My wife and I have always claimed 0 dependants and gotten the maximum amount taken out of our checks every week. I recently realized that in essence, we've been giving the government interest free loans for years. I decided that I would rather claim 10 dependants and withhold NO taxes. If I instead invested that money into a secure high interest savings account (such as a 4.5% savings account) I could instead reap the benefits of my earned income, and pay Uncle Sam his due January of the following year. I also wouldn't have to worry about waiting for the inept IRS to give me my refund, as it would be on hand.
Well, someone informed me that this doesn't work. They said Uncle Sam feels like he should have his portion throughout the year, not at the end. So my question would be, is there any way to LEGALLY do this? If I have to file a W-4, is there a way to possibly pay quarterly, so that I can earn interest on it as long as possible, then turn it in at the last minute?
Thanks!
2007-12-04
15:31:17
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3 answers
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asked by
Chris W
1
in
United States