Quote:
Originally Posted by jwzimm
One piece of advice is to review your W-4 declarations and adjust such that you do not get a refund at the end of the year. You have basically been giving the government an interest free loan over the year that they then pay you back as your refund. You should aim to have a minimal refund if not owe a small amount at the end of the year.
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It's not that complicated, let's say you have a wife and 2 kids which is normal. You could be M 0, M 1, M 2, M 3, M4. Why would you change that to M 8 so you have less withheld?
Income taxes are not rocket science. You may make 60k on your first job out of college and get a 12k bonus. that bonus will be taxed at a higher than normal rate for you and you'll thus get a refund.
I just don't buy the "no excuse for getting a refund" argument, it's weak.
Set your withholding at the right number. If you get a refund, there are circumstances that lead to it (I'll mention it again itemized deductions). Very few people have the exact circumstances year in and out.