20 one min. tips! incl. raise # of dependants so not interest free loan to gov.

4 Replies

Found a good personal finance tip,

raise the # of dependants on your income tax to large more dependants than you have is legal to do, and do so,

so you do not have ANY refund coming to you per year/so are not giving the government an interest free loan per year or at any one time.

This is proper financial management and should not have to be making LARGE funds to do this but a good tip.

Found this good tip, in a one min. video series of 20 personal finance tips,

at vimeo.com/banktv

"BANK TV have 20 videos, a 1 min. video series of 20 different bank and personal finance videos/tips. Tips on how to save money on banking and do better banking"

so, some good personal finance tips as well

I didn't check out your video and I'm not wholly sure you're supposed to put links in your title. I will say that I cringe when I hear people talk about getting their check from the government after taxes. I'll never understand why people think the government is giving them money. It beyond puzzles me. Even as a working youth, I was claiming dependents so I would get more of the money I earned in my paycheck. I'd much rather me use their money tax free and pay into taxes than them use my money and then give it back to me with no interest. The taxes deducted from your paycheck shouldn't be a savings plan. A dollar bill is an employee who will work 24-7 without asking for a break, getting sick, or needing Obamacare. 

@Brian Serowik @Aaron Mazzrillo

Guys, it's important to use the correct terminology. It is highly illegal to claim more "dependents" than you have. You must provide over one half of the support for each dependent you claim and you must provide their SSN.

What both of you are referring to is "Withholding Allowances" on your W4. Increasing your allowances is perfectly legal. The more allowances you claim, the less you will have withheld from each paycheck. So if you received a large refund last year, you will want to claim another one or two allowances which will increase your monthly paycheck and decrease the amount refunded to you at the end of the year.

Generally you can claim up to 9 allowances without the IRS painting a target on your back.

It's essentially a forced savings plan.  People like the feeling of getting "free" money even if it's not really free.  It's their own money. But, the main difference is that someone else is doing the work for them, rather than them taking the extra money from the paycheck and putting it into an interest-bearing savings account.

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