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

Things You'll Need:

• Employment
• W4 tax form
• Regular refunds from the IRS

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.

2. 
   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.

3. 
   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.

4. 
   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!

Tips & Warnings

• Changing the exemptions only impacts your take home pay, your net taxes are not impacted.

Resources

• H and R Block Withholding Calculator
• IRS Withholding Calculator

[Toelken]

on 6/17/2009 Great Tax cut tips. who wants to let the government hang on to anymore money than they already rip us off for.

[dobguy1]

on 6/17/2009 great info 5 stars

[psaysofavril]

on 6/17/2009 Thanks for the comments, Jim.

[jimdris]

on 6/17/2009 Very good positive ideas!

[vallain]

on 6/17/2009 Many people use their tax withholding as an enforced savings plan. You are right, they would be better off to save the money themselves and earn interest.