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: http://www.irs.gov/individuals/article/0,,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 http://www.LeoQuinn.com 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 http://www.1shoppingcart.com/app/adt rack.asp?AdID=132551

In The News:

How to correct mistakes made at the time of paying income tax  Economic TimesAt the time of filing income tax return (ITR), if there is any income tax payable pending, then you are required to pay it before completing the process of ITR filing.
The new tax plan |India Today Insight  India TodayThe Modi government considers a Donald Trump-style overhaul of India's direct taxes to increase compliance and reduce 'tax terror'.
Direct Tax Code: All you need to know about govt panel's recommendations  India TodayThe committee has highlighted the need to review existing tax brackets, surcharges and implementation of special guidelines for startups. Concessions have ...
Govt gives businesses four months to settle indirect tax disputes  LivemintNEW DELHI : Businesses can now settle their pending disputes relating to central excise duty and *service* tax within four months starting 1 September under the ...
Govt withdraws higher surcharge tax on FPIs and domestic investors  Economic TimesNEW DELHI: Union Finance Minister Nirmala Sitharaman on Friday announced a slew of measures trying to pump-prime the economy and assuage concerns of ...
Got an income tax notice? Now you can check if it is real or not  Economic TimesYou can now check if the income tax notice or order that you have received is genuine or not. The income tax department has launched a facility on its e-filing ...
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Policy | Put an end to tax terrorism  Moneycontrol.comAbhijit Kumar Dutta. The unfortunate death of Cafe Coffee Day founder V G Siddhartha last month has left an unlikely sufferer — the income tax department.
All tax notices to be issued from centralised system, says FM on tax reforms  Economic TimesFinance Minister Nirmala Sitharaman on Friday said that tax authorities do not have to overreach or harass as the tax targets set in the Budget are well within ...
Govt panel gets time till Monday to submit direct tax code report  LivemintThe panel, led by CBDT member Akhilesh Ranjan, was earlier required to submit its recommendations on Friday.The new direct tax code will try to simplify tax ...
Solution to India's economic malaise lies in cutting taxes and regulation  BusinessLineRather than lower the role of government, Modi has stepped up regulations and enforcement to draconian levels all to justify good governance.
Govt forms committee to rationalise additional taxes on Aviation Turbine Fuel  MoneycontrolThe Aviation Ministry has formed a committee to rationalise additional taxes that airlines have to pay while uplifting Air Turbine Fuel (ATF) at airports across India ...
Income tax changes to 'cheaper' home, auto loans explained in 10 points  LivemintFinance Minister Nirmala Sitharaman today announced a host of measures to revive the economy and shore up market sentiment, including steps to bring down ...
Direct tax committee calls for major changes to reassessment rules  Business StandardThe government-constituted task force for re-writing the direct tax legislation has suggested major changes in provisions for reopening and reassessment, in a ...
Only startups with turnover of up to ₹25 cr eligible for tax holiday: CBDT  The HinduIt did not recognise the ₹100-crore turnover definition of a small startup put up by the Department for Promotion of Industry and Internal Trade.
How a Totally Hypothetical Payroll Tax Cut Would Impact Your Paycheck  Lifehacker AustraliaFor a portion of this calendar week, President Donald Trump considered cutting payroll taxes. “I've been thinking about payroll taxes for a long time,” he told ...
Income Tax Department issues checklist to trace unaccounted demonetisation cash  Economic TimesNEW DELHI: In a bid to seize illegal cash, the Income Tax Department has issued a 17-point checklist to tax commissioners across the country to track those ...
Software firms want SEZ sops to stay, seek tax cut  Economic TimesPropose extension of Special Economic Zones benefits for 20 more years; cite lower tax in other nations.
France is giving unilateralism a go  The Economist“DON'T TAX you, don't tax me, tax that fellow behind the tree.” Historically, this rhyme has poked fun at the tax-shy American public. Today it reflects complaints ...
ITR forms with pre-filled investment data soon  Economic TimesPre-filled forms will soon be able to pick salary breakup directly from an individuals Form 16.
