Hellobee Boards

@jedeve: I don't understand your comment. I don't see how overwithholding supports our government.

@locavore_mama: married filing joint

@Boogs: If only I could bring myself to leave California and its glorious weather!!!!!!

@MrsMcD: Haha I never will!

@Boogs: Neither will I!

@littlek: I think every little bit helps. People don't want to give the government an interest free loan because they would prefer to make a couple extra bucks off interest themselves. But, I think every dollar does add up, even if it doesn't end up totaling billions of dollars. Just my personal thoughts anyway.

@littlek: @Boogs: This article explains it: http://www.forbes.com/2010/05/03/how-much-government-makes-off-you-personal-finance-tax.html (although it is very anti-overwithholding).

There are other benefits to the government as well. If everyone paid *everything* on April 15, it is more likely there would be problems with compliance, than if people automatically withheld. Some people would underbudget and come up short. Withholding helps prevent that by automatically withdrawing from paychecks. It also provides the government with a steady stream of income, rather than waiting on one lump sum. That helps forecast budget projections too.

The government isn't *making* money on you, and it isn't *costing* you anything. But yes, they theoretically do come out a little ahead and you come out a little behind on what would happen if you invested and they borrowed instead. But to me, I got a $200 refund last year. I'm okay that I didn't make the $0.20 or whatever I would have off of that!

@jedeve: in theory it does "cost" you. Add a few zeroes to your refund number and if you put in say the stock market, that's real money that you aren't getting a ROI because you over withheld. Personally, I'd rather invest and support business growth. But again, let's agree to disagree since we have fundamentally different beliefs.

@jedeve: Interesting read, thanks!

We always have to pay. Hoping this year we at least won't owe anything!

We usually mentally calculate how much we 'should' be getting, but it's never spent before it arrives. Even last year when we got a significant amount back, I refused to believe it was coming until it was in our bank accounts.

We learned our lesson one year when we unknowingly changed our deductions so that we owed almost $7K. Thankfully we had the $, but we went from never thinking about what our taxes would be to constantly calculating it every time our financial situation changed.

We aim to have a zero sum. My dad writes income tax software so he knows a lot of ins and outs. We also have annoying taxes in that I've had a W2, 1099, and run my own business as well. DH only has a W2 so we play a numbers game to even out my 1099 and business owner stuff.

I don't want to owe and I don't want a huge return either. Since we're not making much due to DH being in school, every dollar gets accounted for each month so I want that in my pocket now rather than in the spring in a lump sum.