What can I do to get more money back at tax time?

Question

I received a large buyout package from my last job. It basically was taxed as a huge paycheck! Over $40 grand they took.. I had no choice as it was taxed before I received it.

Answer 1

Have them withhold an extra $100 a week and you can get back 5,200 more or do an extra $200 and get back 10,400.
Why do you want a big refund instead of having your money all year?
To cut your tax expense a 401K plan or IRA or get more itemized deductions by doing things like buying a house.
Having children is expensive but you might get EITC and child care credits.

Answer 2

Make larger prepayments. Bad idea though. You should shoot for the lowest possible refund. If you want to save, have an allotment taken from your paycheck and put into a savings account or buy savings bonds. That way you could earn some interest on your money.

Answer 3

First of all, why would you ever want to do this??????? All you are doing is giving your money away to the Fed gov't only to get it back much later, WITHOUT INTEREST! In fact inflation eats it up. Deferral of tax is the name of the game (the exact opposite of the scheme you describe). Let the IRS come to you later asking for money, so long as you don't have to pay interest or penalties. only then have you won.

Answer 4

If you mean to pay less tax total, you can contribute to a 401K at work, or to and IRA.