This was in the UT this morning. I realize sarcasm does not read well on a blog, so I’ll spare you all my comments (all sarcastic!).
They are seriously suggesting that all people have to do is change their with-holdings at work to pay increasing mortgage payments. This was actually in the housing section.
As a professional tax preparer, I can tell you that several clients changed their withholding during the year in order to have more take home pay to make their mortgage payments. Unfortunately, when April 15 came around, not only did they owe a staggering amount, but they incurred underpayment penalties too.
People’s tax returns tell you alot about their overall financial situation. I’ve seen some disturbing trends, I’ll share them on another post when I have the opportunity.
I don’t see the problem with the article. They are suggesting that people stop overpaying the IRS. Instead of getting that yearly refund, just decrease your withholdings. That makes sense, right?
All things in moderation. Problem is, if you use the method outlined in the article for people in SD with monster mortgages, they will be increasing their withholding/dependants to 8 or 9 (even though they have a family of 3-4) without really doing a dry run tax calculation for the coming year. Not good.
.
