Tax Withholding Roulette: Plan Now to Save Money for April 18

Services for Real Estate Pros with Think Glink Media

I recently heard about a man who’s been claiming “married with nine exemptions” all year. He needed the cash. He just submitted a change to single with 0 exemptions at the beginning of November to catch up. Is that a good idea? Uh….No!

Tax expert Eva Rosenberg explains why tax withholding roulette isn't such a good idea in the long run. 

Rosenberg says most companies require about ten to fifteen days to change your withholding status. The change you submit in November won’t become effective until December. Perhaps one or two payroll checks will reflect the higher withholding—not the four checks you had intended.

If you absolutely must play tax withholding roulette, submit your year-end change no later than September. That gives you nearly nine months of higher cash flow, and about three months of higher withholdings to cover your tax obligation.

To read more from Eva Rosenberg, including what you should be saving now to cover your April obligations, read her full blog at



Ilyce Glink is the author of several books, including 100 Questions Every First-Time Home Buyer Should Ask and Buy, Close, Move In!. She blogs about money and real estate at, The Equifax Personal Finance Blog and CBS Moneywatch She is Chief Content Strategist at, a community for real estate investor


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Harry F. D'Elia
Uptown Realty - Phoenix, AZ
Investor , Mentor, GRI, Radio Coach, REOs, ABR

I have seen people get burned on exemptions in the past. Great tax advice

Dec 15, 2010 09:08 AM #1
Michele Miller ~ REALTORĀ®, LMC, HSE, CHS
Keller Williams Greater Worcester - Worcester, MA
"Your Full Service Professionals"


I love your motto!

Thank you for the wonderful tax advice!

Dec 15, 2010 09:10 AM #2
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Ilyce Glink

Best-selling author, award-winning TV/radio host.
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