We get what you meant (w2), but in case it wasn’t a typo, the w4 is what you submit when you start a job instructing the employer on how to modify what is taken out of your paychecks. They try to make them friendly for people by saying choose a number on certain lines pertaining to how many dependents you have because they expect you will get a larger return at the end of the year, so if you take more out up front you will still break even or still get some of your money back at the end of the year. If you know what you have/will have you can actually do all the math yourself up front and modify the amount taken out so the government isn’t holding any of your money hostage throughout the year and you get it back in your paycheck, and end up having it at $0 owed at the end.
For most people they don’t think it’s worth it, but anyone who gets a $1800 or $3500 dollar tax return or such at the end of the year, is not doing their taxes very smart. As that’s 3500 you could have invested or used for other things throughout the year.
I did mistype, as I meant W2. As for the other part of your post, I’ve set-up my W4 so that I pay the right amount in taxes…My tax return tends to be in the 300 dollar range. That is not very much money being held hostage by the government, Kansas State taxes are weird, but at least I don’t own them much anymore these days. It used to be that I owed them money, but, I’ve dialed it in to make sure they own me a pittance that isn’t even worth sending me to my bank account.
We get what you meant (w2), but in case it wasn’t a typo, the w4 is what you submit when you start a job instructing the employer on how to modify what is taken out of your paychecks. They try to make them friendly for people by saying choose a number on certain lines pertaining to how many dependents you have because they expect you will get a larger return at the end of the year, so if you take more out up front you will still break even or still get some of your money back at the end of the year. If you know what you have/will have you can actually do all the math yourself up front and modify the amount taken out so the government isn’t holding any of your money hostage throughout the year and you get it back in your paycheck, and end up having it at $0 owed at the end.
For most people they don’t think it’s worth it, but anyone who gets a $1800 or $3500 dollar tax return or such at the end of the year, is not doing their taxes very smart. As that’s 3500 you could have invested or used for other things throughout the year.
I did mistype, as I meant W2. As for the other part of your post, I’ve set-up my W4 so that I pay the right amount in taxes…My tax return tends to be in the 300 dollar range. That is not very much money being held hostage by the government, Kansas State taxes are weird, but at least I don’t own them much anymore these days. It used to be that I owed them money, but, I’ve dialed it in to make sure they own me a pittance that isn’t even worth sending me to my bank account.