Larry Kudlow says there could be a tax cut before Election Day  CNBCTop White House economic advisor Larry Kudlow said Thursday that President Donald Trump could put forward a tax cut before the 2020 presidential election.
Tax resolution, amnesty scheme announced  The HinduThe government has announced a new scheme aimed at eliminating the bulk of pending tax dispute cases besides providing partial amnesty to those having tax ...
Scott Walker calls for more tax cuts to spur economic growth  Fox NewsFormer governor of Wisconsin Scott Walker called for additional tax cuts to spur economic growth, saying the recent cuts “continue to be good but you can do ...
IMF questions India's tax revenue esimates: Report  MoneycontrolThe International Monetary Fund (IMF) has raised doubts over India's steep tax revenue collection estimates for 2019-20, according to a report in Business ...
DTC panel's proposals may focus on cleaning up, making tax code more efficient, says A Prasanna  MoneycontrolThe focus of the Direct Taxes Code (DTC) panel, which has submitted its recommendations to finance minister (FM) Nirmala Sitharaman, is likely to be on ...
Income Tax Returns filing: DIAL to help 1200 taxi drivers file I-T Returns for free at Delhi airport  Business TodayThe aim of the campaign is not only to help drivers file IT Returns for Assessment Year 2019-20 but also to create awareness among the drivers about the need ...
Capital gains: For FPIs, new SEBI norm is a tax-free ‘gift’  BusinessLineRegulator lets them invest from Gujarat Gift city, which enjoys a 10-year tax holiday.
Donald Trump considers tax cuts to stimulate economy  Financial TimesDonald Trump, the US president, said he was exploring a range of options for new tax cuts to stimulate the economy, revealing the administration's fears of a ...
California pot taxes tick up but miss initial projections  Yahoo FinanceWhen it comes to tax money from marijuana sales, California is living with diminished expectations. The state pulled in $74 million in cannabis excise taxes ...
GST 2.0: Simplified tax system on anvil, says FM  MoneycontrolFinance Minister Nirmala Sitharaman said that the GST refund process will also be made seamless.
Angel tax was figment of people’s imagination: Piyush Goyal  Economic TimesHe stated that the finance minister Nirmala Sitharaman had categorically clarified that there will be no harassment whatsoever.
Amazon is under scrutiny for not paying federal income taxes. Here's how it got its tax burden down to less than $0.  Business InsiderAmazon recorded a net federal tax credit for 2017 and 2018 and the company has paid a low tax rate for years. Here's how it did it.
ITR 2019-20: A simple step-by-step guide to filing your income-tax return  Business StandardFiling Income Tax Returns (ITR) can be a tedious task. Before filing ITR, you will need to create an e-filing account on the Income Tax website, ...
Google, Facebook unite with Trump to protest French tech tax  LivemintThe relationship between President Donald Trump and the largest US technology companies has often been frosty but a common opponent — France's plan to ...
Whistleblower gives House Dems evidence of "inappropriate" conduct on Trump tax returns  SalonHouse Democrats say a federal employee has given them evidence of "inappropriate efforts" on Trump tax audit.
Nirmala Sitharaman Outlines Plan To Rein In "Tax Terrorism"  NDTV NewsAmidst concerns of rising harassment of corporates by tax officials and authorities, Finance Minister on Friday said that the government would take measures to ...
Crypto Taxation Around the Globe — What Do Regulations Look Like?  CointelegraphHere's how today's crypto taxation laws look like across the globe, from the U.S. to South Korea, Switzerland, Japan, Australia and Malta...
What is Direct Tax Code? Report likely today  LivemintThe new direct tax code will try to make personal income tax rates more 'progressive'.Prime Minister Narendra Modi had last year told tax officials that the old ...
Income Tax Return 2019: How freelancers can file their ITR for AY 2019-20  The Financial ExpressITR Filing 2019: Unlike salaried individuals, filing tax returns for a freelancer can get slightly complicated. Here's how they can do it.
GST on electric vehicles, chargers slashed  BusinessLineThe Goods & *Service* Tax (GST) Council on Saturday decided to lower the duty on all electric vehicles (EVs) and the charger for such vehicles. This is the ...
