- Days left
No, this isn't one of those dumb headlines that's a lie and just meant to get you to read. It's actually true. Every year you wait for that nice fat tax refund from the government, right? Well why wait, when you can have that money in your hand now? Start filling your piggy bank right away instead of waiting until April.

If you're getting a big refund each year, you're having too much money withheld from your paycheck. So the government is taking extra money from you every two weeks, using it for whatever it wants, and giving it back to you in April without paying you any interest. How much sense does that make? Why are you letting the government use your money for free all year?

You need to reduce your withholding, and that's easy. All you have to do is go to your payroll department and ask to fill out a new W-4. You should also ask how many "withholding allowances" you're currently claiming. (This is easy for them to find out and they shouldn't have any objection to telling you.)

The more allowances you claim, the less money is withheld from each check. So you want to increase that number in order to take home more pay each week. Try it out and see how you like it. This isn't a permanent thing... if you need to change your allowances in the future, you can. Your employer cannot stop you.

Just remember that if you do this, you won't be getting that big refund in April. But if you're getting more money each paycheck, why not set up an automatic savings plan and have $50 or $100 automatically set aside into a savings account for you? Then you can start building an emergency fund and earn interest on your money at the same time. See? You really don't have to wait for your refund!

Tracy L. Coenen, CPA, MBA, CFE performs fraud examinations and financial investigations for her company Sequence Inc. Forensic Accounting, and is the author of Essentials of Corporate Fraud.

Increase your money and finance knowledge from home

Economics 101

Intro to economics. But fun.

View Course »

Getting out of debt

Everyone hates debt. Get out of it.

View Course »

TurboTax Articles

Will Medicare/Medicaid be Impacted by ACA?

The Affordable Care Act put in place significant tax-related programs that impact Medicare and Medicaid, such as increased Medicare taxes on earned and unearned income for high-wage earners, and Medicaid changes that increase the number of insured individuals. Establishing whether you are affected by the ACA-imposed taxes, or are eligible for certain health programs that fall under the Centers for Medicare and Medicaid Services, is determined by filing your income tax.

8 Things You Think Are Tax Deductible That Aren't

There?s a fine line between looking to save money on your taxes and taking deductions that will raise eyebrows at the Internal Revenue Service. Some taxpayers are tripped up by expenses that they assume are tax deductions, but don?t qualify under IRS guidelines. Here are a dozen items that can lead to unpleasant surprises in case of an audit.

Essential Tax Forms for the Affordable Care Act

The Affordable Care Act (ACA), also referred to as Obamacare, affects how millions of Americans will prepare their taxes in the new year. The law now includes penalties for all who haven?t obtained health insurance -- and those penalties are expected to be paid at tax time. The ACA also provides tax credits to help people pay for insurance, and you can claim those credits when you file your taxes. The Internal Revenue Service (IRS) has introduced a number of tax forms to accommodate the ACA.

How to Determine if You Have Minimum Essential Coverage (MEC)

The Affordable Care Act, also known as Obamacare, requires most Americans to have health insurance that meets a government standard known as "minimum essential coverage," or MEC. Whether your insurance qualifies as MEC depends not on the plan itself, but on how you obtained your coverage.

What are 1095 Tax Forms for Health Care?

In 2014 the Affordable Health Care Act, also known as Obamacare, introduced three new tax forms relevant to individuals, employers and health insurance providers. They are forms 1095-A, 1095-B and 1095-C. These forms help determine if you need to comply with the new shared responsibility payment, the fee you might have to pay if you don't have health insurance. For individuals who bought insurance through the health care marketplace, this information will help to determine whether you are able to receive an additional premium tax credit or have to pay some back.

Add a Comment

*0 / 3000 Character Maximum