It's the worst part of the year if you are disorganized and another day in paradise for the anal retentive -- tax time. Do you file your own taxes or over pay a data entry clerk to do it for you? Do you like getting a big return or having more money in your paychecks throughout the year?
These are questions of preference, but if you like a big return Uncle Sam is earning interest on your money instead of you.
Here's the logic: let's say your allowances on your W4 are 1 for federal and 1 for state. You will notice you pay alot in taxes per check. If you increase your allowances, you will keep more of your check, but owe more on your taxes when you file.
At the end of the day, it's a question of preference, would you rather get a check from the government after you file and the government earns money on the interest, or write one when you file and you keep the interest earned from that money.
For us, our tax situation doesn't change much year to year so we know what we will know; so we choose to keep as much of it as we can and get a small return or write a small check.
How do you like to file - expect a big return or keep most of it throughout the year and maybe write a small check?
At the end of the day, it's a question of preference, would you rather get a check from the government after you file and the government earns money on the interest, or write one when you file and you keep the interest earned from that money.
For us, our tax situation doesn't change much year to year so we know what we will know; so we choose to keep as much of it as we can and get a small return or write a small check.
How do you like to file - expect a big return or keep most of it throughout the year and maybe write a small check?
I tend to get a big windfall....but I consider it spring break....
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