Less than two-hours ago I submitted a revised W-4 form to our payroll department. My goal is to avoid being in a position where at the end of next year I am owed a refund from the federal government. As an act of civil disobedience, I am refusing to purchase health insurance. This means that I am subject to a tax/fine of 1% of my income (2% the following year, 2.5% thereafter). But the beautiful thing is that unless I am owed a tax refund, the government will never get any of that money.
The W4 is a very basic tax form that doesn’t change much year to year. Although its use is extremely simple, it’s good to know that you can indeed influence the amount of taxes withheld from your wages. It’s your money, and it’s usually better to get it as soon as you can.
Give Yourself a Raise! If you got a big tax refund last year, it could mean that you're having too much tax taken out of your paycheck every payday. Filing a new W-4 form with your employer (talk to your payroll office) will insure that you get more of your money when you earn it. Here's a calculator that will help you determine how many withholdings to claim: http://www.kiplinger.com/tool/taxes/T055-S001-tax-withholding-calculator-kiplinger/index.php
If you have children, each one of them can reduce the amount of Income Tax you owe to the U.S. Government. The child tax credit is designed to help families raising children reduce their tax burden to offset the expense of raising and caring for children. http://www.facebook.com/pages/Child-Tax-Credit-for-2013/258264294256813