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If you mean a tax return, that means you paid too much to Uncle Sam to begin with and gave him an interest free loan for the year. Can't understand why people get so excited to get their own money back? I pay estimated quarterly taxes and always owe on April 15. It really sucks having to pay Uncle Sam 4 big ass checks a year and if everybody had to do it this way, we'd have a tax payer revolt on our hands. If you are getting a return, you are overpaying. Why? Reduce what you let the government take from your pay checks.
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If you mean a tax return, that means you paid too much to Uncle Sam to begin with and gave him an interest free loan for the year. Can't understand why people get so excited to get their own money back? I pay estimated quarterly taxes and always owe on April 15. It really sucks having to pay Uncle Sam 4 big ass checks a year and if everybody had to do it this way, we'd have a tax payer revolt on our hands. If you are getting a return, you are overpaying. Why? Reduce what you let the government take from your pay checks.

 

'cause most americans wouldn't save the extra few bucks they would get a week so having the Uncle do it works for them, and if everyone would have to pay in our tax rate would be a tad higher since the Uncle is getting a tax free loan on all the people who get money back.

 

I understand it both ways, no need to criticize

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I'm in the camp of the interest-free loan. Both my wife and I claim 0 on the W-4. Every year we get a nice fat return because that's the way we like it. Yeah I know the Gov.'s getting an interest free loan...who cares. What would I be getting? 1.5%...2%?? I'd rather have the $5K-$6K in a nice lump sum that I can throw on something. Lump sums go much farther than little piddly amounts. And yes I am saving a ton and have mutiple IRA's on top of this. I just look forward to that "untouchable, non-liquid" savings account every Feburary. It's always done great things for me in the past years.

 

That said, we're not quite sure what we'll do...definitely pay off some debt with it, maybe put some of it towards toys...dono yet.

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I'm in the camp of the interest-free loan. Both my wife and I claim 0 on the W-4. Every year we get a nice fat return because that's the way we like it. Yeah I know the Gov.'s getting an interest free loan...who cares. What would I be getting? 1.5%...2%?? I'd rather have the $5K-$6K in a nice lump sum that I can throw on something. Lump sums go much farther than little piddly amounts. And yes I am saving a ton and have mutiple IRA's on top of this. I just look forward to that "untouchable, non-liquid" savings account every Feburary. It's always done great things for me in the past years.

 

That said, we're not quite sure what we'll do...definitely pay off some debt with it, maybe put some of it towards toys...dono yet.

 

What he said

ignore him, he'll go away.
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I think of the govt taking my money like a piggy bank. Every Febuary or March, I get to crack the piggy bank open. It's better than having to write out a huge check to the IRS on money you probably already spent.
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I'm in the camp of the interest-free loan. Both my wife and I claim 0 on the W-4. Every year we get a nice fat return because that's the way we like it. Yeah I know the Gov.'s getting an interest free loan...who cares. What would I be getting? 1.5%...2%?? I'd rather have the $5K-$6K in a nice lump sum that I can throw on something. Lump sums go much farther than little piddly amounts. And yes I am saving a ton and have mutiple IRA's on top of this. I just look forward to that "untouchable, non-liquid" savings account every Feburary. It's always done great things for me in the past years.

 

That said, we're not quite sure what we'll do...definitely pay off some debt with it, maybe put some of it towards toys...dono yet.

I think unless you've run-up every one of your credit cards the main idea behind doing this is irrelevant. If you can't be disciplined enough to save this money instead of spending it every paycheck, it's not like you can be "out of money" and just naturally not spend it, someone's always offering you a line of credit.

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'cause most americans wouldn't save the extra few bucks they would get a week so having the Uncle do it works for them, and if everyone would have to pay in our tax rate would be a tad higher since the Uncle is getting a tax free loan on all the people who get money back.

 

I understand it both ways, no need to criticize

I agree. If I adjusted my witholding so that I got no refund, the extra money in my weekly check would simply disappear with nothing to show for it. I prefer getting a refund check.

