Wednesday, June 28, 2006

Adjusting your W-4 is awesome!

There's just something about tax paperwork that gets my blood running. Maybe I should have become an accountant. Anyway, a couple weeks ago I used the W-4 withholding calculator and it told me that by the end of the year the federal government will owe me ITS first-born child. I don't really want a large refund, I'd rather have the money now, so I filled out a new W-4 with 3 exemptions instead of 1. Today I checked my online paystub (available 2 days before I get paid at the end of each month) and I am getting a whopping $78 more per month from this!! Yaaaay!

The sad thing is is that that is roughly equivalent to how much more per month I will get when I get my scheduled 3.5% raise in October. Very sad. Hopefully I can bump that percentage up but I kind of doubt it.

Anyway, money! Yaaay!

4 comments:

freedumb said...

Make sure you save that extra dough! Thanks for the post...I need to check my withholdings too...

B&I said...

I too need to change my W4. The over pay amount is significant for me. Thanks for the tip

Mike said...

Hey, it's much better than my deal with taxes last year. I was a contractor, so I paid all my taxes in April and owed the tax man 5 grand

D said...

You are so wise. I can't tell you how many people I try to explain this course of action to and they just don't get it. They just love that big refund.

I tell them give me the difference each paycheck and I will refund it to you at tax time .. with interest and I will still make some money for my trouble. They never go for it - either option.

Congratulations! Save it or pay down debt make it work for you.