I never plan for a refund and have always raised my withholdings by 1 if I get one. I was looking for that sweet spot where I don’t get a refund and only have to pay a small amount.
I moved my 401(k) to a Roth and got married this year. On top of that, with all the crap going on in DC, the wife and I are preparing for a perfect storm of taxmageddon. I’m preparing for a tax bill well in excess of $10,000.
WE always claim 9 .... and save enough to be able to pay what we might owe....NO WAY is the government going to use OUR money during the year...
EVERYONE should up their deductions to 9....
I do our taxes, and I don’t want Uncle Sam holding my money for a year, so we never get a refund. In fact, we pay withholding, but also I pay in a quarterly Estimated Income form, so I dole out (what I know we’ll owe at the end of the year) slowly to the gov’t., 4 times a year.
What does it get me in the end, nothing more than the satisfaction that they didn’t get our money ahead of schedule. Used to be some advantage to it when interest rates on savings were higher, but no advantage to it now that interest rates are so low...just satisfaction in knowing it’s in our possession until I absolutely have to pay :)
P.S. I pay it in quarterly to avoid penalties for not having paid in enough during the year.
They may go after 401K’s AND IRA’s!!