Getting even with Uncle Sam

Changing your withholdings doesn't affect how much tax you owe. All it does is change the amount taken out of the paycheck. At the end of the year, your W2 income goes on your tax return and you pay tax. As long as you break even or get a refund there's no problem but be careful that you don't end up owing tax by doing this. I actually don't have a problem with income tax in general, I have problems with some of the ways money is spent, i.e. Congress/Senate getting retirement benefits for the rest of their life regardless of how long they are in office, that irritates me. anyway, just wanted to make sure you understood the whole W4 thing :)

Changing your withholding affects the amount that you receive in your check with each pay, but it doesn't affect the amount of income tax that you will owe at the end of the year. You will still owe tax on that overtime pay, whether you changed your withholding or not. I would think that you might be better off leaving it at one rate and hopefully you will get a larger return at the end of the year. The last thing that you want is to end up owing more money to the government by April 15th! Believe me, if there were any way to bend the income tax rules and pay less tax, I would be doing it, for sure.

I'm actually pretty honest with my taxes. I think it's because i don't really know how to 'stick it to uncle sam'. i don't make a lot of money and i don't have huge investments or own big ticket stuff. So I guess in the long run, they don't make much money off of me to begin with. So there, take that Uncle Sam. I have no money so go tax the rich! hey, that felt pretty good...LOL