Hi,
So, I am mostly done with my taxes for 2016( USA ).
I owe the federal government about $900 and the state I live in about $250.
I know it is good to owe at the end of the year, it means I was collecting interest on my money instead of the government collecting interest on my money.
Still, I would like not to have to pony up so much in one clump again this time next year.
Based on my life I think my two choices are to ask my employer to increase my withholdings or to crank my contributions to my 401k. Is that correct? Anything I should know about these two options?
If I go the withholding route:
- can I get more withheld for the state too?
- can I increase the withholdings to only be about $900 more for the feds and about $200 for the state?
- is it just a matter of asking my employer for a form and going from 1 withholding to two?
If I go the 401k route: - would be it as simple as increasing my 401K contributions $900 over the course of 2017 to not have to pay $900 at tax time?
Thanks much for any information!
Submitted March 14, 2017 at 03:20PM by testrfg http://ift.tt/2nkFVbS
