028: Stop Overpaying Uncle Sam

028: Stop Overpaying Uncle Sam

I am thinking about taxes today. I know, I know…many don’t like this topic. I had a client last week who told me that they had $8,000 refund. Wow. That is a lot! That also means you’re letting Uncle Sam withhold too much from your paycheck each month. Sure, it’s nice to get a big check every spring, but you’ll have more spending money each month if you adjust your tax withholding that you’re not overpaying the IRS.

File a new W-4 form with your employer to claim more allowances because the more you claim, the less tax is withheld. If you received the average refund of roughly $8,000, you should get an extra $660 in your paycheck each month by adjusting your withholding.

We still have 6 months to in 2016, it’s not too late to adjust your tax withholdings.

 
Anna Sergunina
anna@adviceonly.net

I passionately believe that in order to live a life of fulfillment and joy, we must genuinely serve each other in any way possible. I found my mission in life to serve others via financial planning. Anna regularly writes about personal finance. Her work appears on Business Insider, Nasdaq, Nerdwallet, among others. Anna is the creator of Money Flow system.

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