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AltReality OP t1_iyb4075 wrote

Reply to comment by Its-a-write-off in Federal taxes are not being taken out of my paycheck... by AltReality

I was used to getting a fat refund at the start of the year. I know people say don't give the govt an interest free loan for the year...but I really liked getting $3-4K back...that was how I paid for vacations and stuff. Now I have to figure out another way to do it.

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Concerned-23 t1_iyb8yrj wrote

The refund was a free loan you gave the government. You’re getting the same money at the end of the year whether it’s a refund when you file taxes or if it’s just accurate tax withholdings during the year. Technically you have more money when you have accurate tax withholdings and no refund. Adjust your budget to have a vacation savings fund

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Its-a-write-off t1_iyb51la wrote

There is a line for that. On the w4, you can set an exact dollar amount of extra withholding. This is a per check amount. So if you are paid 24 times a year, to get a 4k refund put 166 extra withholding per check.

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wowsocool4u t1_iycjbm5 wrote

All that was doing was serving as a savings account. You were overwithholding (i.e. you got smaller paychecks) and then the government gave you the money back at the end of the year. Just start putting a few hundred dollars in a savings account each month.

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