2 cents worth
I realize that our situations are completely different, but this could help someone else, so I am going to post it here. I never work anywhere without ensuring that they withhold extra from my pay for deductions. I work for the government and they just LOVE to eat your lunch with taxes...trust me...but just to be safe anyway, and to ensure that I get a nice refund at the end of year....I ensure that I have an extra $5, taken out on Fed. and $3, on State, to cover me completely. Some years I will have $5 and $5, held out. My Dad started me on this years ago.
This advice has helped several people out of their tax woes, just by having a few dollars extra taken from their paychecks. They knew there wasn't enough being taken out, they would tell their employers and request more be taken out, but it really wouldn't change. Basically, you need to change it yourself, to ensure it is done. Otherwise you may be owing at the end of the year! Just tell your employer that you wish to complete a new form W-4, so you can have more taxes taken out of your pay. Trust me....you will NOT notice that extra $7-$8, taken from your check. And you will be happier at tax time too. Not only are you covered....you will get a bigger refund check. (Usually...everyone is different)
Some employers, or secretaries/payroll, rather, have been known to try and give employees a hard time with this, going so far as to tell them that they CAN'T do it. That is total bull. You can do it, they are wrong. They are just lazy!! It is your paycheck and your taxes, to do with as you please! Insist they give you a new W-4, it only takes a second for you to complete and only a few minutes for them to take care of it. It may take up to two pay periods to start though, depends on who is doing it.
And here is something else, taking you the opposite way with deductions. Per an Accountant that a friend of mine, who also works for the government, went to see a few years ago.....He just asked her...."With all the taxes that the government takes out on us each year, why did she continue to pay in when she didn't have to?" (We have loads taken out per year and that is besides what I have taken out extra each payday.) She was having some financial difficulties at the time and thought this accountant just might be able to help her, or at least show her where she could be messing up, with money. She never had enough money to last her and was raising two sons. He figured it up for her and told her that by mid-year, or so, that she had already paid in more than enough, even more than some of you do all year. That she could be seeing that money right now, on each check, instead of at the end of year. She paid enough that she would still get a refund at end of year. So, she changed her deductions immediately and enjoyed the rest of year, with that extra cash. (She was my friend, and boss, and just about doubled my salary, which also doubled the deductions basically)
Anyway, if you are having your lunch ate by tax deductions on your paycheck each week....stop your deductions. If you are sure you have enough out already, why keep paying, UNLESS you just really would rather have it at the end of the year, instead of now. About mid-year, or maybe even Aug/Sept., start checking your deductions, to see if you have paid your share in already. Make sure that you have enough deducted though, or you may mess up and end up owing at end of year. To be safe, let another paycheck go by, before changing it. Maybe you don't want the stopped completely and only wish to carry more. That works too. (EX: 'I' personally carry 0, at the highest single rate..I want it at end of year.) You can carry more, change it from 0 or 1, and raise it to 2 , or 3, which in turn takes less out. Truly, it all just depends on what you prefer. End of year refunds, or a lot more in your paychecks now.
And those of you that qualify...don't forget about EITC. You do not have to have a child, or children, to qualify for EITC. If you are single, or married, and make under a certain amount, can't be carried by anyone else, can't be anyone else's qualified child, then you may be eligible. No offense, but alot of women out there never think of this and they struggle each year. They don't make crap, maybe $15,000, or less, a year, trying to raise a child or two. They could be carrying the kids and getting Earned Income. And there are a lot of singles out there making crap also, per year. They can also be getting the Earned Income Credit. Check the IRS page, or your tax books.
**DON'T FORGET.... ALMOST EVERYONE CAN NOW FILE THEIR TAXES ONLINE FOR FREE! AT LEAST YOUR FEDERAL, SOMETIMES STATE ALSO. THIS IS BECAUSE OF THE FREE ALLIANCE ACT, IN CASE YOU DIDN'T REALIZE THIS. JUST GO TO THE IRS WEBSITE, I BELIEVE THAT ADDRESS THERE IS:
http://www.irs.gov/app/freeFile/jsp/all_offers.jsp?
Several different salaries are allowed, to include up to $30,000 and more, per year. One or two only gives free to military. And there is one or two that caters to those that make at least $50,000, per year, or more, PLUS, you are 50 yrs. old, or older! All different kinds. TurboTax Online has it free if you made $27,000, or less, if I remember correctly, and can file the 1040ez form, to include state tax, and also includes if you qualify for EITC.
Check them out...this will save almost everyone money now!
Ok...I have put in my 2 cents worth and rambled long enough. I hope this info I posted will help someone out there. Sorry this is so long!