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Last year I owed 25 dollars to Federal and got back $100 from State. I tried to get both as close to 0 as possible, but I'm no tax accountant for sure. This year we will most likely get a lot back, but that is because of the new house. I didn't feel like re-estimating our tax and our deduction for our mortgage is going to be huge this year. If I had to guess the return this year will be around $1500. Enough for a new deck for the house.
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I think unless you've run-up every one of your credit cards the main idea behind doing this is irrelevant. If you can't be disciplined enough to save this money instead of spending it every paycheck, it's not like you can be "out of money" and just naturally not spend it, someone's always offering you a line of credit.

 

No credit cards here buddy, just car and house. Didn't I just say I was saving a ton? Obviously I have discipline. It's just a different mentality-nothing wrong with it. I won't miss the $15 in interest I would have made on that saving throughout the year-sorry.

 

I agree. If I adjusted my witholding so that I got no refund, the extra money in my weekly check would simply disappear with nothing to show for it. I prefer getting a refund check.

 

^^Yes, this is another good reason.:)^^

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If you mean a tax return, that means you paid too much to Uncle Sam to begin with and gave him an interest free loan for the year. Can't understand why people get so excited to get their own money back? I pay estimated quarterly taxes and always owe on April 15. It really sucks having to pay Uncle Sam 4 big ass checks a year and if everybody had to do it this way, we'd have a tax payer revolt on our hands. If you are getting a return, you are overpaying. Why? Reduce what you let the government take from your pay checks.

 

 

+1 I try to come as close to 0 as possible.

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Preliminary estimates show that I'll probably end up with a 5-6k refund this year. This is mostly an AMT credit from a prior tax year. If you've never been subject to AMT, please don't give me advice on adjusting my withholding. AMT is a tricky beast.

That being said, I'll probably contribute as much of it as I can into my Roth (the max this year is 4k, but not sure I'm allowed to max out). And the rest will go into my "Miata fund". Since the XT is paid off, I'm hoping to pick up an MX-5 for summer use. Hopefully a 2006, since I really like the re-design.

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I'm in the camp of the interest-free loan. Both my wife and I claim 0 on the W-4. Every year we get a nice fat return because that's the way we like it. Yeah I know the Gov.'s getting an interest free loan...who cares. What would I be getting? 1.5%...2%?? I'd rather have the $5K-$6K in a nice lump sum that I can throw on something. Lump sums go much farther than little piddly amounts. And yes I am saving a ton and have multiple IRA's on top of this. I just look forward to that "untouchable, non-liquid" savings account every Feburary. It's always done great things for me in the past years.

 

That said, we're not quite sure what we'll do...definitely pay off some debt with it, maybe put some of it towards toys...dono yet.

 

Try 4.25% and you can do a automatic partial deposit with most companies payroll system.

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I'm in the camp of the interest-free loan. Both my wife and I claim 0 on the W-4. Every year we get a nice fat return because that's the way we like it. Yeah I know the Gov.'s getting an interest free loan...who cares. What would I be getting? 1.5%...2%?? I'd rather have the $5K-$6K in a nice lump sum that I can throw on something. Lump sums go much farther than little piddly amounts. And yes I am saving a ton and have mutiple IRA's on top of this. I just look forward to that "untouchable, non-liquid" savings account every Feburary. It's always done great things for me in the past years.

 

That said, we're not quite sure what we'll do...definitely pay off some debt with it, maybe put some of it towards toys...dono yet.

 

You are so right....not to mention you don't have to worry about having to pay Uncle Sam.

 

I have done it both ways, and if you estimate what to take out of your paycheck and you estimate wrong, you have to pay. I don't like to touch the savings account for anything. Uncle Sam gets some interest from me, but in turn I get a nice check to pay my horrible homeowners fee and increase my savings account even more!

 

-S

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Try 4.25% and you can do a automatic partial deposit with most companies payroll system.

 

Assuming you estimate right and don't have to pay Uncle Sam (because you didn't estimate right). Estimating is really tough when you have stock sales, real estate investments, etc.

 

Lets see....$4k return.....4.25% is $170.......nah not worth it! Too much frustration and worry.

 

-S

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