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Do you average more than a couple hundred dollars a year in tax refunds?
If you do, you are overpaying your taxes during the year. When you have too much withheld from your paychecks you are giving the government an interest free loan from every check. This is money that you could use to pay down debt.
There are a number of ways to figure out how much should be withheld from your checks. The most popular financial software programs (Quicken, Microsoft Money) have withholding calculators built into them. I personally recommend the method that anyone with an Internet connection can use, the withholding calculator on the IRS website.
Follow the instructions all the way through to changing your W4 with your employer.
When the extra money starts showing up in your paycheck, use it for extra debt payments!
If you do, you are overpaying your taxes during the year. When you have too much withheld from your paychecks you are giving the government an interest free loan from every check. This is money that you could use to pay down debt.
There are a number of ways to figure out how much should be withheld from your checks. The most popular financial software programs (Quicken, Microsoft Money) have withholding calculators built into them. I personally recommend the method that anyone with an Internet connection can use, the withholding calculator on the IRS website.
Follow the instructions all the way through to changing your W4 with your employer.
When the extra money starts showing up in your paycheck, use it for extra debt payments!
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