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Single guy wanting to adjust tax witholding

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  • #1

    Single guy wanting to adjust tax witholding

    Hey guys, Im new to the forum here.... I have recently been wondering ways to get more money throughout the year, I recently did a google search on better budgeting. I read an article that you can adjust your w-4 to take out less taxes throughout the year.

    Here is my situation-I'm single, 26, no kids, work 40 hours a week and will start classes in March. What if any adjustments to my tax witholding could I make to my w-4 to get more money back throughout the year? If this matters I'm currently getting 20.5% of my check getting taken out to the various taxes each check.

    I really would like to start saving more but just find it tight to do so.

    I also would like to add-I spend maybe 20 dollars a month on beer, I am a regular smoker but spend about 25 a week on that. I am going to ditch cable, seeing as how im on my PS3 most of the time anyway, I do not do any drugs, I go to the casino maybe once every 3 months with about $60 if that, I spend a lot of time in the house seeing as how I do work from home. But I would love to start chipping away at debt more and more. Just seems as if my checks are a little smaller and I live check to check.

    Any advice would be appreciated!
    Last edited by HuskerBury; 01-12-2013, 04:49 PM.
    Tags: None
  • #2
    Originally posted by HuskerBury View Post
    Hey guys, Im new to the forum here.... I have recently been wondering ways to get more money throughout the year, I recently did a google search on better budgeting. I read an article that you can adjust your w-4 to take out less taxes throughout the year.

    Here is my situation-I'm single, 26, no kids, work 40 hours a week and will start classes in March. What if any adjustments to my tax witholding could I make to my w-4 to get more money back throughout the year? If this matters I'm currently getting 20.5% of my check getting taken out to the various taxes each check.
    What is your average tax refund each year? Take that and divide by 12. That's how much more roughly should be in your paycheck each month.

    It's called a refund because you've withheld too much.

    The best thing for you to do to fix it is to use the W-2 Calculator available for free at IRS.gov (when it's working). I believe they're still updating it for 2013.

    Link: IRS Withholding Calculator

    I really would like to start saving more but just find it tight to do so.

    I also would like to add-I spend maybe 20 dollars a month on beer, I am a regular smoker but spend about 25 a week on that. I am going to ditch cable, seeing as how im on my PS3 most of the time anyway, I do not do any drugs, I go to the casino maybe once every 3 months with about $60 if that, I spend a lot of time in the house seeing as how I do work from home. But I would love to start chipping away at debt more and more. Just seems as if my checks are a little smaller and I live check to check.

    Any advice would be appreciated!
    What made you decide to start looking more into your budget? Any specific concerns you want addressed?
    Also, in addition to knocking out some debt, do you have any other financial goals you'd like to achienve?

    The best next step would be if you could post your full budget. (Income and expenses)

    When I review a budget, I start with the largest expenses and work towards the smallest ones. You are starting with relatively small expenses IMO.

    If you could post the following, that would allow us to give you better insight in where you can free up funds each month.

    1) Income (before and after taxes, estimate if needed for variable income)
    2) List of expenses
    3) Any debts you have, along with their interest rate (CCs, car, mortgage, furniture, Student Loans, etc.)
    4) Any assets you have (bank account balance, IRA balance, 401k balance

    Welcome to the forums

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    • #3
      Oh I just want to get some more saved up and would love to buy a house in a few years.

      As far as getting the most back throughout the year, what adjustments would I need to fill in on 2013 w-4? That is where I'm confused, do I need to put so many allowances or something like that? I tried doing a google search but they all say to use that calculator, but hard to when its not working. Or is that calculator going to tell me what to put on a new w-4 so I can get the most back on my checks?

      Thanks guys!

      Comment

      • #4
        The IRS withholdings calc will tell you at the end how many allowances you should take so you don't owe or get a refund at the year end.

        Comment

        • #5
          Originally posted by HuskerBury View Post
          Oh I just want to get some more saved up and would love to buy a house in a few years.
          Then we'd love to help. Would you be able to post your budget?

          As far as getting the most back throughout the year, what adjustments would I need to fill in on 2013 w-4? That is where I'm confused, do I need to put so many allowances or something like that? I tried doing a google search but they all say to use that calculator, but hard to when its not working. Or is that calculator going to tell me what to put on a new w-4 so I can get the most back on my checks?

          Thanks guys!
          It may not be as cool as having the calculator help, but you can do it by hand too.

          http://www.irs.gov/pub/irs-pdf/fw4.pdf


          Was able to find that form. You have to go through and calculate it out to try and be more exact. Still works though.

          It tells you how many allowances to put on your W4.

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