How to Adjust Your W-4 Income Tax Withholdings To Save Money
- 1). First, you will need to get a blank W-4 form. This can be picked up from your employer's payroll department or you can get it from the IRS website.
- 2). In order to have more take home pay and reduce your refund for a tax year, you will need to increase the number of allowances being withheld from your pay. Turn the completed forms into your payroll department. Instant pay raise!
- 3). If you are unsure how much to withhold, use the withholding calculator on the IRS's web site.
- 4). With the extra money you get in every pay check, use it wisely. Here are some good ideas to make that money work for you:
- pay off or pay down credit card balances
- use it to pay cash for necessities to prevent charging anything new
- put it into a savings account
- purchase U.S. Savings Bonds
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