American poet James Oppenheim once said, "The foolish man seeks happiness in the distance, the wise grows it under his feet." Taking Oppenheim's advice, you may not want to wait until next spring to receive your overpaid taxes for 2009. Why not adjust your tax withholdings and enjoy that money now?
Every year, millions of U.S. taxpayers receive a check from the government because they overpaid their income taxes in the prior year. If you're one of those millions, you probably enjoy the windfall as an excuse to splurge a little. The thing is, overpaying your taxes during the tax year amounts to making an interest-free loan to the U.S. Treasury.
If you had the extra money in your pocket right now, you could be using it to pay down debt or increase your savings. Either of those activities provides added financial benefits: several months of forgone interest costs or several months of investment earnings.
Tax withholding resources
If you normally receive a sizeable refund every year, you can probably add an allowance to your W-4 without issue. But, to avoid making costly mistakes, it's advisable to check a few free tax planning resources.
The choice is ultimately yours: look forward to next spring to receive your refund, or get it now. The poet in you might prefer the latter.
Every year, millions of U.S. taxpayers receive a check from the government because they overpaid their income taxes in the prior year. If you're one of those millions, you probably enjoy the windfall as an excuse to splurge a little. The thing is, overpaying your taxes during the tax year amounts to making an interest-free loan to the U.S. Treasury.
If you had the extra money in your pocket right now, you could be using it to pay down debt or increase your savings. Either of those activities provides added financial benefits: several months of forgone interest costs or several months of investment earnings.
Tax withholding resources
If you normally receive a sizeable refund every year, you can probably add an allowance to your W-4 without issue. But, to avoid making costly mistakes, it's advisable to check a few free tax planning resources.
The choice is ultimately yours: look forward to next spring to receive your refund, or get it now. The poet in you might prefer the latter.
No Response to "Put More currency in your Pocket by Adjusting Tax Withholding"
Post a Comment
Note: Only a member of this blog may post a comment.