Don't withhold more taxes than necessary, you could be missing out on valuable interest earnings. [Kiplinger]
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Comments:
My good friend Wesley Snipes told me I don't have to pay em. If his advice is as good as his movie career, then I'm gonna be rich I tells ya!
why do tax codes require withholding? That's such an asinine concept. Why can't we just take our paychecks in full and then write the IRS a check come tax time?
Or do they even require withholding?
The peanut amount of money you will gain in interest doesn't compare to the help you could get or the fun you could have with a big refund.
@IRSistherootofallevil:
You can be penalized by the IRS for under-withholding. They know a lot of people don't have the discipline to save the proper amount during the year.
@Chicago7:
If that's the way you feel, give me some your money and I'll give it back at the end of the year and keep the interest for myself. Imagine how much fun you could have with your unexpected windfall!
The reason the IRS does this is 1. People might forget about taxes and not have enough to pay them and 2. If people actually saw the size of that check and how much money they give to let the government piss away there'd be a lot more people who would "forget" to pay taxes.
Yeah, well, they kinda itemize the taxes they steal from your paycheck. So you still kinda see how big your check is.
Maybe we should penalize the IRS for overwithholding. Something like 300% APR and $2,000 sounds about appropriate.
I think if I remember the form right, if you underpay by more than 10% of the amount you owe, you get fined.
Yes, by getting a big refund at the end of the year, you are essentially giving the government an interest-free loan. Obviously, the counterpoint is that if you don't have the money throughout the year, you're less likely to spend it. But, that kind of thinking is what creates a large problem with credit cards. Simply, if you're responsible with your money, then withhold less. If you're not, withhold more, and lose 5% on it. It's your money, it should work for you.
Bonus tip: For greater savings, spend less!