Mulligan
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- May 3, 2009
- Messages
- 9,343
Preface this by saying I have been a "Christmas in February" person who over withholds and then receive a nice state income tax refund mostly from a tax credit of staying under 85k AGI. Now that I am starting to get near that threshold I have just lowered substantially my withholdings because this refund (a 1099G) is always applied to the following years federal and thus actually increases my AGI getting me closer to the threshold.
This has got me thinking in reverse when I get to that number. It appears once I hit the crossover amount I could actually over withhold for a few years by increasing my withholdings to stay under the 85k and then counter balance the 1099G add on by increasing even more the state withholdings.
As mentioned the money does get taxed but in the year the 1099G is received and is considered income then in that year. I do not want to do anything illegal, but I have googled to see if over withholding was illegal and the search does not find anything. And if it isn't illegal I would certainly consider it. Has anyone ever adjusted or increased their withholding on income to receive tax credits?
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This has got me thinking in reverse when I get to that number. It appears once I hit the crossover amount I could actually over withhold for a few years by increasing my withholdings to stay under the 85k and then counter balance the 1099G add on by increasing even more the state withholdings.
As mentioned the money does get taxed but in the year the 1099G is received and is considered income then in that year. I do not want to do anything illegal, but I have googled to see if over withholding was illegal and the search does not find anything. And if it isn't illegal I would certainly consider it. Has anyone ever adjusted or increased their withholding on income to receive tax credits?
Sent from my iPad using Tapatalk