As tax law is very complicated, this article is intended only for educational or illustrative purposes and should not be construed to communicate legal or professional advise. You should contact us with any specific questions so we can properly interpret how the tax laws applies to your situation. Killingbeck Tax Preparation, Kokomo, Indiana. 765-452-8000.
Each year we get the important question of "How Can I Increase My Tax Refund" (or Not Have to Owe)?
The easiest way to increase refunds
(or not owe) is to change your withholding. For example, holding out an extra $10 a week will increase your withholding by $500 over a full year. (If you get paid every two weeks, you would need $20 a pay. It takes $40 if you get paid once a month.)
Of course you can have 2 or 3 times as much held out for larger refunds (or not owe). Just realize you'll have less in your paycheck, but receive more at the end of the year (or not have to owe).
To increase withholding
tell you employer what you want. If they ask you to complete a W-4, skip the top Worksheet section. On line 5 write "Same as before" and on line 6 enter the additional Federal you want held out*. (*If you already are having additional withheld, say on the form the total extra amount you want withheld.)
To increase State*, write at bottom of form "Increase my State withholding by $____" and then circle it.
Then follow up
by watching that they have changed your withholding by the proper amount. If not contact them again.
If you wish to have a lower refund
then you need to call so we can advise you. Before you call find out how many withholding allowances from your check that you are presently claiming and what filing status you are presently using.
You can also increase your refund by
increasing your deductions or credits. See the other sections of Common Tax Questions for ideas on tax deductions and credits.
Give us a call if you have questions or we can be of help, 765-452-8000. Killingbeck Insurance & Tax Preparation, Kokomo, Indiana.