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The tax withholding exemption you take on your W-4 form will dictate whether or not you pay in too much, or end up having to pay in while you file your taxes. If you have too many tax withholding exemptions you end up paying into the government. While, on the other hand, if you do not claim enough you will be lending the government your money.
Yes, you get this money back, but in the meantime you could be using that money for other things while you are waiting for your return.
Review Your Tax Withholding Exemptions
There are several things that can changed your tax status throughout the years, so it is a good idea to review your exemptions every few years. If it looks like you have ended up paying in too much for the year, then you can begin planning your withholding for the new year.
Keep Withholdings At Minimum Levels
Calculate how much you will be paying in based on your income level. Let your money work for you instead of the government. When figuring out your withholding, keep it at the minimum level without incurring any penalties.
Claim All Exemptions You Can
The more exemptions you claim, the more money you can put into your pocket each payday instead of it being withheld. If you can claim the maximum exemptions, then it will help you through the year instead of waiting for a refund.
Yes, you get this money back, but in the meantime you could be using that money for other things while you are waiting for your return.
Review Your Tax Withholding Exemptions
There are several things that can changed your tax status throughout the years, so it is a good idea to review your exemptions every few years. If it looks like you have ended up paying in too much for the year, then you can begin planning your withholding for the new year.
Keep Withholdings At Minimum Levels
Calculate how much you will be paying in based on your income level. Let your money work for you instead of the government. When figuring out your withholding, keep it at the minimum level without incurring any penalties.
Claim All Exemptions You Can
The more exemptions you claim, the more money you can put into your pocket each payday instead of it being withheld. If you can claim the maximum exemptions, then it will help you through the year instead of waiting for a refund.
