Daily Juice 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.