It’s April 23rd and you’ve (hopefully) filed your taxes by now.
Did you get a big, juicy tax return this year? Or get socked with a big, nasty amount to pay the IRS? Either way, if your job requires you complete a W-4 for your employer, it might be possible to reduce that number.
It’s pretty clear why you wouldn’t want to pay so much next year in a big lump sum, but you might be wondering why you would want to reduce your big, juicy tax return. After all, it’s like getting a fat bonus check, right?
Actually, when you have too much taxes withheld from your paycheck, you are giving the government money out of your pocket that they earn interest on... interest which they don’t share with you. If you adjust your withholding, you get more money in your paycheck that you can then save for a nest egg and earn the interest on yourself!
The IRS is so helpful, they have created a Withholding Calculator that you can use online for free. Check it out - get them to help you figure out what your withholding should really be. If you get less back, or pay less in April - you win, either way.
Here’s the Withholding Calculator -Calculator - try it out.
We’re always looking out for your financial health. And, of course, your physical health.