $3,300 of your annual income off-limits for withholding. So if you are in the 25% tax bracket you would basically be getting back $825 over the course of the year or $15.85 per week. You may want to only change your deductions 1 or 2 so that you still get a small refund and not owe money at tax time.
So instead of bursting into your bosses office and demanding a pay raise this new year, why not just change a few numbers on your W4 and don’t stress about losing your job!