For all of my working life so far, I have always claimed Single-0-0, thus, I have no exemptions whenever I receive my paycheck. I always get a refund after I file so basically, the government is the one holding my money, to which I earn no interest. Can someone explain to me if this scenario makes sense and if it would end up working out more over the long run? Scenario: If I claim exempt on my checks all year and pay no Federal Income Tax and then simply put what I would have been taxed into a high yield savings account without touching the money for a whole year, would I end up getting more money overall since all I would be paying is my exact tax liability with the leftovers being all mine? I mean, I would assume so, since the interest would be the increased difference; however, are there any caveats to claiming exempt? For example, at the end of the year, will I be somehow liable for more taxes than if I claimed 0? A risk that I know of already, at least, would be the fact that since the money is already mine, that I might get tempted to dip into that "tax fund" and, thus, cause me issues at the end of the year. Ugh, I wish I could me more concise and articulate on this matter--I hope my explanation of the scenario isn't confusing/badly worded.