How to Give Yourself an Economic Stimulus Tax Rebate
There has been plenty of coverage on the news about Obama's economic stimulus tax rebate for workers. It is a great way for hard working individuals and families to see a little extra cash on their checks. However, did you know that if you normally receive a tax rebate check each year, you could have a substantial amount of money added to every check? This article will tell you how to give yourself an economic stimulus tax rebate, which is perfectly legal and will even help the economy.
- Difficulty:
- Easy
Instructions
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1
W4 tax form
Request a new W4 tax form from your employer. When you increase your W4 exemptions, less taxes are withheld from your paycheck and you get more on your net pay. Likewise, if you decrease your W4 exemptions, more taxes are with held from your paycheck and your net pay is reduced.
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Withholdings
Review your withholdings. If you usually get a tax refund each year, it is likely that you aren't claiming enough exemptions. This is, essentially, like giving the government an interest free loan. You should have access to your money when you need it. You should not have to wait an entire year to spend the money you work hard to earn throughout the year.
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Exemptions
Calculate your exemptions. There are some great online calculators that will help you determine how many exemptions to file on your W4. Also, the W4 tax form has a manual calculator on the back.
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Bigger Paycheck
Increase your take home pay! Complete a new W4 form with your updated withholdings and turn it in to your employer. Enjoy your very own economic stimulus package!
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Tips & Warnings
Changing the exemptions only impacts your take home pay, your net taxes are not impacted.
