Prefer to get it right...Apr 2, 2000 Write an essay on this topic.
I'm not sure about the rest of the population but when it comes to takes and withholdings, I prefer to get it right and have my money and let the IRS have their money and be done with it. I don't get to much into wanting the IRS to hold my money throughout the year for sure, but I also don't get into having to sit down and write another check to the IRS after they take 1/3 of each of my paychecks as it is for taxes.
The best scenario in my opinion is to look at what you typically are due to pay the IRS each year and make sure your withholdings are slightly above that to compensate for raises and bonuses. That way, when tax time comes around, depending on your situation, you can still receive a refund, just not as big as if you let the IRS hold your money....INTEREST FREE mind you.....
In my scenario, my company ends up holding out a little less than they should based on the standards for my tax bracket and filing status so for my Federal Taxes. Before I bought my house and automatically received tax refunds each year, I had my company hold out an extra 10 each payday for Federal and an extra 2 each payday for state. That balanced me out to where on my state taxes, I never paid or received a refund. It always came out to zero and on my Federal returns, I typically got back around 40 or so from them for overpayment.
If you have a house, you definately don't want the IRS keeping your money since having a house is almost a guarantee for getting a tax return. The interest you pay along with other deductions such as Charity and Medical make it all the better.
|Read all comments (1)|Write your own comment|