Are you looking for a way to have more money every month? Do you receive a large tax refund every year? Do you count on this money to make large purchases or to pay off debt? Or does this money go directly into savings? If you do receive a large refund each year, but you really struggle paying your day to day bills you can change the withholdings so that you do not receive a refund. Instead you will receive that money throughout the year, when you really need it.
If you choose to do this you need to make sure that you do not plan on a refund. You need to plan your budget and save for the big expenses. It is smarter to do it this way because you have your money available when you need it and you are not letting the government earn interest on your money.
The easiest way to find out the correct amount for you withholdings is to use the withholdings calculator. You will need to have your most recent pay stubs available because it will ask you specific information of what has been withheld up to this point. You can change your withholdings anytime during the year with your human resources department. If you do make a change this late in the year you will want to adjust it again in January so you do not end up owing additional money.
If you receive the earned income credit every year you can fill out a W-5 form so that you can receive advanced payments on the credits. If you do decide to do this precede with caution. You will owe any money that was paid out to you, if you end up not qualifying for the credit. It is important you read the guidelines before making the decision.
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