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Income can be a confusing topic. How much do I actually make? How much tax do I need to pay? How much am I supposed to claim on my W-4? What are the employer benefits my company offers?

Oftentimes confusion on these subjects can mean that you lose out on free money or worse, lose money. For example, I was leaving a company and had set aside money for a commuter benefit plan every paycheck. When I left the company, I was very close to actually giving up hundreds of dollars from that plan. Instead, I ended up putting the money into future public transit, which allowed me to not forfeit money.

It’s interesting how many ways there are to actually make income. For example, there are apps that pay you real money and there are even game apps to win real money.

So, what are other ways that you could boost your income today?, Here are four potential ways that you may be leaving money on the table.

1) Claiming too little on your W-4 tax form

Many individuals claim a 0 on the W-4, knowing that the benefit in the end is they will receive a much needed check from the IRS. Some people depend on this amount to pay off high interest credit cards or other forms of debt.

One of the reasons people do this is they do not trust their own ability to save throughout the year. The problem is that they could be using that money more efficiently throughout the year. For example, the money could be used to pay off high interest credit cards or deposited into a high yield savings account. Additionally, it is very important to understand how much money to put into a savings account, so researching how to calculate savings rate will help you save for your future.

Here’s what I would do: Find a free withholding calculator to get a baseline of what you should claim. After that, increase the W-4 amount to an amount where you won’t receive or owe money during tax season.

When you receive more money from your paycheck, make sure to automatically deduct the amount that would have been going to your IRS refund and send it to a high yielding savings account. Many banks have interest rates of or around 2.20%. I personally use Barclays, which offers a 2.20% during the time this article was written. Don’t touch it! For instance, let’s say you would have potentially received a check from the IRS for $8,000. This amounts to an additional $153.84 per paycheck for a 52 week pay period.

If you have no debt: You can have your employer automatically deduct the $153.84 and sent to a high yielding savings account. After 1 year, you would have accumulated over $100 in interest. If you have debt: You can use the additional $153.84 per paycheck to pay off high interest credit cards of 30% APR. Therefore, you would be able to save even more.

2) Not Taking Advantage of a 401k Match

This can literally be free money. Although, many people will not do this because they do not want to lock away funds into an account. They recognize they will incur penalties if they retrieve the money early.

However, not everyone does the calculations which show that they would receive more money even with the early withdrawal penalty than they would if they didn’t invest in a 401k in the first place.

Here’s an example: Your company provides a 100% match up to 5% match on your gross salary. Your gross salary is $50,000 per year. For a year, your company would provide $2,500 if you provide $2,500 (ie. would match your $2,500, 5% of $50,000). I won’t get into the specifics of tax liability, but let’s say you leave the company and need to withdraw the $5,000. Well, there is a 10% penalty for early withdrawal, so you would pay $500, but your net amount is still $2,000 ($2,500 – $500).

3) Getting Too Much Healthcare

Healthcare is expensive.

When both spouses work and the employer provides medical insurance, there could be double coverage. The important thing to ask yourself is whether you need double coverage. If you don’t, you should consider calculating the costs of each healthcare plan to determine which is best for you.

On the other hand, it may make more sense for each spouse to have his/her own plan from their employer if the employer covers most of the employee’s healthcare cost and not the spouse’s healthcare costs.

4) Not taking advantage of a 15% company Employee Stock Purchase Plan

Many publicly traded companies provide an Employee Stock Purchase Plan (ESPPs), which allows you to purchase your employer’s stock, usually at a discount of up to 15%.

For example, your company allows you to buy the $100 share at $85 and you are able to sell that share at $100, if the stock retains value. Thus, you would receive $15 in profit upon sale. If you sell the stock today, you will still see a free money benefit from taking advantage of this plan.

What’s Next?

In conclusion, there are many opportunities where you could be leaving free money on the table with your employer, so it is a good idea to look at your employer’s benefit plan to see whether any of these options exist for you. Additionally to preventing from leaving free money,  it is important to build a great financial plan with an online financial planner.

In this article, we focused on simple ways you may be leaving money on the table. If you’re in debt, we wrote at article titled, 5 Practical Steps to Debt Freedom, if you’d like specific insight how we use a simple step based method to help people get out of debt.

Post Author: Ben Tejes

Ben Tejes is a co-founder and CEO of Ascend Finance. Before Ascend, Ben held various executive roles at personal finance companies. Ben specializes in Chapter 13 Bankruptcy, Debt Settlement, Chapter 7 Bankruptcy and debt payoff methods. In his free time, Ben enjoys spending time going on adventures with his wife and three young daughters.