How To Get An Instant Pay Raise

As a gentleman was leaving my class recently, he wanted me to clarify something I had said. He was making sure that he should take his four or five thousand dollar tax refund and pay off debt.

I was stunned. This money represented $400-$500 that could have been in his pocket every month. A survey of my friends this week revealed one who was getting back $2800 and one getting $3300 back this year.

Getting a large tax refund (over $500) means you are having too much money withheld from your check every pay period.

Many people use this as a forced saving plan and it does not make any sense. You are loaning the government YOUR money, interest free. Every $1200 in refund is an extra $100 per month you could have used to eliminate debt or invest for your future.

I 'd venture to say that most people who do get large refunds could use this money every month to ease their debt burden. This burden frequently leads to late charges and higher interest rates. Instead, they like the feeling of getting that big check in the mail and figuring out how to spend that chunk of money.

The ideal situation is to either owe or get back $100.

If you get a big tax refund then you should adjust your allowances. The more allowances you claim, the less money is withheld from your check for taxes. It generally does not matter how many allowances you claim. If the government gets it's money they really don't care how many allowances you claim.

Here is how to get it right. Take the time to complete the appropriate worksheets included on Form W-4. The worksheets will help you determine your withholding allowances based on your income, adjustments, deductions, exemptions and tax credits. The worksheets can help you figure the right amount so you don't have too little withheld.

The IRS now has a calculator on their website which you can now access anytime at:,,id=96196,00.html

If you need help ask your payroll administrator at work or an accountant.

Keep your money working for YOU!

Leo J. Quinn, Jr. owner of is a financial educator from the Albany, NY area. For over eight years he has been helping thousands of people get control of their finances and get out of debt in a fraction of the normal time. He has a special offer for readers of this newsletter at rack.asp?AdID=132551

In The News:

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The Populist Government That Can Forgive You For Evading Taxes
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WRTV Indianapolis

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The Denver Post

Hickenlooper asks Colorado's top court to make key decision on taxes
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Colorado Gov. John Hickenlooper has asked the state Supreme Court to determine how the Taxpayer's Bill of Rights and the Gallagher amendment are ...

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CBS News

Is it time to put a tax on meat?
CBS News
Will those favoring taxes as a remedy for health problems now come for our barbecue? Slapping taxes on processed meat and red meat could prevent 222,000 deaths and save $41 billion in global health costs every year, according to a new study.

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Volunteers needed to help prep taxes for Seniors
Some older adults have difficulties doing their own taxes so the Tri-County Office on Aging and AARP have partnered to provide free tax prep for them. However, volunteers are needed to perform the preparation. In a release from Tri-County Office on ...

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Uber to Withhold Mexico Driver Taxes in Landmark Deal
After months of setbacks, Mexico is now on the cusp of rolling out an automatic tax payment system that forms a key part of its effort to crack down on evasion. And the government scored a marquee name -- Uber Technologies Inc. -- to be its first ...

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Belleville News-Democrat

Death and taxes, even in O'Fallon
Belleville News-Democrat
“'Tis impossible to be sure of any thing but Death and Taxes.” These famous words first written by Christopher Bullock in the early 1700s still hold true today. Taxes are an unpopular yet needed way to help provide services that would otherwise not be ...

The Mercury News

The Yellow Vests: Who they are and why their tax protest is a big deal
The Mercury News
The demonstrators who call themselves Gilets Jaunes — the Yellow Vests — staged a fourth day of disruption Tuesday on roads across France as they protested fuel tax hikes. A summary of the issue and the events: What are they protesting?

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