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Just thinking that if the gubment gives us more of our money this year then you might want to get your deductions altered. I'm not an expert on how this may work but I am an expert on paying each year.:)
So if your one that likes to get money back at the end of the year look into this so you know whats coming next year.
Good advice Don, but I never have figured out why so many people like to let the government use their money every month for over a year, INTEREST FREE, and then think it is so wonderful when the IRS gives them THIER OWN MONEY back after they file thier taxes. Not only that, but then many of them compound the idiocy by paying a tax preparer more money and interest to get an anticipation loan because they don't want the four to six weeks to wait to get thier money from the IRS.
Actually, it is better to arrange your deductions so that you OWE THE IRS AT THE END OF THE YEAR and then you put the differnce in your own savings account and you get the interest. Also, that way, if you should need the money for something, you can get it right away and not have to wait till the end of the year and pay for an anticipation loan.
Either way, you are right, everyone should check thier withholding so it comes out they way they want it.
Grumpy
I try to make it work out where I owe some money at the end of the year.
Here's why:
Two years ago, I had a refund of about $3000.
I altered my deductions right away and immediately saw a $125 increase in my paycheck. Essentially, I was getting next year's refund every two weeks.
Makes more sense to do it that way, IMO.
Talked with our accountant and it looks like the biggest possibility of any problem is the two income households.
I agree that a small payment at the end of the year is your best bet.
[QUOTE=DJD;362036]Talked with our accountant and it looks like the biggest possibility of any problem is the two income households.
I agree that a small payment at the end of the year is your best bet.[/QUOTE]
My wife and I have ours set up so that we barely get any back. I think we are breaking even this year. I like getting the checks every year, however, I like the bigger take-home pay every month.
[QUOTE=Col Forbin;362038]My wife and I have ours set up so that we barely get any back. I think we are breaking even this year. I like getting the checks every year, however, I like the bigger take-home pay every month.[/QUOTE]
I'm gonna try this again, but it seems that everytime I do I have to pay the thieves at the end of the year, lol. Fine line on how you set this up.........
Mark, as I said above, you are better off paying (the thieves) at the end of the year. At least that way you have all of your money in your accounts, not the IRSs. Try to figure out how much youj will owe and save that amount (divided by 12) each month. Or, better yet, save the amount that you would otherwise get in a refund and you will get the interest.
Griumpy
[QUOTE=DJD;362036]Talked with our accountant and it looks like the biggest possibility of any problem is the two income households.
I agree that a small payment at the end of the year is your best bet.[/QUOTE]
Please tell me how much a "small" payment is supposed to be. Is it a check for a 5-figure payment or a few hundred dollars? I filed our income tax last month and the tax bill wasn't for a few hundred dollar I can assure you. Over the years we have made adjustments to our W-4 forms but we never manage to break even.
Tax rebates are like the government cutting a foot off the top off our blanket, sewing it onto the bottom, and telling us the blanket is longer.
[quote=bassin_bug;362360]Please tell me how much a "small" payment is supposed to be. Is it a check for a 5-figure payment or a few hundred dollars? I filed our income tax last month and the tax bill wasn't for a few hundred dollar I can assure you. Over the years we have made adjustments to our W-4 forms but we never manage to break even.
Tax rebates are like the government cutting a foot off the top off our blanket, sewing it onto the bottom, and telling us the blanket is longer.[/quote]
I wish I knew! I have paid thousands and I have paid a few hundred so I'll go with the few hundred.:)
For me it's an annual update with my withholdings since our divorce decree was specifically written that way. Then you add the HUGE Executive bonus and I'm sunk.:p
It hurts no matter what you pay at the end of the year huh?