1. It’s your Money! How to make your tax refund work for you!

2. How much are you paying in Taxes?  How much are you getting in a refund?  How long are you waiting for your money?  What do you plan to do with your refund?  What would you do with extra money in EVERY paycheck?

3. How much are you paying in Taxes?  How much are you getting in a refund?  How long are you waiting for your money?  What do you plan to do with your refund?  What would you do with extra money in EVERY paycheck?

4. What is in your BOX M/S and EX?

5. What do those mean?

6. Single and Married Rates vary greatly

7. How many allowances/exemptions can I have?  According to IRS rules, you can claim up to 9 exemptions on your W-4  The general recommendation is to claim 1 for each non-wage earning person in your household  Single persons can not claim Married  But should claim each dependent child and file head of household if eligible

8. Is there really that big a difference? S/0M/2ExemptionsE4 OVER 4 2351.40 Base Pay 179.88 FICA + Medicare 28496FITW 1887.522075.52Net PayGain $188/mo$2256/yr

9. “It doesn’t matter, because I just get it back at the end of the year anyway.”  Why getting a refund is BAD  Inflation  Real inflation 8-12%  Interest on debt  Average family pays $1044 a year in credit card interest  Underfunded savings  Increases debt for unforeseen expenses  $$$ is not working for you  $$$$ invested will earn interest and over time add up

10. What is your refund costing you?  Inflation and Debt interest reduces the true value of a $2000 refund by $644  If that $2000 was contributed to a Roth Account  Your “refund” amount would increase to $2151 in the first year

11. How do I update MYPAY?  You can change Federal and State Tax withholdings on MYPAY up to 4 times a year  To calculate how much to adjust:  Our Example Paid $284 per month in 2015 2015 REFUND = $2400/12 = $200 PER MONTH reduction  Check the Tax Table for the amount closest to $84 for $2351 in Monthly Pay

12. Find out what your new rate should be. M/2, S/4???

13. We know this is confusing Yes, We will help!

15. You are just a few clicks away from meeting your financial goals!

16. Want to check your math? Use the online calculator! Be sure to open it in a new tab!

17. Almost done…

18. How to use the increase in your paycheck to the fullest  Pay down debt  Paying an extra $100 a month on a $2000 balance reduces the pay off time from 32 to 12 months  Emergency Savings  Build a back up fund to avoid high interest  Save for a big ticket item  Furniture, Travel, Vehicle  Invest  IRA, ROTH, other investment products

19. Investing your tax refund can make you a Millionaire! How ??? If you are 25 years old, Allot $166/month into a ROTH for 20 years, then STOP! Wait until you’re 75. Done!

20. ROTH or TSP  Most military families are in the 10-15% tax bracket  Would have to contribute $1 to TSP to save 10 – 15 cents on your taxes  Those TSP savings and interest growth are taxed at the higher rate when withdrawn in retirement  ROTH funds grow tax free and have more flexible withdrawal options  Buying a house  Paying for college  Pay for substantial medical bills

21. Haven’t Filed Yet?  Make sure you file to get your refund  There is no IRS penalty for filing late if you are OWED money, other than not HAVING your money!  Free filing options  VITA on Base (VITA = Volunteer Income Tax Assistance)  Military One Source – online  Accuracy counts  Double check Social Security numbers and Legal Name spellings on ALL forms  Use the correct status  Single, Married, Head of Household  Know who is claiming which child this year

22. What can I deduct if I don’t Itemize?

23. Tax Credits count more!

24. Could it be good to OWE?  Saver’s Credit is ONLY available to bring a balance to ZERO  Up to $2000  Average use is only $205  2015- Married couples filing jointly with incomes up to 61,000; - Heads of Household with incomes up to $45,750; and - Married individuals filing separately and singles with incomes up $30,500

25. Check your EIC qualification

26. Higher Income Issues  How can I reduce my taxes if I Itemize?  Only if you have more than $12,400 in deductions (married)  Mortgage Interest, Property Taxes are the most common  Medical Spending Accounts  Child Care Spending Accounts  Charitable Contributions- Cash or goods  Volunteer Expenses  How can I reduce my taxes if I don’t?  Non-Working Spouse IRA  Up to $5,500 reduction of Taxable income  Open by April 15, 2015

27. What’s Next  Set a Goal  $$$ per XXX  $$$ by XX/XX  Be realistic  Find the waste in your spending by tracking with apps  Make a plan  How will the goal be reached  Multi front approach works best  Check your Progress  Stay on track even through financial challenges  Deviating from your PLAN should be the LAST RESORT