- 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

Understanding Credit Scores

Credit scores matter -- learn how to improve your score.

View Course »

Economics 101

Intro to economics. But fun.

View Course »

TurboTax Articles

Video: Tax Guidelines About Gifting

Note: Some of the content of this video applies only to taxes prepared prior to 2012. It is included here for reference only. Find out the tax guidelines about gifting with help from TurboTax in this video on tax tips.

Video: What are Income Tax Rates?

Note: The content of this video applies only to taxes prepared for 2010. It is included here for reference only. Income tax rates change depending on both the amount of money you make and how you made it. Find out about income tax rates with help from TurboTax in this video on tax tips.

Video: How To Reduce Errors on Your Tax Return

Did you know that errors on your tax return can affect the amount of your tax bill and the amount of time it takes to get a refund? Fortunately, TurboTax helps you avoid errors AND be sure you're getting all the tax deductions and credits you deserve.

Does Your Company Need to File Form 1095-B?

A company is responsible for filing IRS Form 1095-B only if two conditions apply: It offers health coverage to its employees, and it is "self-insured." This means that the company itself pays its employees' medical bills, rather than an insurance company. A company that doesn't meet both conditions won't have to deal with Form 1095-B. Its employees might still receive a 1095-B, but from their insurer, not the employer.

Video: Who Qualifies for an Affordable Care Act Exemption (Obamacare)?

The Affordable Care Act requires all Americans to have health insurance or pay a tax penalty. But, who qualifies for an Affordable Care Act exemption? Find out more about who qualifies for an exemption from the Affordable Care Act tax penalty, how to claim an exemption on your tax return and how the Affordable Care Act may affect your taxes with this video from TurboTax.

Add a Comment

*0 / 3000 Character Maximum