Originally Posted by ford150man
Originally Posted by Darrylcom
Originally Posted by metalmuncher
Refund?


What is a tax refund? Seriously guys if you are getting refunds you paid too much in and they held your money all year and you could have made gains on that extra money in the market. Don’t let the government make extra on you. Owing a few hundred at the end of the year is way better than getting a $3k refund.



That’s not always the case. I work on salary plus commission and get paid a small check three weeks a month then get my commission the other week. Because of this, the government views this large check as a bonus so they hit me at a much higher tax rate. I already claim 9 dependents on my check to try and get the max in pay, then claim the actual amount at tax time. I’ve talked to several CPAs to see if there is anything I can do and they all say the same thing, no. I guess I could try and figure my yearly tax bill, which is difficult to do because my pay fluctuates so much, then once I hit it, just tell my company to stop taking taxes out of my check. Pretty big gamble though. It’s been this way for the last 15 years and I’m used to it.


Your taxes go up that week not because the gov thinks it’s a bonus but let’s say the small checks are $500 each and the big one is $10k. You are taxed 3 weeks like you make $26k a year and the last week you are taxes like you make $520k. That is why you get a refund because at the end of the year you are taxed on your true income. One solution is to ask your employer to treat the 4th check as a bi weekly or monthly payroll. Our payroll company does this for us. Be careful going to monthly for that check you might end up owing. Safer to try biweekly for a while first.