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:

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The Democrats’ Latest Idea on Taxes Will Only Help Trump  BloombergA top marginal income tax rate of 70 percent is bad economics and even worse politics.
Income tax exemption, relief for farmers? 5 expectations from interim budget 2019  India TodayAs citizens eagerly wait for the BJP-led NDA government to share its budgetary plan for the next financial year, Finance Minister Arun Jaitley's recent speech ...
Cryptocurrency and Taxes: How to Use 2018's Losses to Your Advantage  Bitcoin NewsTaxes have been a hot topic in the cryptocurrency world this year. Many countries have been trying to figure out how to tax crypto assets, while traders.
Google shifted $23bn to tax haven Bermuda in 2017, filing shows  The GuardianFirm used Dutch shell company in move known as 'double Irish, Dutch sandwich' that cuts its foreign tax bill.
NPS investment proof: How to claim income tax deduction  LivemintAn NPS subscriber can also download the receipt of voluntary contribution made in Tier I account by logging into his/her account.
5 Ways to Avoid Taxes on Social Security Benefits  Kiplinger's Personal FinanceYou may need to pay income taxes on a portion of your Social Security benefits, based on your income. But knowing the rules and a few key strategies can help ...
ITR tips: 5 mistakes you should avoid while filing income tax returns  India TodayA number of documents are involved in the process individuals often end up making mistakes that can complicate the process further.
Interim Budget: Will Arun Jaitley tinker with income tax slabs?  Economic TimesWill interim budget 2019 increase the tax-exemption limit? This is the question on many taxpayers' minds. If rumours are to be believed, the interim budget could ...
Moving to tax reform with artificial intelligence - The Jakarta Post  Jakarta PostStephen Hawking once said that intelligence is the ability to adapt to change. Today, were facing a new era of disruption in digital technology. The internet, as ...
Quick Refunds to Pre-Filled Forms: 2020 Tax Payers Look Out  The Better IndiaIn 2020, the goverment with the help fo tech giant Infosys plans to bring about a series of changes in the manner in which Income Tax returns are filed.
Overstock to Pay State Tax in Bitcoin, First U.S. Company to Do So  FortuneOnline retailer Overstock announced it would pay a part of its Ohio state business tax using the famous digital currency.
India exempts rupee payments for Iran oil from hefty taxes  Economic TimesThe finance ministry has exempted rupee payments made to the National Iranian Oil Co. for crude oil imports from a steep withholding tax, according to a ...
Market Movers: Angel tax relief, MNCs have a tax pain & May wins trust vote  Economic TimesHeres a lowdown on top macro triggers that may move market on January 17, 2019.
Venezuela Decrees Crypto Operators Must Pay Taxes in Cryptocurrencies  Bitcoin NewsThe Venezuelan government has published a decree requiring taxpayers with crypto operations in the country to pay their taxes in cryptocurrencies. Similarly ...
Income Tax return processing time to reduce from 63 days to just 1 day  Business StandardThe Union Cabinet on Wednesday approved an integrated income-tax e-filing and centralised processing centre (CPC) portal, which will reduce the return ...
Jersey Shore renters may be shocked by new lodging tax  Allentown Morning CallNew Jersey shore property owners and renters worry that a new tax on short-term lodging like Airbnb rentals could hurt the state's shore economy.
High Court rules against ATO, finding tax debts can be shifted between spouses  ABC NewsA recent High Court case has found that a tax debt of one spouse can be shifted to another during a divorce property settlement, which lawyers say is ...
Should Cumbria set its own taxes?  News & StarCumbria has always done things a bit differently from the rest of the country.
New Evidence Emerges Proving That Yoshi Doesn't Pay His Taxes  Comicbook.comalways is changing colors.The evidence was first unearthed by Twitter user Supper Mario Broth, who shared the discovery via Twitter this week:There exists one ...
Draft PMC budget proposes 12% hike in property tax  Times of IndiaPUNE: Municipal commissioner Saurabh Rao proposed a 12% increase in the collective property tax in the Rs 6085 crore draft civic budget for 2019-20, .
Way to go: Reduction in tax rates of goods and services by GST Council is a welcome step  Times of IndiaThe GST Council, a constitutional body made up of finance ministers of states and Centre, reduced taxes on almost 30 goods and services last Saturday.
Record Malaysia Tax Revenue to Ease Pressure on Budget Deficit  BloombergMalaysia's intake of direct taxes rose to a record last year, easing pressure on a budget deficit that's expected to mark a five-year high.
Brokerages set up shop in Daman to avail tax exemption  Economic TimesMumbai: The Union Territory of Daman and Diu is emerging as a hub for Indian brokerages thanks to a favourable tax law. The region with less than three lakh ...
Ministry to let local bodies send some external products to 'hometown tax' donors as gifts  The MainichiTOKYO -- The Ministry of Internal Affairs and Communications has informally decided to allow local bodies to send goods manufactured or processed in o.
Middle class got ₹2 lakh-crore tax rebate annually during Modi regime, says Jaitley  BusinessLineFinance Minister Arun Jaitley on Friday said the government has given ₹2 lakh-crore tax benefit annually to the middle class without a single tax being raised.
Abe Should Ditch Plan for Sales Tax to Save Economy, Sinai Says  BloombergPrime Minister Shinzo Abe should scrap a plan to raise Japan's sales tax in October as the nation struggles with subdued inflation and tepid growth, according to ...
Kurz Is Meeting the Internet CEOs He's Going to Tax in Davos  BloombergAustrian Chancellor Sebastian Kurz will meet at the World Economic Forum in Davos this week the heads of the Internet giants he's targeting with a tax package.
Taxation should be proportionate but everybody who earns income should pay or finger pointing will never end  The Irish SunTHE line 'it's all about the Benjamins' is from the song of the same name by rap artist Puff Daddy. The song extolled the values of it being all about the money ...
How Wealthy Americans Like Jack Benny Avoided Paying a 70% Tax Rate  Wall Street JournalNew York Rep. Alexandria Ocasio-Cortez's recent call for a top income-tax rate of 70% harks back to an era when the top rate was that much or more—and ...
Angel Tax: Government, Babus Not In Sync With India's Start-Up Story, Says R Chandrashekhar  NDTV NewsThe country's tax laws have some of the biggest names in its tech start-ups worried. Rajan Anandan of Google, along with ten other signatories including ...
Ficci for cut in corporate tax rate in Budget  Economic TimesNew Delhi: Industry chamber Ficci Sunday recommended the government to cut corporate tax rate across the board to 25 per cent irrespective of turnover in the ...
King County property tax bills are coming, and the housing market slowdown won’t lower your bill  The Seattle TimesThe single biggest reason your property taxes go up is because of voters and politicians raising rates — not because home values have skyrocketed in recent ...
Tax optimiser: Chandramouli can cut tax by Rs 83,000 via NPS, tax-free perks  Economic TimesBangalore-based IT professional T. Chandramouli pays a very high tax because his pay structure is not very tax friendly. A good 15% of his income goes up in ...
Budget 2019: Tax relief, greater collaboration with banks - this is what Fintech industry eyes  Zee BusinessBudget 2019 expectations: The Budget 2019 is the next big thing for not only Indian citizens but also for Prime Minister Narendra Modi led government who is ...

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