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If You Or Hubby Work Outside The Home, You Need To Do This ASAP.

Posted by on Oct. 15, 2014 at 11:43 AM
  • 28 Replies

 

Poll

Question: Have you revisited your W4 since your first day on the job?

Options:

Yes

No


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Total Votes: 28

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Most people working outside the home have their W4 filled out incorrectly. W4 not W2. W4 should be revisited ever year without fail. Most people are handed a W4 the first day on the job with no instructions on how to fill it out or really what it's all about. This form allows you to tell the government how much money to take out of your check every pay period. Well most fill it out and never look at it again. So if you started work as a single woman with no dependents, got married and had two kids and worked there for 5 years, you have basically given Uncle Sam a ton of money. How? Because Uncle Sam is still taxing you as a single woman. And we all know single people with no dependents are taxed the higest. I personally know woman and men who brought another $400-$800 into the house because they simply updated this form. The IRS says on its web site that we are over paying our taxes every year because of ingnorance of how this system works. So if you have had kids or gotten married it needs to be reflected on that W4 not the W2. So ask HR for a W4 so you can update it. The difference on your check will show up on the next check. Just thought I'd share.

by on Oct. 15, 2014 at 11:43 AM
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Replies (1-10):
Hannahsmommy816
by Silver Member on Oct. 15, 2014 at 11:45 AM
1 mom liked this

hubby and i got new jobs (me in feb and he starts monday) so ours are all updated!

specialwingz
by on Oct. 15, 2014 at 11:55 AM
3 moms liked this

Yes, people generally overpay taxes from their paychecks.  However, it all comes out in the wash when it comes to income tax forms.  The IRS is pissed off because they have too much work to do.  They have too much money to give back.  They want to MAKE money, not return it.  

Many people like to use it as a savings account, per se.  A yearly nest egg.  Others would rather have the money upfront.  Personally, I prefer to have more taken out so I KNOW I won't have to shell out money to the IRS every year.  

I do agree that when there is a life event such as a marriage or birth of a child, a W4 should be updated.  But, it's not detrimental, as it all works out in the end.

What people need to realize even more than what is listed on their W4 is what they are paying for homeowner insurance.  Talk about overpaying!  And there is NO RETURN on THAT money.  People generally insure their homes for the price they paid or more.  What they need to realize is that the cost of the property is in that price.  And, no matter what disaster may occur, that land isn't going ANYWHERE.  All people need to insure is the actual dwelling, the contents and the cost of replacement should a disaster occur.  The property itself does NOT need to be insured.  It doesn't have to be repurchased in the event of a disaster.

campingmomof4
by on Oct. 15, 2014 at 12:58 PM

 I had to change mine last year after my husband died. 

Akmccoy
by on Oct. 15, 2014 at 1:03 PM

True but why pay more than you should. My friends took the additional cashflow they got and paid off $23,000 in debt that would have been hanging over their heads for the next several years. They still paid proper taxes they just didnt over pay. You can utilize you own cash better thru the year than waiting on a check at tax return time. Now they are dumping the same cash into an investment account getting wholesale returns. Thats better than a tax return check any day. It's all in how you control you own cashflow. Won't end up over paying, you just pay what you owe.

Alliemad_003
by New Member on Oct. 15, 2014 at 1:15 PM
1 mom liked this
Yes. We have 3 kids and my husband claims 7 (I think... Maybe 9...) on his w4. It works out to where we get a teeny tiny refund but don't have to pay in.
SweetLuci
by Silver Member on Oct. 15, 2014 at 11:15 PM

 It's cray to let the government use your money for a year or more, with no interest. Mush better idea to use that money to pay down credit card debt or other debt now. I don't understand people saying they like using it like a saving account and then use that found money to pay off debts. There would be no need for debts, with interest if they had a little more of their own money each payday to pay needed expenses.

michiganmom116
by on Oct. 16, 2014 at 6:55 AM

Yes, we review it at least once a year.

ablackdolphin
by Silver Member on Oct. 16, 2014 at 1:05 PM
We use it as a way to save by claiming zero
ablackdolphin
by Silver Member on Oct. 16, 2014 at 1:05 PM
I never want to pay in in tax day and rather a refund
ablackdolphin
by Silver Member on Oct. 16, 2014 at 1:08 PM
Its not like it is found money. Your tax liability is your tax liability either way. You either pay now or later. AND btw if you di not pay in enough you may be subject to penalty and interest.
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