Senator
Thinks s/he gets paid by the post
As my final calendar year winds down, I am maximizing my federal and State income tax deductions. I already pay a bunch extra so I do not have to make quarterly payments.
I increased my withholding so I will pay an extra ~$10K to the feds and an extra ~$5K to the State over what I paid last year.
I do not like giving the Government any more than I have to, but pushing income to next year via extra withholding might save a bit in taxes in the long run.
If you are on your last year, it may be something to consider. I see some people wondering of their employer will delay payments to the next year, here is a way to do it yourself.
As far as I know, I do not think there is any limit to the amount you can withhold. If you are getting a $100K bonus, withhold the whole thing if you want.
Of course, if you do OMY after this strategy, it was a failed plan.
I increased my withholding so I will pay an extra ~$10K to the feds and an extra ~$5K to the State over what I paid last year.
I do not like giving the Government any more than I have to, but pushing income to next year via extra withholding might save a bit in taxes in the long run.
If you are on your last year, it may be something to consider. I see some people wondering of their employer will delay payments to the next year, here is a way to do it yourself.
As far as I know, I do not think there is any limit to the amount you can withhold. If you are getting a $100K bonus, withhold the whole thing if you want.
Of course, if you do OMY after this strategy, it was a failed plan.