How to Change Your Withholding to Provide More Monthly Cash

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To change your withholding to provide more monthly cash, fill out a W-2 form provided by an employer to get the least amount of money taken out of each monthly paycheck. Get a larger monthly salary, which usually results in a larger tax bill in April of each year, with advice from a registered financial consultant in this free video on money management.

Part of the Video Series: Money Management & Credit
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Video Transcript

One of the best strategies for an employed person who is receiving a payroll and payroll deduction is to change their withholding so that they'll have more available cash. The way to do this is to ask your employer for a form W2, and the form W2 has various boxes and coding instruments on there where you can change your overall coding as a taxpayer, which will allow you to have less money withheld at source, and therefore, a bigger paycheck at the end of your pay cycle. You must be careful not to abuse this practice or there are certain benchmarks that you can't cross over, but many people over deduct as a result of mismanaging their profile with their employer. If you do this however, you will have less money withheld, and you may have a bigger tax bill come time for April fifteenth of the following year, so it's a trade-off. If you want more cash now, versus paying more taxes later on. It's a, it's a strategy. When it's executed correctly it can benefit you, so make sure you seek counsel when you do this, perhaps from an accountant. This is Patrick Munro, financial advisor.

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