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    1 Reply Latest reply on Jun 18, 2011 11:06 AM by LUCKIEST

    Are You Lending Money to the IRS?

    hconnections Adventurer

      Were you among the thousands of taxpayers who got a big tax refund this year? While most Americans happily accept their tax refund checks, smart taxpayers understand that refunds actually cost them money. To find out why, read more...

        • Re: Are You Lending Money to the IRS?
          LUCKIEST Guide

          Thanks for the info

          Avoid Paying More or Less Tax Than You Owe

          Claim too many withholding exemptions on the Form W-4 you file with your employer and you'll end up paying Uncle Sam when you file your taxes.


          Claim too few withholding exemptions and you'll end up lending Uncle Sam your money interest-free. That's not as bad as owing, but why give up the interest on your money and the use of that money during the year?


          If you're one of those people who use over-withholding as a type of forced savings account, there are better ways to do it, such as having the money taken out of your paycheck or bank account automatically each pay period and placed in a savings account. Sure, you won't save big bucks at password savings account rates, but small amounts here and there add up quickly. If you don't believe it, try tracking every penny you spend for a month.  I guarantee you'll be surprised (if not appalled) at how much a number of seemingly inconsequential amounts add up to.