Tax day observation

[bobmed]

Yesterday I got my paycheck and it only had half the hours on it.
Today I got a second check for the other half of the hours.
By getting two checks instead of one my taxes were $45 less than when I get one check for all the hours together.
That's about $1.13 more an hour I could take home if they pay me half and half.

 

[Tacoma]

My first year in business I paid enough in taxes to cover a well-paid part timer's wages. That kind of made me angry, and had an accountant after that.

 

[Chevycrew]

Yesterday I got my paycheck and it only had half the hours on it.
Today I got a second check for the other half of the hours.
By getting two checks instead of one my taxes were $45 less than when I get one check for all the hours together.
That's about $1.13 more an hour I could take home if they pay me half and half.

When it adds up at the end of the year, the total amount you pay in taxes will still be the same though...

Just think how much you would bring home without any taxes!

 

[RockMonkey]

Yeah, you're not really getting any more, they're just withholding less. At the end of the year when you do your taxes, the amount will be the same either way. If you're getting a refund every year, you should adjust your withholding to take more money home on every check.

 

[Stephen]

If you're getting a refund every year, you should adjust your withholding to take more money home on every check.

This is a very wise thing to do. As cool as getting a refund is, basically you just gave the government a year long interest free loan on that money. My wife and I try to be right on the dot with our taxes, perhaps even owe a little. That way we get the maximum dollars on each check.
(I cannot take credit for thinking this way, my wife is the economist.)

 

[wally]

This is a very wise thing to do. As cool as getting a refund is, basically you just gave the government a year long interest free loan on that money. My wife and I try to be right on the dot with our taxes, perhaps even owe a little. That way we get the maximum dollars on each check.
(I cannot take credit for thinking this way, my wife is the economist.)

I am just the other way on this. I understand I am giving them my money as a "loan". However I like getting back the lump sum at the end of the year. I am not sure I would be able to save the money through out the year so that is another reason we over pay.

 

[mesha]

I make sure I get a refund. Not hoping for a giant check or anything. My parents use a tax guy at a large firm(a real one not H and R). He told them what numbers to use on the forms all year. Then due to something done by the employer not the tax guy or my parents they owed 16000 at the end of the year. They paid payments for like three years to pay that off. I like the little bit of cushion of getting a refund. Maybe I will try it the other way though now that I work for the schools so hopefully they won't make me a contractor without telling me.

 

[jackjoh]

I am just the other way on this. I understand I am giving them my money as a "loan". However I like getting back the lump sum at the end of the year. I am not sure I would be able to save the money through out the year so that is another reason we over pay.

I admit that if you have a hard time saving this is one way of doing it. I always had a set amount taken out of my paycheck each month and put in a savings account. It was done through the companies Credit Union. This way there was no penalty, giving the government money before due, and it made a small interest. It was a good way to form a good habit.

 

[bobmed]

The biggest refund I ever got was $400 and I've only had to pay twice, once $50 and another time was $100.

 

[jdub]

This is a very wise thing to do. As cool as getting a refund is, basically you just gave the government a year long interest free loan on that money. My wife and I try to be right on the dot with our taxes, perhaps even owe a little. That way we get the maximum dollars on each check.
(I cannot take credit for thinking this way, my wife is the economist.)

I'm with you, I have had to pay 2k some years but I took everything home when I earned it and just had some in the bank. I am not a saver, I don't like the gvt. forcing me to save. Now I pay normally but I still like to cut it close. This year we still payed but it was small. The only downer is that if you owe, you pay $70+ in penalties which I was unhappy with finding out this year. I am shooting for a 200 dollar return this year!