MARKET: Sensex up 228 pts on reports govt may rollback higher tax on FPIs  Business StandardFM Nirmala Sitharaman will address media wherein announcements on steps to revive the economy, clarity on super-rich tax on FPIs, and direct tax code are ...
As Mamata Slams Durga Puja Tax, Top I-T Officer Says Clamour Based on 'Misleading Facts'  News18Kolkata: Income Tax officials have rubbished West Bengal Chief Minister Mamata Banerjee's claim that the I-T department had issued notices to Durga Puja ...
Finance Ministry to cut tax on prize post PM nudge  Economic TimesNEW DELHI: The Finance Ministry has withdrawn the tax exemption it had granted to the cash prize of Rs 1.3 crore received through the Seoul Peace Prize by ...
Pros And Cons Of Tax Exemptions For Religious Institutions  The OnionIssuing tax exemptions to religious institutions has long been a practice of the secular U.S. government, but critics argue that it has a negative economic and ...
10 salary components that can help employees reduce tax burden  Economic TimesYour salary structure consists of several components which can help you reduce your tax burden. While some of these components are fully or partially taxable, ...
Freedom from tax burden for angel funds  Economic TimesExemption from angel tax even if assessment order was passed before February 19.
All tax letters, notices to carry identification numbers to be verifiable online from Oct 1, 2019  Economic TimesStarting October 1, 2019, all letters and notices from the income tax department will carry a computer-generated Document Identification Number (DIN) which will ...
The IRS will waive this 2018 tax penalty for more than 400,000 filers  CNBCIf you paid at least 80% of last year's tax liability and you paid a penalty, the taxman is about to send you some relief. The IRS will automatically waive a tax ...
Democrats Cite 'Evidence Of Possible Misconduct' With Trump Tax Returns  HuffPostA whistleblower apparently contacted House Democrats this summer about potentially "inappropriate efforts to influence" an audit of the president.
10 reasons why you may get a notice from the income tax department  Economic TimesYou may anytime come under the taxman's lens. Here are 10 reasons taxpayers can get an income tax notice.
'Woo Private Sector, Keep Corporate Tax At 10%'  BW BusinessworldToday, the private sector feels harassed. They, instead, need to be wooed. So many people are going abroad. Create incentives for them. Corporate taxes ...
Cut taxes to reduce entrepreneurs’ burden: Kotak Mahindra AMC MD Nilesh Shah  The Financial ExpressOur market is currently compartmentalised in four parts. Super large-caps are trading above their historical average. Large-caps are trading around their ...
Income Tax Return 2019: Pre-filled ITR forms to make filing easier  The Financial ExpressAccording to media reports, the government is in talks with the markets regulator to get details of investment returns of taxpayers. The pre-filled forms will have ...
Income tax notices without a unique ID will soon be treated invalid. 5 points  LivemintThe new rules for issuance of income tax notices with unique IDs will come into effect from October.At present, some notices are issued manually without any id ...
Double Boost: Government Doubles Tax Benefit for Automakers, Defers Revision in Registration Fee  News18Finance Minister Nirmala Sitharaman has announced doubling of tax benefits for automakers in a bid to boost the industry.
Deadline For Filing Income Tax Return (ITR) Is Just 9 Days Away: 10 Latest Details To Know  NDTV NewsThe last date for filing of income tax returns for assessment year 2019-20 (financial year 2018-19) is August 31, 2019. Last month, the government extended the ...
Income tax woes for Jet Airways employees  Times of IndiaIndia Business News: As the deadline to file income tax (I-T) returns draws close, Jet Airways employees have found themselves in a bind as the defunct airline ...
Debt servicing: Govt cuts tax burden on stressed power plants  The Financial ExpressTen power plants had won 25-year coal linkages of 27.2 MTPA in the first round of Shakti auctions where bidders quoting the highest discount to its existing ...
ITR Filing 2019: 5 incomes you must not miss to report in your Income Tax Return for AY 2019-20  The Financial ExpressIt is advisable to be extra careful while filing income tax return this year as even a small mistake can result in the issue of a notice from the Income Tax ...
