Temporarily Adjusting Tax Withholding Puts Extra Money In Your Pocket

by GuestPoster on June 10, 2010

When your expenses are becoming greater than your income, you may look to some drastic measures to get the extra cash that you need.  Before running out and getting a fast cash advance, or selling off your prized possessions, consider adjusting the amount of money that you pay to the government from each check.  In a pinch, this can put a lot of money into your account without any work on your part.  In this post I want to show you how to do it, and the risks that come with having the extra money.

If you’ve been at your current job for a while, you probably don’t remember filling out your tax information when you first started.  It’s a part of every job’s new hire paperwork.  In the US, you filled out form W-4 that told the government how much of each check you want withheld for taxes based on your dependents and marital situation.  You can adjust that information at any time you wish.  In order to do this you’ll probably need to talk to your HR department, or whoever it is that does payroll for your company.  They’ll be able to give you the necessary paperwork and send it off for you.  It’s actually very easy to do this.

The problems that come with this can be serious though.  You’re going to get a much larger paycheck than you normally do, and if you get used to having that extra money you may not want to adjust it back!  Should you skip the part of changing your withholding back to what it was, you are going to get screwed when it’s time to pay your taxes next year.

Many people use this technique to make extra money for Christmas since they’ve already paid enough taxes throughout the year leading up that it won’t have much effect.  At the first of the year they will fill out the paperwork to return their withholding to what it was before.

Out of all of the different ways to earn extra money quickly, this is definitely one of the easiest.  The risks involved with not adjusting it back are high, but if you are responsible this is a great way to put some extra cash in your pocket!

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