How to Give Yourself a Tax Cut Video

How to Give Yourself a Tax Cut

This "How to Give Yourself a Tax Cut" video requires the latest version of Adobe Flash Player.
Download Flash

Get Flash

How to Give Yourself a Tax Cut -

Don't give Uncle Sam an interest-free loan. Here's how to keep more of your money.

How to Give Yourself a Tax Cut -

Don't give Uncle Sam an interest-free loan. Here's how to keep more of your money.

Added: 8/19/08

Tags:

How to Give Yourself a Tax Cut getting tax deductions janet bodnar kevin mccormally kiplinger paycheck tax tips salary tax advice tax back tax return tax tips

URL:

Embed: (More)

Comment on this Video

Your Name: Email (optional):

Are you human?

Comments
Add-ons
Links
Transcript

Get it off your chest – be the first to comment on this video!

How to Give Yourself a Tax Cut

Kevin McCormally: I am Kevin McCormally of Kiplinger's, I am here with Janet Bodnar, Deputy Editor of Kiplinger's Personal Finance magazine. Janet we always know as Americans we look at the Congress to cut our taxes, but I understand Kiplinger says, there is a way that most tax payers can give themselves the tax cut. Janet Bodnar: And it's a great thing Kevin. Everybody looks forward to getting their tax refund at the end of the year, in fact a hundred million Americans, this would be single peoples and families, do get tax refunds each year. But what that really means is they are having too much, with help from their paychecks every payday. Kevin McCormally: So how much money, we are talking about? Janet Bodnar: We are talking about an average refund check of $2200.00 which means about $200.00 a month for the average family. Kevin McCormally: Well, you have got my attention, how do I stop that and give that money in my pay check? Janet Bodnar: What you do, is you go to your HR department and you ask to fill out a new W-4 form, as the form that you fill out that tells your employer how much to withhold from your pay check. What do you want to do, is claim as many allowances as you can because the more allowances you claim on that W-4, the less money is going to be withheld from your paycheck. Kevin McCormally: How I know, how many allowances to claim? Is that the same number that I claim exemption on my tax return for my wife and kids? Janet Bodnar: You know, that's what most people do Kevin and that's really wrong because you may very well being entitled to more allowances. For example, if you have a lot of itemized deductions, you are allowed to claim an additional allowance and there are other situations like this as well, and you don't even have to figure it out on your own. The IRS makes it easy for you to have a calculator on there site www.irs.com, that will figure out for you, how many allowances you are entitled to. Kevin McCormally: Okay, so after I make this change on my W-4, how long before I see the effect in my paycheck? Janet Bodnar: Next paycheck you can probably see the effect, and think of it, it's first of all is instance clarification plus it's like getting your tax refund in advance, and in installments. Kevin McCormally: Thank you very much Janet.

Kiplinger - Timely Trusted Personal Finance Advice

Personal Finance Business Resources Retirement and Financial Advice

http://www.kiplinger.com

Featured Links:

Can The Bush Tax Cut Work?

Can the impending economic stimulus package that the Bush administration is creating have the power to keep the US from recession? This article discusses some of the factors of the economic crisis.

http://www.articlesbase.com/taxes-articles/can-the-bush-tax-cut-work-371729.html/9461024403

Kevin McCormally: I am Kevin McCormally of Kiplinger's, I am here with Janet Bodnar, Deputy Editor of Kiplinger's Personal Finance magazine. Janet we always know as Americans we look at the Congress to cut our taxes, but I understand Kiplinger says, there is a way that most tax payers can give themselves the tax cut.

Janet Bodnar: And it's a great thing Kevin. Everybody looks forward to getting their tax refund at the end of the year, in fact a hundred million Americans, this would be single peoples and families, do get tax refunds each year. But what that really means is they are having too much, with help from their paychecks every payday.

Kevin McCormally: So how much money, we are talking about?

Janet Bodnar: We are talking about an average refund check of $2200.00 which means about $200.00 a month for the average family.

Kevin McCormally: Well, you have got my attention, how do I stop that and give that money in my pay check?

Janet Bodnar: What you do, is you go to your HR department and you ask to fill out a new W-4 form, as the form that you fill out that tells your employer how much to withhold from your pay check. What do you want to do, is claim as many allowances as you can because the more allowances you claim on that W-4, the less money is going to be withheld from your paycheck.

Kevin McCormally: How I know, how many allowances to claim? Is that the same number that I claim exemption on my tax return for my wife and kids?

Janet Bodnar: You know, that's what most people do Kevin and that's really wrong because you may very well being entitled to more allowances. For example, if you have a lot of itemized deductions, you are allowed to claim an additional allowance and there are other situations like this as well, and you don't even have to figure it out on your own. The IRS makes it easy for you to have a calculator on there site www.irs.com, that will figure out for you, how many allowances you are entitled to.

Kevin McCormally: Okay, so after I make this change on my W-4, how long before I see the effect in my paycheck?

Janet Bodnar: Next paycheck you can probably see the effect, and think of it, it's first of all is instance clarification plus it's like getting your tax refund in advance, and in installments.

Kevin McCormally: Thank you very much Janet.

Transcription by: Scribe4you Transcription Services