It’s Tax Time Again

The fact is, on most employment checks Uncle Sam and the United States government claims more than its fair share in income tax. Then in April the recipients of those employment checks have to fight to get their share back. Is this just idle complaining against the government or is there something to it?

Here’s a statistic that might answer that question. In the year 2011, 145 million individual tax returns were filed. 109 million of them called for refunds. That’s 75% of all individual taxpayers who had to give away more money to the government than they had to every pay day. Nice work if you can get it.

It’s great to get tax refunds, but wouldn’t it make more sense to actually get your money when you earn it? Here’s an easy tip to use to avoid giving The Man too much on pay day:

*** File a revised W4 form with your employer. The information on that W4 form determines how much federal income tax is withheld from your checks. Basically, the more allowances you claim on the W4, the less income tax will be withheld.***

Here’s an example of how this works: 

***The 15% tax bracket is an individual with taxable income from $8,700 to $35,350 or if you are married or file jointly the income will be from $17,400 to $70,700. Now, if you claim an extra five allowances this will lower the amount the government takes from each pay check to about $237.50 a month. Nice work if you can get it… and you know what… you can.***

 

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