Comments on: Adjust Your Tax Withholdings For More Take-Home Pay

By: tax preparation service

tax preparation service — Thu, 16 Jun 2011 09:59:54 +0000

I put ours in our savings account. My paycheck direct deposit is set up as a fixed dollar amount into savings per paycheck, and the remainder into savings. The amount I had overwithheld thus, should have gone into savings. (Similarly, if I had underwithheld I would pull the money from savings.) Every now and then I sweep the money accumulated in our savings account, into our investment account. I guess that means my final answer is “investing it.”

By: Richard

Richard — Thu, 12 Nov 2009 01:01:00 +0000

Most people do not understand the tax code and thus get overtaxed. The government then has their money until they can get it back after they do their taxes. These are good explanations for those who get a refund each year. .-= Richard´s last blog ..How Long Does It Take To Get Tax Refund Back =-.

By: Marcus

Marcus — Wed, 21 Oct 2009 16:46:58 +0000

Cool post as for me. It would be great to read a bit more concerning this theme.

By: Happy Thanksgiving!

Happy Thanksgiving! — Thu, 27 Nov 2008 14:30:21 +0000

[...] Adjust Your Tax Withholdings For More Take-Home Pay [...]

By: Fab Five - Day Before Thanksgiving Edition | Frugal Dad

Fab Five - Day Before Thanksgiving Edition | Frugal Dad — Wed, 26 Nov 2008 18:01:10 +0000

[...] Adjust You Tax Witholdings for More Take-Home Pay. A nice reminder as we head into the end of the tax year. One of the fastest ways to increase your take-home pay is to lower the amount of taxes being withheld. If you got a huge refund this year, adjust your witholdings to avoid it this year. Better to owe a small amount at the end of the year than give the government an interest-free loan all year. [...]

By: Jeff

Jeff — Mon, 24 Nov 2008 23:36:32 +0000

@FFB – Absolutely! Why let the government hold onto your money when you can bring it home with you?

@Happy Rock – If people want forced savings, then they should adjust their withholdings and then have money automatically drafted from their account into their savings where it will earn interest.

Thanks for taking the time to comment!

By: The Happy Rock

The Happy Rock — Mon, 24 Nov 2008 22:00:17 +0000

I think most people like to rely on the forced savings, rather then getting their money back upfront. Most people don't seem to trust themselves with an extra $500 or whatever the adjustment would be. I say that I have only about a 10% success rate when trying share this knowledge with people Read The Happy Rock´s latest article - Community In Action - Giveaway Edition

By: FFB

FFB — Mon, 24 Nov 2008 19:36:01 +0000

Its so much better for us to have more money in each pay check rather than say we got a big tax return. The money is mine and I want to be able to use it now! Read FFB´s latest article - Personal Finance Resource Links

By: Jeff

Jeff — Mon, 24 Nov 2008 15:28:58 +0000

@Kevin – I imagine that most people are somewhat afraid of lowering their withholdings because they want to avoid having a big tax bill when they file their return.

However, given the economic downturn, many people will likely be more interested in increasing their take-home pay by adjusting their withholdings. I hope this information helps them with that.

By: Kevin @ The Money Hawk

Kevin @ The Money Hawk — Mon, 24 Nov 2008 14:02:35 +0000

This is definitely a good strategy. I’m tired of people telling me they didn’t pay any taxes last year…that they actually got their money back instead…

Sheesh.

Then there are the ones that understand they paid income taxes but are happy to get that big refund for the overage.

Dumb.