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Financial Planning / Foolish 401(k)s
|Subject: Re: 401k and tax deductions||Date: 1/13/1999 2:04 PM|
|Author: Actuarystdtjk||Number: 601 of 25844|
This is an interesting theory, and I'd like to know the answer too, but I thought that the gov't took out more tax from your paycheck if you register yourself as 'Single' for your marital status.
The reason I ask is this- when I got married two years ago some co-workers suggested I keep my witholding as Single because they take out more tax that way and you stand to get a larger refund at the end of the year. I was under the impression that if you put down Married, they don't take as much tax out from your check and you could owe more at the end of the year because of that.
I heard that married people pay more in tax than single people (the "marriage penalty"), but now I'm not sure how it works with the witholding from the paycheck.
I'm not sure if I helped or hurt this question any--- sorry! But if anyone else can shed some light on this witholding I'd love to hear it too- thanks - jk
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