Tax withholding question

[LindaG4458]

I want to break even. My best year was a $18 refund. This year, because of selling my annuity and the associated gain, we owed just over $1500. Already did a trial for 2009 and it looks good for a small refund/owed amount.

 

[seashoreCM]

This one takes a little math and a little patience. Way back when, when I got a big refund, I would add more allowances to the W-4 for the next year resulting in less withholding anyway, even if the calculations provided did not say so.

I say "way back when" because nowadays I usually file for an extension of time and the penalties are greater if not enough tax was paid in for this situation.

Disney hints: http://www.cockam.com/disney.htm

 

[manning]

I don't care about getting extra in my pay each week, I don't mind letting the government use my money for 12 months- I still prefer to get 6000-7000+ back in Feb each year to pay off summer camp, vacations we take in the summer etc....

Earn interest on it and you may get an extra vacation out of it.

Also, don't they hit you with a penalty if you over withhold??

 

[manning]

Isn't that just like putting money in the bank these days?

If I even come out ahead a little bit, I'll take it!! With that attitude I have been debt free for years.

 

[bicker]

Also, don't they hit you with a penalty if you over withhold??

No; only if you under-withhold.

 

[mjkacmom]

We're getting $8000 back - it kills DH, a financial planner, but even though it's interest-free, after the holiday bills, it's nice to get a big check.

 

[manning]

No; only if you under-withhold.

I thought so, I have an elderly relative who insists you will get penalized. I can't find anything and I tell him I can't see why they would do it as the govenment keeps your money interest free.