Here's a Clear Example...

Let's say you expect to pay $12,000 in income taxes this year (about the amount someone making $40-$50,000 would normally pay). If you get paid once a month, your employer should withhold $1,000 from each of you 12 monthly paychecks.

 If you get paid twice a month, your employer should withhold $500 out of each of your 24 paychecks. So by year-end, they will have withheld exactly $12,000.

The number of 'Allowances' you wrote on your W-4 (a form you filled out your first day on the job) told your employer the amount to hold back from your pay, to send to "Uncle Sam" and Aunt IRiS." 

 The amount withheld during the course of the entire year, should come out to exactly what you owe in taxes. If your number of Allowances was computed accurately, at the end of the year you will owe no additional taxes, and you will get no tax refund. That's the way it should be.

But YOU Can Put Extra Cash in Your Pocket Starting NOW!

Let's say that your home-based business will help you qualify for new tax deductions, BIG new tax deductions! Let's say you compute that these new deductions will slash your taxes by 40%, for example (realistic for many people).

Guess what? Your employer should now begin withholding 40% less form each of your paychecks for taxes. Using the previous example, if you employer was withholding $1000 per month for taxes, they now should begin withholding only $600!

 What would happen to the other $400? It would show up in your paycheck, putting an extra $400 cash in your pocket per-month every month for the rest of your working life!

 Would an Extra $400/Month Help YOU Run a Successful Home-Based Business?

Imagine waking up to find a crisp $100 bill next to your alarm clock once a week. Every week!

That's what an extra $400 a month means! It's money that was being used to over-pay your taxes, but now it's extra cash in your pocket!

For most people that extra $400/month is far more than enough to pay home-business start-up costs, marketing materials, training, etc.

How to Start Taking Home Bigger Paychecks NOW1

In order to get your employer to withhold a different amount (less) from your paychecks, you simply go to your company's payroll office and revise your W-4 Form to reflect a higher number of Allowances. By law, any employee may revise their W-4 any time their tax situation changes. The more Allowances you claim, the less money withheld from your pay.

It is important to accurately determine the total value of the new tax deductions you will qualify for. Your payroll office will need this number in order to determine the correct number of Allowances you should put on your revised W-4

Your never want to end up owing the IRS a lot of money at the end of the year, nor do you want to overpay taxes all year just to get a big refund -- after letting Uncle Sam use your money all year, for free!

Your should always have a home-business tax professional work with you, and to review your W-4 calculations at least twice a year.