Are you unknowingly giving Uncle Sam thousands of dollars in interest-free loans each year? If you're like 70% of Americans who celebrate receiving a tax refund, you might be missing a crucial financial opportunity.
Tax withholding—that mysterious process where money disappears from your paycheck before it even reaches your bank account—is rarely understood. But mastering this concept could put thousands of dollars back in your pocket throughout the year instead of waiting for a refund.
Think of your tax obligation like filling a bathtub: you want it just right. Too much water (overwithholding) means you've loaned the government your money interest-free. Too little (underwithholding) means a painful bill in April. The key to perfect withholding lies in your W-4 form, which most people complete once when starting a job and promptly forget about. Major life events like marriage, having children, or buying a home should trigger a W-4 review.
We also tackle common misconceptions about bonuses. Contrary to popular belief, bonuses aren't taxed higher than regular income—they're just subject to different withholding rules. For self-employed folks and contractors, we explore the importance of quarterly payments and dedicated tax savings accounts to avoid April surprises.
Ready to stop giving Uncle Sam an interest-free loan? Listen now to learn how updating your tax withholding could be one of the simplest yet most effective financial moves you make this year. Subscribe for more financial insights that transform complicated money concepts into practical, actionable advice.
This episode's pizza and score:
Pizza Hut - https://www.pizzahut.com/deals?gclsrc=aw.ds&ds_rl=1149043&gad_source=1&gad_campaignid=122485240&gbraid=0AAAAADyJNr0l7T4I2Ob8ukhN5_aPac8wS&gclid=CjwKCAjw1ozEBhAdEiwAn9qbzaXTAPRiAcPY-mRDHHvfxLTs5MJ1xdnD_AlomiWkbro6jroX1Q5fIhoC4zQQAvD_BwE
Cooper's Score: 6.4
Corinne's Score: 8.8
From Pie's to Prosperity is an educational podcast geared towards helping you navigate life's financial obstacles, one slice at a time. Hosted by Cooper Casillas, this podcast will feature special guests, industry professionals, and topic summaries to help simplify complex financial decisions.
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This information provided is strictly for educational purposes only and does not constitute financial, investment, tax, or legal advice. Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. Ray Olson, LLC is not affiliated with Kestra IS
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