Taxes and budgeting are entwined: withholding choices, tax credits, and timing of income can materially affect monthly cash flow. For many workers, selecting the right tax-withholding on a paycheck determines how much take-home pay is actually available to budget. Some people intentionally increase withholding to avoid a tax bill, essentially using the government as a forced savings vehicle, while others lower withholding to have more monthly cash (but risk a year-end payment). Beyond withholding, tax-advantaged accounts (like retirement accounts or health savings accounts) change effective take-home pay and long-term wealth. Budgeting with tax-awareness means planning around after-tax dollars and understanding the timing of tax refunds and liabilities so those events don’t surprise your monthly plan. Another related tool is tax-loss harvesting or timing capital gains, which are higher-level strategies but also affect annual cash flow and should be considered when budgeting for major purchases. The next question tests a practical withholding-related budgeting decision many households face.