Originally Posted by KLC
I can hardly go out to dinner with what I usually get back.
Then you might be doing something right.
I always claimed the most exemptions I could on my withholding so they took out less.
That money ,put in my savings account, made more interest for me than letting the government hold on to it all year for nothing.
Sure,savings accounts don't pay much of anything in interest,but it's more than what the gov pays,which is nothing.
Let's say you claim 0 exemptions on your employer withholding. They take out the most tax , making your paycheck smaller , but you get a big return when you file. Say $1000.
Instead , claim 3 exemptions on withholding and take a few extra bucks and throw it in a savings or interest bearing checking account. You may only make $10 0r $20 on interest , but that's $ more than what the gov pays you for holding/using your money over the year.