Trump Says He Can Order Capital Gains Tax Break Without Congress  BloombergPresident Donald Trump said he can cut taxes by indexing capital gains to inflation without congressional approval, a move the White House has been ...
Retain tax sops for genuine R&D  Economic TimesEven as the Direct Tax Code's call to prune tax exemptions is unexceptionable, it would be sensible to retain those for research and development (R&D).
Famed Brooklyn pizzeria Di Fara shuttered over unpaid taxes  New York Post The restaurant owes $167506.75 in unpaid taxes, according to the State Department of Taxation and Finance.
Have you filed your income tax return correctly? Find out  Economic TimesHere's a short quiz to help you understand if you are on the right track to file your income tax return.
Tax notices to soon carry an identification number  LivemintDIN is likely to improve transparency and bring down the processing time of notices.DIN won't be limited to new tax notices. It will also be issued to all the ...
Red Meat Could Be the Next Sin Tax After Sugar, Fitch Says  BloombergMeat could be a target for higher taxes given criticism of the industry's role in climate change, deforestation and animal cruelty, according to a report by Fitch ...
ITR filing: TDS related queries answered by income tax department  Economic TimesAt the time of filing your income tax return (ITR) it is important to ensure that all TDS-related details are correctly filed in the form. Consequently, questions ...
Chicago homeowners are suffocating under pensions and property tax hikes  Washington ExaminerThe nation is more than a decade past the Great Recession, and most places are seeing a strong economic recovery and improved living standards.
Income Tax Department conducts searches at Oberoi Realty, Capacite Infra  MoneycontrolConfirming the development, a senior official of the I-T Department told Moneycontrol there was suspicion on related party transaction within Oberoi and also of ...
Textile companies seek tax incentives, DBT for farmers  Economic TimesNEW DELHI: Indian textile and clothing industry players say one-third of their production capacity is lying idle due to sluggish exports, poor domestic demand, ...
Nervous About Trump: EU Fearful of Including U.S. on Tax-Haven List  SPIEGEL ONLINEAlthough the United States fits the definition of a tax haven, EU officials in Brussels are weary of publicly shaming it on a "black list" of countries that allow ...
These Portfolio Tracking Tools Will Also Prepare Your Crypto Taxes  Bitcoin NewsTax season is months away, which is why you need to start preparing for it now. Leave everything to the last minute and you'll only end up cursing your.
IRS begins tax clampdown on unreported cryptocurrency profits  ZDNetIf you've been trading but not declaring, the tax *service* might be on your case.
Don’t Ban Assault Weapons—Tax Them  The AtlanticThe nation is debating what to do about assault-style weapons, what gun-rights advocates like to call modern sporting rifles. Gun-rights champions argue that ...
Online platforms, CAs arent responsible for wrong income-tax filing  Business StandardFor filing income-tax (I-T) returns this year, say, you take services of an online tech platform. The platform makes a mistake, which doesn't catch your attention at ...
Can children’s school fees paid by the employer be claimed for tax deduction?  MoneycontrolStrictly speaking, since the fee has been paid by the employer, it does not satisfy the condition of 'paid by the individual' and hence should not qualify for a ...
IRS Warnings to Bitcoin Traders Offer Clues to Coming Tax Guidance  CoinDeskThe Takeaway: The IRS' recent warning letters to 10,000 traders offer hints at what its forthcoming guidance on crypto taxes might say. While the letters are not ...
Massachusetts Department of Revenue can withhold data on local marijuana tax distributions, state rules  MassLive.comNew England Treatment Access has opened the first Western Massachusetts medical marijuana dispensary in Northampton. Here, the barcode of a strain is ...
Higher tax surcharge on super-rich: FPI lobby sends wishlist to government  MoneycontrolWith the issue of higher tax surcharge proving to be a thorn, a lobby of FPIs has urged the government to use information on beneficiaries to identify them and ...
How to show your trading and F&O income in the tax returns?  BusinessLineBL Research BureauFor traders, aside from predicting the stock market, reporting income from intra-day trading or Futures & Options (F&O) in the tax ...
You might need to maintain tax returns records for seven years  LivemintIn today's digital age, income tax records can be maintained at little or no expense for long periods of time in a digital format. However, it is important to know the ...
