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Withholding

All articles tagged with #withholding

personal-finance1 year ago•3 min saved

"Maximizing Tax Refunds: The Pros and Cons for Americans"

Many Americans eagerly await their tax refund, but some argue that it's better to withhold less and have more money in each paycheck for expenses or saving and investing. Others believe that having the government hold the money helps people save more. The decision depends on individual comfort and financial goals. While getting a big tax refund can be beneficial for paying down debt or saving, adjusting withholding using the IRS' tax withholding estimator and W-4 form can help manage refunds and ensure paycheck deductions are on track.

via USA TODAY|

#financial-planning #irs #personal-finance

finance2 years ago•2 min saved

"Understanding the 2024 IRS Tax Bracket Adjustments and Their Impact on Your Paycheck"

The IRS has adjusted the federal income tax brackets for 2024, increasing the earnings thresholds by about 5.4% to account for inflation. This change, along with a rise in the standard deduction, could lead to a slight increase in paychecks for some workers if their wages remain similar to the previous year. However, individuals are advised to monitor their income and adjust their paycheck withholding as necessary to avoid underpaying or overpaying taxes, especially in light of life changes that could affect tax situations.

via CNBC|

##finance #inflationadjustment

finance2 years ago•2 min saved

"Record-breaking Powerball Jackpot Soars to $900 Million, Tax Implications Revealed"

The Powerball jackpot has reached $900 million, making it the third-largest prize in the game's history. However, winners should be prepared for a significant reduction in the windfall due to taxes. Opting for the lump sum payout would result in an estimated pretax cash value of $465.1 million, while 30 years of annual payments are worth an estimated $900 million before taxes. Winners are advised to work with tax professionals, financial advisors, and estate planning attorneys to minimize their tax liability. The IRS requires a mandatory 24% withholding for winnings over $5,000, which reduces the prize by roughly $111.6 million. Additional federal and state taxes may also apply, depending on the winner's tax bracket and place of residence.

via CNBC|

#finance #jackpot #lump-sum-payout