A Month Of Savings Starts TODAY – 7/1
A Month of Savings – 07/01/2008
For the next month, I am going to post 1 tip per day under the heading “A Month of Savings”. If you do each tip, as they are posted, you will save a ton of money. Well, not actually a ton. The value of a ton of money would depend on the denominations of the coins and/or bills.
Today’s entry deals with your W-4 and the interest-free loan you are most-likely giving the government. You probably remember the post I made on getting a huge tax refund. If you go to borrow money, you will be charged interest by the lending institution. If you received a $5000 tax refund from the government last year, you are giving the government a $5000 loan without charging them any interest.
You can fix this by adjusting the allowances on your W-4 forms. In 2008, each allowance is worth $3500 off of your income.
Don’t give the government a free loan. See the links below for more information on this issue:
- Form W-4 And Your Take-Home Pay
- Changing Your Withholdings
- How many exemptions did I claim on my W-4?
- It pays to be on the mark on your W-4
- Tax Law: Questions and Answers
Please come back and post your thoughts about this post. You can even share what you did with the readers.