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Should I take more taxes out of my check?
This year I made about $30,000 and got almost $1500 back. If I take and additional $5 out of each weekly check this year, does that mean I'll get almost $4000 back next year?
Thanks Jeff... Meant $50 not $5. Sorry for the confusion. And I just randomly picked a number. I tried to keep the math simple, but messed up with the "typo."
6 Answers
- Jeff TLv 61 decade agoFavorite Answer
$5 a week * 52 weeks = $260.
If you're thinking of getting a $4,000 refund, you'd need to have an extra $50 a week, not $5 a week.
But, you can do the same thing by putting an extra $50 a week into a savings account and not touching it for the year. Then you'd get the $1,500 from the IRS refund, and have $2,500 in the bank, plus pick up a few extra bucks in interest while you're at it.
- ?Lv 71 decade ago
Receiving almost $1,500 back is not good... it means you overpaid your taxes the year before. It means you gave the government an interest-free loan.
Go to your employer and fill out a new w-4 form, and claim one or two more exemptions than what you are claiming now. This will result in less taxes being taken out of each paycheck... more money for you each pay period.
Deposit this extra money so you can start earning interest on it.
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- Anonymous1 decade ago
the gov doesn't like being your bank.