Tax terrorism: Embedded in laws & practice  Business StandardRead more about Tax terrorism: Embedded in laws & practice on Business Standard. Blaming tax officials will not help us get to the root of the issue.
Income Tax raids on Oberoi Realty group, its vendor Capacit’e Infraprojects  Economic TimesMUMBAI: The Income Tax (I-T) Department on Tuesday carried out searches at Oberoi Realty group and its biggest vendor Capacit'e Infraprojects for suspicious ...
South Ogden leaders forego proposed tax hike, 2020 budget to hold steady  Standard-ExaminerSOUTH OGDEN — Taxes don't always go up. South Ogden officials, in fact, have opted not to implement a proposed property tax hike for 2020. Instead, the rate ...
Lightfoot looks to Springfield for more taxing power on high-end services, home sales  Illinois PolicyChicago's mayor wants permission from Springfield to impose a new tax on high-end professional services and raise taxes on pricier home sales, as the city ...
Trump's banks won't tell court if they have his tax returns  CNNLawyers for Deutsche Bank and Capital One repeatedly refused Friday to tell an appellate court in New York whether the banks are in possession of President ...
Buffalo Wings and Opinions: Judge Holmes Talks Tax (Podcast)  Bloomberg TaxU.S. Tax Court Judge Mark Holmes is one of those judges who can make a person glad to be reading a legal opinion. His judgments are often marked by wit, ...
Make America Even Greater: Index the Capital-Gains Tax  National ReviewPresident Donald J. Trump set free-marketeers' pulses racing on Tuesday when he spoke warmly about ending the inflation tax on capital gains. He told ...
Tax revenue shortfall forces Woodlands County to scrap all non-essential spending  CBC.caWoodlands County is scrapping all non-essential spending because of a $9.5-million shortfall in tax revenue.
Added Import Taxes in USA will Only Help Samsung, Tim Cook tells Donald Trump  News18US President Donald Trump has praised Apple CEO Tim Cook for "making a good case" that tariffs on China will help Samsung gain more as it is based in South ...
Do I have to pay capital gains tax if I switch between schemes of same mutual fund?  Economic Times"The switching of schemes would be considered as redemption or sale of units of one scheme and purchase of units of the other scheme."
France says ‘crazy’ that Apple and others get ‘permanent tax haven status’  9to5MacFrench President Emmanuel Macron has defended France's decision to impose a 3% tax on the local revenues of Google, Apple, Facebook, and Amazon.
Do I have to pay tax for the capital gains earned by my homemaker wife?  Economic TimesMy wife is a homemaker and she has invested Rs 40,000 of her savings in stocks. If she sells these stocks and earns short-term capital gains, will I have to pay ...
Fiat, Starbucks Next Up for EU Court Rulings on Tax Bills  BloombergEuropean Union judges will rule next month on appeals by Fiat Chrysler Automobiles NV and Starbucks Corp. against decisions ordering them to pay allegedly ...
Opinion | Let the system tell you your capital gains tax  LivemintA government plan to pre-fill income tax return forms online with details of your capital gains could ease your compliance burden. In time, its coverage could ...
'Volatile' taxes and over-spending a risk to economy, warns watchdog  Independent.ieThe State's reliance on "volatile and unexpected" windfall corporation tax revenues and "weak" management of spending on major projects pose a significant ...
House Democrats say whistleblower bolsters case for getting Trump's tax returns  POLITICOA whistleblower recently made “credible allegations” to the Ways and Means Committee of potentially wrongful interference with the IRS' presidential audit ...
No country for old men? Poland scraps income tax for youngsters  CNNA new law that comes into effect next week will scrap income tax for roughly 2 million young workers in Poland.
Under Budget Pressure, Metro Council Approves Property Tax Hike And Property Dispute Settlement  89.3 WFPL News LouisvilleAs Louisville faces more budget pressures, costs to taxpayers are likely to go up. Some Metro Council members are calling for more oversight.
FMCG companies seek tax relief on dealer discounts to lift sales  Economic TimesFMCG industry has petitioned to remove GST on amount received by dealers as reimbursement against discounts.

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