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<blockquote data-quote="MattM" data-source="post: 5706023" data-attributes="member: 53192">It’s absurd. A 10% (at minimum) tax break that tends to grow at 10% annually and they are somehow happy with a $1,000 tax refund thinking the government is giving them free money. Free money are these tax credits and breaks.I just realized the vast majority in America don’t know how taxes here work. I tried to get a buddy who was PT just out of college who was getting by at $19,000/year. He refused to take part in the retirement savings program. Instead he would claim zero, have an extra $30 withheld out of each paycheck, and would essentially get a $1500 tax rebate come tax time. What could’ve been was him using that extra $30 that was withheld and throw it in a 401k. By years end he would have a near $1,000 tax credit&nbsp; offsetting any liability The first guy is saving zero, getting $30 less per paycheck, but getting back about $1200 (after owing nearly $400 in taxes)Person 2 is getting more every week and also getting a $750 tax credit Never give the government free interest for a year ( withholding too much)Then again, I don’t feel the teamsters or union or ups truly mentions we even have a 401k available at ups. It’s true they don’t match but the tax breaks along with the index fund growth is free money.</blockquote>

[QUOTE="MattM, post: 5706023, member: 53192"] It’s absurd. A 10% (at minimum) tax break that tends to grow at 10% annually and they are somehow happy with a $1,000 tax refund thinking the government is giving them free money. Free money are these tax credits and breaks. I just realized the vast majority in America don’t know how taxes here work. I tried to get a buddy who was PT just out of college who was getting by at $19,000/year. He refused to take part in the retirement savings program. Instead he would claim zero, have an extra $30 withheld out of each paycheck, and would essentially get a $1500 tax rebate come tax time. What could’ve been was him using that extra $30 that was withheld and throw it in a 401k. By years end he would have a near $1,000 tax credit offsetting any liability The first guy is saving zero, getting $30 less per paycheck, but getting back about $1200 (after owing nearly $400 in taxes) Person 2 is getting more every week and also getting a $750 tax credit Never give the government free interest for a year ( withholding too much) Then again, I don’t feel the teamsters or union or ups truly mentions we even have a 401k available at ups. It’s true they don’t match but the tax breaks along with the index fund growth is free money. [/QUOTE]

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