Couple Money

Get More Money in Your Paycheck: Calculate Your W-4 Withholding

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How would you like to have more money in your paycheck? Today I share how properly calculating your withholding can help you win with your finances.

I spoke to Bob Meighan, TurboTax’s Vice President and CPA, the other week about ways to lower your tax bill and more.

He mentioned a huge blindspot couples have when it comes to their money.

Their paychecks.

Many couples aren't handling their withholding correctly.

Big Refund Later or More Money Now?

Bob pointed out how people have a choice when it comes to withholding on their wages.

Either you can be conservative, have more withheld, and get a bigger tax refund or you can adjust your withholding and see bigger paychecks throughout the year.

For those who want to have an increase in their take home pay I want to share some tips on how you can calculate your proper withholding.

I also want to introduce you to a very helpful (and free!) tool at TurboTax.

What's a W-4?

I'm not sure how it went with you, but whenever I started a new job at the office I would get a packet of paperwork from Human Resources to fill out and read.

Everytime you start off at new job you should at least receive a W-4. The form assists employers to collect the proper amount of federal income taxes from your wages.

As a rule of thumb, you should double check, review, and possibly update your W-4 whenever the follow happens: 

That's because there's a good chance your tax obligation has changed and you want to adjust accordingly.

The ‘fun' part is calculating the amount.

How to Calculate Your Withholding

To get started, you need to grab last year's tax return (assuming you're making about the same amount of money) and your current paycheck.

Here's what the W-4 will ask you:

As you can see, there are several ways you can answer some questions, so my suggestion is using a withholding calculator to help you out and look at different options.

If you're looking for an easy solution, please check out TurboTax's site and use W-4 Salary Calculator.

It will walk you through everything and guide you through the calculations.

Once you have an idea on how much you need to have withheld for your paychecks you should contact your Human Resources Department and request a new W-4.

Simply fill it out and return it to them.

Another Way to Keep More of Your Money

Are you struggling with student loans?  Refinancing them could save you thousands of dollars!

SoFi can be a wonderful option for you. They offer competitive and low rates (as low as 2.36%!) plus they’re offering a $100 bonus now!

SoFi has simplified the process so you have less hassle. Learn more here and see if you can lower your payments today!

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