More Money in Your Paycheck
Are You Getting a Refund?
A homeowner’s tax savings benefit is generally realized when they file their federal income tax return after paying interest and property taxes on their home. Some people look forward to the refund as a means of forced savings, but some people would rather receive the benefit of that savings during the year.
Adjust Deductions from Paycheck
It is possible to adjust the deductions being withheld from the homeowner’s salary, which means more money in their pay checks throughout the year. Employees can request their employers increase their deductions stated on their W-4 form.
By increasing the exemptions or deductions, less is taken out of the check, and the employee will receive more each pay period. Be aware that if a person over-estimates their exemptions, thereby underpaying their income tax, they might incur interest and would have additional tax to pay when they file their tax return.
Obtain Tax Advice
Buyers considering this strategy should seek tax advice and discuss it with their human resources department at work. Additional information is available on the Internal Revenue Service website about Completing Form w-4 and Worksheets