Very simple concept: Don't give the government an interest free loan. Instead let your savings or investments grow faster. The government uses that tax refund you get every year, interest free, until it's time to pay you back. Put it to work for you instead!
My thought here is to get that money sooner and get it saved or invested. This includes putting this money into your IRA or 401K. A refund of just $1200 is an extra $100 a month in your paycheck. If you get that invested right away, it could end making you more money overall.
It may take a little time to do, but adjusting your W-4 correctly is important. You also don't want to pay in at the end of tax season. Our goal here is get $0 back.
Use the link below to use a withholding calculator provided by the IRS.
Please read and follow the instructions provided. In the future I will be making a walk-through video and instructional post on how to use it.
0 comments:
Post a Comment