| In a world where the vast majority of millionaires are | | | | overpaying the government on FICA taxes and letting |
| made just pennies and dollars at a time, controlling and | | | | this excess sit in their coffers until you file your tax |
| managing your money is paramount to establishing | | | | returns. Here are just few ways to make better use |
| financial freedom. Understanding FICA inside and out is | | | | of your own money and perhaps help you become a |
| important to those that are financially driven. As you | | | | millionaire. |
| probably know FICA refers to the social security and | | | | Top 3 Alternatives to Overpaying FICA Taxes |
| medicare taxes that the government collects from | | | | 1. Hide the Money - Put the money under your |
| each paycheck. Millions of Americans are overpaying | | | | mattress. At a bare minimum having free access to |
| these FICA taxes each year. Although it remains true | | | | your own money is 10 times better than anxiously |
| that you will receive a refund on these overpayments | | | | awaiting your tax return so you can have what is |
| when you file your tax returns there remains an | | | | rightfully yours. If you are going to give up access to |
| opportunity cost associated with these overpayments. | | | | your money for a period of time you should expect |
| By definition an opportunity cost is the cost of the | | | | something in return. |
| most valuable foregone alternative. | | | | 2. Save the Money - By save we mean put the |
| In this FICA tax scenario let's suppose you overpay by | | | | money in a savings account in the bank so you are at |
| $300. Eventually you will be refunded this money but | | | | least earning a low interest yield on your idle money. In |
| for a period of time the government has your $300 in | | | | addition to this small interest yield, a savings account |
| its possession. Since this money is in the possession of | | | | allows you free and easy access to your money. |
| the government they are able to make interest on | | | | 3. Invest the Money - If you don't require easy access |
| your hard earned money. The cost you incur by | | | | to your money and you want to begin a monthly |
| overpaying the government is the amount of interest | | | | investment plan consider investing in mutual funds. |
| you could have made on this money in the given time | | | | There are many plans that will allow you to invest just |
| period. Though the interest that could be earned on | | | | a few dollars a month and offer higher yields than any |
| $300 in a short period of time is nominal at best, it is | | | | savings account. |
| the principle that holds the most importance. Those | | | | To learn more about FICA and what forms of income |
| that enjoy financial well-being maintain control of their | | | | are subject to this tax feel free to visit TurboTax.com, |
| own money and put it to effective utilization. | | | | which offers a wealth of insight and information |
| Allowing the government to collect more than its fair | | | | regarding income subject to FICA. And remember to |
| share of FICA taxes on your paycheck is not an | | | | use your money wisely as you establish your financial |
| effective use of your own money. There are at least | | | | freedom. |
| a hundred better alternatives to using your money than | | | | |