Those of you who "need" your tax refund at the end of the year....you do realize that's your money, and has been all year right? You've just been giving extra to the government with every paycheck and they've been using it -- interest free -- all year long.
It makes much more sense to figure out how much you'll owe, adjust your withholding accordingly, and put the "extra" straight into an interest-bearing account. Yes, you'll get little or no refund back at the end of the year, but you won't need it...you'll already have it! It will already have been adding up and growing through interest in your own account all year long!
If you wind up owing a little bit at the end of the year, that's even better...just pull the money out of your interest-bearing account and pay the IRS. That way, the government gave YOU an interest-free loan all year!
Bottm line...using your tax withholdings as a savings account is a really bad strategy.
It makes much more sense to figure out how much you'll owe, adjust your withholding accordingly, and put the "extra" straight into an interest-bearing account. Yes, you'll get little or no refund back at the end of the year, but you won't need it...you'll already have it! It will already have been adding up and growing through interest in your own account all year long!
If you wind up owing a little bit at the end of the year, that's even better...just pull the money out of your interest-bearing account and pay the IRS. That way, the government gave YOU an interest-free loan all year!
Bottm line...using your tax withholdings as a savings account is a really bad strategy.
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