Why is my tax refund too high?

It boils down to this: If you're getting a sizable refund just about every year and you're having federal taxes held out of your pay, you're probably having too much held out for federal taxes. So when you get a big refund, you're just getting your own money back.

1040.com - Big Refund? How to Adjust Your Withholding – Tax Guide • 1040.com

What if I have 1k followers on Instagram?

Growth is always a good indicator of a successful, thriving account and once you have 1,000 followers, a lot of monetization opens up for you. All...

Last updated Mar 4, 2021

How much does 1m followers make on Instagram?

According to USA Today, an influencer with 10,000 to 50,000 active fans can make a few thousand per post. Instagram influencers with up to 1...

Last updated Sep 8, 2019

Promotion

Getting a big tax refund check from the IRS is so nice, right? You can always find a use for that money, whether it's a big-ticket purchase, paying off a debt, or just adding to your savings. But by getting that big refund every year, you're missing out on even more money. It boils down to this: If you’re getting a sizable refund just about every year and you’re having federal taxes held out of your pay, you’re probably having too much held out for federal taxes. So when you get a big refund, you’re just getting your own money back. True, it’s sort of a mandatory savings account that pays off once a year, but you’re still losing money on the deal. That’s because the IRS gets to use your money for most of the year, without paying you any interest.

Wouldn’t you like to get your money all year long, rather than waiting ’til tax time?

What Do You Have To Gain?

Try this: Add up this year’s tax refund and divide by 12. That’s a ballpark figure for how much extra you could earn, every month. Now, here’s where that “making money” thing comes in. Instead of letting your employer send that amount to Uncle Sam, just set aside that amount into an account that earns you interest. These days, that won’t be a lot, but a little is better than none, which is what the IRS gives you.

How to Change

Your employer may ask you in December or January if you want to make changes to your withholding. But you can request a change at any time; just fill out and hand in another Form W-4. If you always get a big refund – and you’d rather have that money in your pocket every month – increase the number of personal allowances on the W-4 worksheet to have a tad more money taken out for taxes. On the other hand, if you usually owe taxes every year, you may want to decrease the personal allowances. If you need help, the IRS has a withholding calculator that can help you figure how much you need to hold out. If you manage your withholding amounts correctly, you can get a little more in your paycheck – and still not pay any extra taxes at the end of the year.

Who Else Needs to Apply

Other than when you’re consistently getting big refunds or owe a lot at tax time, it’s a good idea to review and adjust your withholding when:

Why do I push everyone away?

Fear of intimacy Pushing people away is one way of avoiding intimacy. In fact, this avoidance can act as a defense mechanism for people afraid of...

Last updated Nov 19, 2022

What is Google's social network?

Google+ Type of site Social networking service Identity service Predecessor(s) Google Wave (2009–2010) Google Buzz (2010–2011) Owner Google Created...

Last updated Sep 6, 2021

Promotion

What should you not post on Instagram?

We do allow content that references self-injury and eating disorders if it is for the purpose of creating awareness or signposting support. Graphic...

Last updated Jan 27, 2019

How do TikTokers receive their money?

Other built-in TikTok monetization features Some TikTokers also make money by receiving virtual "gifts" during livestreams or in other parts of the...

Last updated Jan 12, 2022

Promotion

How to make six figures working from home?

Top 11 Side Hustle Income Ideas to Make Six Figures Online Run a Blog. ... Dropshipping. ... Become an Influencer. ... Create an Online Course. ......

Last updated Jan 24, 2020

Promotion

What's a good 10k time for a woman?

Average 10K time for women To be among the fastest 10% of women, you must run below 51:41 minutes (the average pace of 8:19 min/mi), and to be...

Last updated Jun 21, 2020