Article Categories
» Arts & Entertainment
» Automotive
» Business
» Careers & Jobs
» Education & Reference
» Finance
» Food & Drink
» Health & Fitness
» Home & Family
» Internet & Online Businesses
» Miscellaneous
» Self Improvement
» Shopping
» Society & News
» Sports & Recreation
» Technology
» Travel & Leisure
» Writing & Speaking

  Listed Article

  Category: Articles » Business » Article
 

Outsmarting FICA




By Adam Smith

In a world where the vast majority of millionaires are made just pennies and dollars at a time, controlling and managing your money is paramount to establishing financial freedom. Understanding FICA inside and out is important to those that are financially driven. As you probably know FICA refers to the social security and medicare taxes that the government collects from each paycheck. Millions of Americans are overpaying these FICA taxes each year. Although it remains true that you will receive a refund on these overpayments when you file your tax returns there remains an opportunity cost associated with these overpayments. By definition an opportunity cost is the cost of the most valuable foregone alternative.

In this FICA tax scenario let's suppose you overpay by $300. Eventually you will be refunded this money but for a period of time the government has your $300 in its possession. Since this money is in the possession of the government they are able to make interest on your hard earned money. The cost you incur by overpaying the government is the amount of interest you could have made on this money in the given time period. Though the interest that could be earned on $300 in a short period of time is nominal at best, it is the principle that holds the most importance. Those that enjoy financial well-being maintain control of their own money and put it to effective utilization.

Allowing the government to collect more than its fair share of FICA taxes on your paycheck is not an effective use of your own money. There are at least a hundred better alternatives to using your money than overpaying the government on FICA taxes and letting this excess sit in their coffers until you file your tax returns. Here are just few ways to make better use of your own money and perhaps help you become a millionaire.

Top 3 Alternatives to Overpaying FICA Taxes

1. Hide the Money – Put the money under your mattress. At a bare minimum having free access to your own money is 10 times better than anxiously awaiting your tax return so you can have what is rightfully yours. If you are going to give up access to your money for a period of time you should expect something in return.

2. Save the Money – By save we mean put the money in a savings account in the bank so you are at least earning a low interest yield on your idle money. In addition to this small interest yield, a savings account allows you free and easy access to your money.

3. Invest the Money - If you don't require easy access to your money and you want to begin a monthly investment plan consider investing in mutual funds. There are many plans that will allow you to invest just a few dollars a month and offer higher yields than any savings account.

To learn more about FICA and what forms of income are subject to this tax feel free to visit TurboTax.com, which offers a wealth of insight and information regarding income subject to FICA. And remember to use your money wisely as you establish your financial freedom.
 
 
About the Author

Adam Smith is an informational author for 10X Marketing. You can learn more about other legal issues, like how depreciation is calculated or what an eviction is by visiting the OneMinuteMillionaire.com site.

Article Source: http://www.simplysearch4it.com/article/18414.html
 
If you wish to add the above article to your website or newsletters then please include the "Article Source: http://www.simplysearch4it.com/article/18414.html" as shown above and make it hyperlinked.



  Some other articles by Adam Smith
Spending the Millionaire Cash Flow
Are you sure you want to be rich? I mean really rich? Like the kind of rich where you have so ...

The One Great Way to Make Money
Is there one great way to make money? The simple answer is no. In fact there are a variety of great ways to make money. Just ask ...

Robert Allen's Investment Property
With The One Minute Millionaire, Robert Allen introduced to the world the enlightened way to accumulate millions of dollars. The book ...

Eviction Explained
Have you ever been evicted? If you have, then you are probably all too familiar with the eviction process and the rights that both the tenant and the landlord retain throughout the eviction process. Both the ...

Creating an Interactive Map
What is the real problem with charts and maps on the web? If you are like me you come across them all the time, but most of these charts and ...

Getting to Know Your Land Contract
In a real estate broker business, almost every thing revolves around land. Obviously it is hard to run a business centered around land without knowing where ...

  
  Recent Articles
Record Management
by Ismael D. Tabije

Treasure Hunts
by John Tarr

What to Look for in Choosing IP Surveillance Software
by amit

Giving Your Business a Vision Others Can Envision
by Yvonne Weld

Productivity and Production Management
by Ismael D. Tabije

FDA Registration of Food Facilities
by Russell K. Statman

Why Businesses Today Fail - Part 1 Customer Service
by Jeffrey Solochek

Utilizing a Virtual Assistant is Just Good Business Sense
by Yvonne Weld

The Quest For An Auto Dealer
by Ashley Daniels

The Importance of Coaching
by Ashley Daniels

Finding The Right Business Investment
by Jason Sands

Commercial Flooring NY gives your office a professional look
by Stephen robins

Can't connect to database