Wednesday, January 6, 2010
What is your W-4 saying about you?
How many exemptions are you claiming?
Do you get a large refund at the end of the year?
Do you want the government to use as little of your money as possible?
Many people feel that they would rather be SAFE than sorry and they have large amounts deducted from their earnings and then receive a large refund. These people would rather walk on glass then owe the government any money.
Others feel that they would rather have/use/invest their money all year; they try to MAXIMIZE their exemptions. These people are the risk takers of life, they would rather jump from an airplane then miss out on an opportunity.
You can change your W-4 withholding exemptions at ANY TIME with your human resources department. However, now is the perfect time to contemplate changes. What does your tax refund/debt look like this year? Have you had any major changes: Marriage, Divorce, Births, Adoptions, Children becoming independent, Deceased dependant….? What would you like your tax return’s bottom line to look like next year?