Weekly News via Email
   Set as homepage | Add to favorites | Customer Service | Subscribe Now | Place an Ad | Contact Us | Sitemap Tuesday, 09.30.2014
Classifieds
News Archive
Su Mo Tu We Th Fr Sa
 1  2  3
 4  5  6  7  8  9  10
 11  12  13  14  15  16  17
 18  19  20  21  22  23  24
 25  26  27  28
Online Extras
Site Services
Around Bend
Outdoor Fun
Travel Info
Shop Local




Members Of



Poll: Today's Live Poll
Email to a friend | Print this | PDF version | Comments (0 posted) 
  Blogger |   del.icio.us |   digg |   newsvine

Feb 16,2007
Don't like paying income taxes? Make sure you don't overpay!
by Julie Casserly

Easy financial management tips for tax time and beyond

The average homeowner will get a tax refund of $4,000 to $5,000 this year. What most people don't understand is that a big number on line 72 of the 1040 income tax form means they overpaid their taxes.

"It's ironic that most people get so excited about getting their tax refunds, which really means that they've been sending too much money to the government," says Julie Murphy Casserly, the president of Chicago-based JMC Wealth Management, Inc. "The good news is that it's really easy to pay the appropriate amount of income tax, and best of all, doing so will raise your household income with every paycheck."

Simply contact your HR department, and fill out a new W-4 form, Casserly says. The rule of thumb, Casserly advises, is to increase your exemptions by one for every $1,500 you get back.

Where people go wrong, Casserly notes, is in not realizing that instructions on the W4 form don't take other deductions you may have -- such as mortgage interest write-offs and education credits. "As a result, most people underestimate their exemptions, and wind up paying more income tax then necessary," she says.

Getting ahead

Making this fix is quick and easy, but it's too late for 2006. However, there are ways to turn that refund into a real opportunity to get ahead, and also enjoy a little splurge.

"If you don't have a lot of credit card debt, I recommend that you commit half the refund to savings, and spend the other half -- because let's face it, you've been looking forward to this," says Casserly. "However, if you spend half, you should really save the other half. Open an ING Direct or eCiti Savings account, which pay some of the highest interest rates available. Or better yet, open a Roth IRA account and select age-based portfolios such as those in the Fidelity Freedom Funds family. This is a painless way to get ahead while still enjoying the reward you've been anticipating."

If you have credit card debt, split your refund in thirds, suggests Casserly, and pay down the debt in addition to the saving and spending scenarios she suggests.

Spending to save?

One reason why many family budgets fail, Casserly asserts, is that the plans are too Spartan. "You have to consider the emotion behind the money," she says. "It's important to reward yourself for good behavior -- like setting up that Roth IRA or saving a chunk of a bonus. A little gratification here and there can prevent a spending binge."

766 times read

Related news
Spend your tax refund wisely by Jason Alderman posted on Apr 13,2007

Money and You: Good debt, bad debt by Carrie_Schwab_Pomerantz posted on Feb 15,2008

Get a bigger tax refund this year by Bend Weekly News Sources posted on Feb 02,2007

Countrywide Bank offers link to IRS Form 8888 on its web site by Bend Weekly News Sources posted on Feb 09,2007

Money and You: Taking some extra credit by Carrie_Schwab_Pomerantz posted on Apr 04,2008

Did you enjoy this article? Rating: 5.00Rating: 5.00Rating: 5.00Rating: 5.00Rating: 5.00 (total 9 votes)

Market Information
Breaking News
Most Popular
Most Commented
Featured Columnist
Horoscope Guide
Aquarius Aquarius Libra Libra
Aries Aries Pisces Pisces
Cancer Cancer Sagittarius Sagittarius
Capricorn Capricorn Scorpio Scorpio
Gemini Gemini Taurus Taurus
Leo Leo Virgo Virgo
Local Attractions
Bend Visitors & Convention Bureau
Bend Visitors & Convention Bureau

Mt. Bachelor Resort
Mt. Bachelor Resort

Les Schwab Ampitheater
Les Schwab Ampitheater

Deschutes County Fairgrounds
Deschutes County
Fairgrounds

Tower Theatre
Tower Theatre

The High Desert Museum

Advertisements



Deschutes County

Google  
  Web    BendWeekly.com
© 2006 Bend Weekly News
A .Com Endeavors, Inc. Company.
All Rights Reserved. Terms under
which this service is provided to you.
Please read our Privacy Policy. Contact us.
Bend Weekly News & Event Guide Online
   Save the Net
Advertisement
External sites open in new window,
not endorsed by BendWeekly.com
Subscribe in NewsGator Online
Add to Google Add to MSN Add to My AOL
What are RSS headlines?