I like to over pay.... so i can get some $$$ during the new year. Its nice, because it comes after all that xmas shopping... I know it not the best technique, but it works for me bec. i hv not yet learned to manage my money and expenses very well yet. I hope to do so by reading all your posts, and getting some advice from you ladies and experts!

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We are in the middle now... We changed it so we don't get as much back as we used to, but we still get a nice chunk, and still have that little extra each check.

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Life isn't about waiting for the storm to pass~ It's about learning to dance in the Rain

Could you explain what route you took to know how much to change it to????

We usually break even, we didn't plan it that way but thats how it happens.

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DS-16
DD-13
DD-5
DS-3

I think for people that can handle money well, it is best to invest it yourself. If you can't keep away from your savings, and you really enjoy that check at the end of the year, it may be the best way to save for them. At the bracket we are in, we don't really have much taken out at all, and most of hubbys work this year has been self employment. So, we don't have much tax taken out, and still get a refund every year. I guess it must be that earned income credit. Or child tax credit.

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I have nothing to declare except my genius."
- Oscar Wilde (1854-1900) upon arriving at U.S. customs 1882

It really is best to try and come close to breaking even. We always end up getting some back from federal and owing the state but we still usually end up with a surplus. At least we did in the past.

It really depends on how you handle money and your situation. If you know you would just spend it and not save/invest during the year it probably is best to wait and get it back during tax time so you can do something useful with it.

This year I am afraid to see what ours will end up being since dh's job doesn't take out for taxes so I know we'll definitely owe. Yuck.

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Proud mommy to adorable Kinsley

MY BLOG!

I am a member of the radical group who thinks paying taxes through payroll withholding is a horrible idea. I mean, I understand why the government does it. If they didn't insist that employers withhold some money out of every paycheck, then most of the citizens wouldn't have any money to pay-up when the bill comes due at the end of the year. But that's my point - the bill isn't due until Dec 31st, with a grace period to April 15th. WHY should I pay any of it months in advance?!

If we all had to write a check on Dec 31st for the ENTIRE tax, we'd all be much more aware of how much in taxes we actually are paying. The governmental powers-that-be don't like us to be that aware.

As the system is now, some people think a tax refund is a BONUS! Heck, that's money the government shouldn't have been taking to begin with. It's not a bonus, it's MY MONEY.

When I ask some people how much they paid in taxes last year, they'll say, "About $200" or "We didn't, we got a check back." No, no, no! I'm not asking how much your refund was. I'm not asking how much you owed when you filed. I'm asking how much you paid - IN TOTAL - in taxes. Most people don't even know because they've been paying that amount through payroll withholding for so long they forget they are paying it. To make matters worse, since most people don't know how much they are paying in total taxes, they don't know what percentage of their income they are paying in taxes. How will they ever know if a 'flat tax' is a good idea? (It isn't.)

I had a girlfriend who worked as an independant contractor for a year and of course never had payroll withholding nor filed quarterly taxes. At the end of the year she was surprised by the big check she had to write - but couldn't afford because she didn't put aside part of her income. Her comment was, "Why do I have to pay so much? No one else has to pay this much!" Well, yes we DO have to pay this much but we've been making payments all year long so it doesn't feel like such a big amount.

I'm not so radical that I don't think we should pay anything in taxes. The government has to be funded somehow. However, I truly believe if there was no payroll withholding, we'd all be in better shape when it comes to saving. If we all had to set aside X-amount per paycheck so we could pay taxes annually (or even quarterly) we'd all be in the habit of saving money and would most likely save more of it. As it is now, we think we can spend every single nickle we earn - and then some.

So yes, I'd rather not get a refund. I'd rather owe a little bit at the end of the year. If I'm doing this right, I'll have the money in savings already so owing doesn't hurt a bit.

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"I've been rich and I've been poor but independently wealthy is where it is at."

I agree 100% Cookie. I'd rather pay it all every April. I can save it all year and have it working for ME instead of the government.

I totally agree It doesn't make any sense to actually be happy about a Refund - when you just lent that money out for a Yr.


BUT - I don't know how We could not get a refund??

We paid Close to * GULP * $16,000 in mortgage interest this Past yr.

We are MAXED out on our deductions and still paying the GOVT. close to $1,000 a month-

We have Buisness expenses and charitable donations Every yr that we itemize.

We have 3 kids under 18.


I would LOVE to Have the money throughout the yr.

Well... it's not that we are happy with a refund... it's just that we would be misserable at the end of the year when we found out how much we would have to pay and didn't know where to take the $$$ from. For those people who know how to save and set the money a side for taxes, GREAT!! I TRULY ENVY YOU! That is where i want to be. However, for us that need help in the financial savings department... WE ENJOY THE REFUND.

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