HOW TO USE FORM W-4

HOW TO USE FORM W-4

When was the last time you looked at form W-4? Probably since you started your last job. But do you know this form holds the key to putting more money in your pocket week per week?

Working for INLAND PROFESSIONAL TAX SERVICE for the past few years, has allowed me to help many of clients receive either a large refund or a larger paycheck on a week per week basis.

Remember though, if you modify form W-4 this will mean, in most cases, a smaller refund come tax season. So please contact me when doing this modification.

So how do you determine if modifying form W-4 is good for YOU? Well, if your refund is larger than 5k per year this would be something good to consider. Why? Well in most cases this constitutes a loan you’re giving the government at ZERO interest. If you get that money and invest it in a mutual fund the interest you could gain is any where between 12 to 30 percent depending on the year. Even if you deposit this money into a savings account you gain something. In this case something is better then nothing.

What changes need to be done? By adding dependents you reduce the amount of refund and increase your weekly earnings. This extra money in turn you want to put away into a mutual fund or savings account.

For more information leave your comments. Thank you.