I don't understand how this works. People have told me that if I don't claim myself, I'll get more money back. The gov't will be paying me more? Or is it just that my refund will be larger because they're taking more out?
2007-05-26 14:48:53 · 4 answers · asked by PlasticTrees 2 in Business & Finance ➔ Personal Finance
The refund will be more because they are taking more money out.
To me, that strategy is ridiculous. It is giving a no interest loan to the IRS. Instead, take yourself as a deduction for withholding and take out the difference every paycheck and place in an interest bearing savings account.
It has the same net affect yet you make money on your money while you are accumulating it.
You should always figure your withholding to be as close to what you will likely owe in taxes as possible.
2007-05-26 14:54:17 · answer #1 · answered by Anonymous · 2⤊ 0⤋
The fewer deductions you claim the more that will be taken out in taxes each payday. This will result in a larger refund when you file your taxes. Good Luck
2007-05-26 14:53:24 · answer #2 · answered by GUS 4 · 0⤊ 0⤋
You should claim no one on your taxes and get more back, i make good money and claimed myself last year and on the refund got only enough money to pay the cable bill.
2007-05-26 14:58:26 · answer #3 · answered by zachary l 1 · 0⤊ 1⤋
so why not join the new tea party
and let's get rid of the IRS !
support HR 25 and S25 now before Congress
2007-05-26 14:57:56 · answer #4 · answered by tom4bucs 7 · 0⤊ 1⤋