Poll of the Day > Claiming no one on W-4 form and getting refund later versus.....

(+) Yeah! (+)

....claiming yourself and family and hoping to owe nothing during tax season? I've heard plenty of time folks suggesting one shouldn't allow themselves to be over taxed and lend interest free money to the government by claiming nothing.

Depending on how responsible and discipline one is, for some folks I can see having that buffer of being over taxed and getting a refund later useful in ensuring they at least won't owe anything later. Some folks, like some of my friends, probably see that refund as "free" money and something to treat themselves with. I tend to use that refund for Christmas bills, hah!

Personally I only get on average $1,000 to $1,200 in refund each year and already regularly put in money into my mutual fund and Roth IRA accounts. Depending on the changes to the rate of interest, that $1,000 to $1,200 may or may not yield much. I recall some PotDers get several thousands in refund each year from various claims and deductions.

What is your usual stance and approach when it comes to the withholding on your paychecks?

Comments are appreciated,

Thank you
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I get as close to 0 as possible. Though I recently got into some residual income stuff so now I'm probably gonna end up paying. We'll see in a month or so.
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I'd say don't shy from claiming 0 because of what the government makes on your money. Worry about yourself first. If your spending is high and things can be tough around tax time, claiming 0 may not be a bad idea.

I'm claiming 0 simply because I indeed have no dependents. But I could claim a 1 and it wouldn't affect me any differently - I end up banking my refund as it is.
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You ideally do want a refund as close to zero as possible. A refund means you paid too much taxes and you quite literally gave the government an interest free loan on your money. Why would you do that? You should invest the money yourself and make your own interest instead of giving it freely to the government.

People who see a refund as "free money" are honestly idiots who don't understand anything about taxes. It's not free money at all. It's money that you EARNED and you just gave it away for free to the government. The government is just giving it back to you.