Quote:
Originally Posted by John 070
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.
|
Lol. I have been doing this for the better part of 10 years now and have never had an issue. There is nothing stating that you MUST follow the guide for claiming your W-4 deductions. Also note, there is a section on the W-4 for "additional withholding" amount that you can use to fine tune your withholdings. It is basic accounting. If you choose to give the government an interest free loan every year, that is your business. I prefer to more actively manage my finances and reap the benefits.