It’s hard to enough to save money, stay out of debt or pay it down, plus do the bigger things like investing when you simply don’t have enough money to go around.

Statistics show that just a couple hundred extra dollars a month could save people from bad marks on their credit, losing cars, even their homes. It’s basic math. There’s just more month than money.

Many people beat themselves up over their inability to make financial headway, not realizing that they’re set up from the beginning by not bringing home enough of their gross earnings.

The Problem

As a CPA and tax preparer of all types of returns, in last week’s podcast, I talked about how we, as business owners, have the advantage of controlling all of our money.

1:22 The financial consequences of overpaying taxes

2:30 How Withholding Works

3:55 How 1099s differ from W-2

6:05 How to get your money!

Last year I began sharing tax matters info on social media platforms. It's true. Learning how to get engagement feels like rocket science! But this week, in just minutes, I started receiving direct responses to a post about the tax code and its impact on employees’ net pay.

Here’s the post :

Guess we’ll be sharing more on that!

The net pay problem is simply this: overpayment of taxes. It starts with not properly determining at hiring the correct withholding amounts, and then not reviewing them each year. As life events happen, tax matters and employee withholdings should be reviewed along with them.

This inequity of gross earnings treatment for employees when compared to business owner ((1099) earnings is further cloaked in the celebratory marketing tone of “tax season” - like it's a good thing to finally get access to last year’s money that was involuntarily taken from you. Yes, it’s required by law, but was it really explained to you when you got hired? In most cases, not. Then, to get your money back, you spend hundreds more on tax preparers, answering intimate, personal questions about what happens in your household.

Even worse, many people never get their money back - these are the habitual non-filers who think they’re getting away with something because they never hear from the IRS. The reason? They’ve overpaid sometimes thousands of dollars, and by law, have an expiration date (three years) on how long they can claim it.

The Solution

I absolutely LOVE what I do and here's why.

Where else can a professional

  1. Identify the problem,
  2. Strategize with the client for a custom solution, and then
  3. Push the actual buttons in software to fix the situation and bring transformation?

We do that right here at The Money Doctor® and we’ve begun Step 1 in this post. ( ✅)

So let me ask you.

Now that you’ve read this and assuming you believe me are you happy with this treatment of your money, not being able to access to it for use all year?

Are you ready for steps 2 and 3? (Say “yes!”)


We need a new mindset about the refund. Let’s start seeing them for what they really are - money you weren’t able to use for necessities, but also the bigger things like investing which can earn you compound interest. Time is money. Refunds cost you both.

I get it. It’s fun to get a lump sum of cash - especially after the holidays. And to be fair, some refunds are not your earned money, but given to you by the government in the form of “credits” (earned income, child tax etc.), but I’m sure your expenses of being a parent exceeded that, so in my view, it’s just a reimbursement.

Let me give you a visual to be clearer.

Picture yourself going into a store, picking up an item, and at the register, saying, insisting even, that you pay more than what's asked. I’m almost positive they would look at you a bit confused, push back and say “Huh? Are you sure? Why?”

Well, consider me your friendly "cashier,” and that’s EXACTLY what I’m saying to you and every other employee struggling unnecessarily - forced to hope lawmakers give them an hourly pay raise. I'm going to show you have to give yourself that raise!

Believe it or not, IRS is on your side with this, and encourages you to double check and, if needed, adjust your withholding rates and amounts. They recommend this be done yearly for accuracy, so I’m including a link to the IRS website where you can access the worksheet.

NOTE: I will be continuing this discussion in a future post and specifically teaching you how to read your paystub. That’s a sure way to double check that take home pay. 😉


1. Check out the IRS Paycheck Withholding Estimator which will lead you to the W-4 mentioned in the podcast. Remember it’s your right to pay the least amount of tax.

2. If you know you have issues with some of what you read here, or would like a tax consultation with me, Book a Strategy Session so we can review your taxes. The "Money Milestone" session fee ($75) applies to any future done-for-you services.

3. If you want to send us a message about anything else, Contact Us Here..

Check the blog often for any updates and I hope you'll subscribe to the podcast. If this helped you at all, let us know in the comments below! It just helps us know what content is really useful and that we should keep discussing in future posts.

Thanks for dropping by! 😀

Make it a great day (especially for YOUR MONEY), and I'll see you in the next post!