I put this in here since most of us from the 70's are working stiffs now. Anyway, I don't understand the logic that people are happy when they get a tax refund. I like to come out about even at worst, or better yet, pay a little. This means that I did not give the government any more than I had to all year, money that just sat idle and did nothing for me. If I have more money week to week, I can put it to work for me and earn interest, or better yet, pay cash for something because I have this extra money rather than charge something and pay interest. People say they like to pay down their credit cards with a refund. Well I say, give me more money week to week so I can pay cash, not charge a purchase, and hence pay no interest.
How do others feel about this?

I've always tried to adjust the deductions from my paycheck as close to breaking even as possible. Usually, I get a small refund. It seems most people can't grasp the concept that the overage they pay and then get back as a tax refund doesn't earn interest, as it would in a savings or other interst bearing account. The same money could also be invested in a retirement account, probably the best use of it. Personally, I avoid using credit cards whenever possible. I feel if I don't have the cash on hand, and can live without a particular purchase for a while, then I'll forgo buying it.

I've always tried to adjust the deductions from my paycheck as close to breaking even as possible. Usually, I get a small refund. It seems most people can't grasp the concept that the overage they pay and then get back as a tax refund doesn't earn interest, as it would in a savings or other interst bearing account. The same money could also be invested in a retirement account, probably the best use of it. Personally, I avoid using credit cards whenever possible. I feel if I don't have the cash on hand, and can live without a particular purchase for a while, then I'll forgo buying it.


Yep! It crazy when people are sooo happy when they get a $2000 refund, but would these people hand over $2000 to anyone and let them hang on to it for a year for nothing?? I think not, but thats what they're doing for Uncle Sam.

can someone explain the tax system in simple terms then.  Are you responsible for working out how much you pay and then get a refund or pay more at the end of the tax year?  Does everyone do that or just certain categories of workers?

can someone explain the tax system in simple terms then.  Are you responsible for working out how much you pay and then get a refund or pay more at the end of the tax year?  Does everyone do that or just certain categories of workers?

There is a standard % that your employer will withhold weekly. This will be pretty close to what you will owe. You can decrease this amount by claiming a higher number of "deductions". For a single person, you usually claim one deduction for yourself; adding one deduction for each child or spouse if married. To be sure that you do not owe at the years end, which is what many peoplle desire, you can claim zero deductions and thus increase the amount withheld. You can also have absolutely nothing withheld and write a check at years end for whatever you owe. For most people, they fall into the 27% tax bracket.  You can invest the these funds (from zero withhollding) in something to gain interest and thus decrease the amount of real funds paid in taxes.

How does what the employer deducts automatically not match what you owe?

In the UK we have various tax codes which determines the amount you earn before tax and the percentage of tax you pay. It takes into account changes for children and marriage etc.  Pretty much only self-employed people or people with unearned income (e.g.landlords) have to do tax returns regularly

How does what the employer deducts automatically not match what you owe?




The standard amount that they withhold will be pretty close to what you will owe at the end of the fiscal year, 12/31. An individual may request many different scenerios such as the couple that I mentioned. More deductions equates to less withheld and the likely hood that you will owe. You may also request any amount that you wish be taken out of each check that is over the standard amount. This will ensure that you get a refund in the amount that you have overpaid throughout the year. In the USA, the individual has complete control over his own system.

if you do not owe any taxes from last year ,you can put 'tax exempt' on your w4 at work!!stay tax exempt for about 7 months, then put it back at your regular deduction you have now...this will give you the money your supposed to get at the end of the year every two weeks!!!get your refund now(so to speak)and put that extra into a fund you choose gaining interest in your favor..it works as long as you dont owe taxes from last year!! when you file your taxes you should get a small refund or owe a few dollars depending on your income!!hope this helps anybody...yes ,its legal!!!!

if you do not owe any taxes from last year ,you can put 'tax exempt' on your w4 at work!!stay tax exempt for about 7 months, then put it back at your regular deduction you have now...this will give you the money your supposed to get at the end of the year every two weeks!!!get your refund now(so to speak)and put that extra into a fund you choose gaining interest in your favor..it works as long as you dont owe taxes from last year!! when you file your taxes you should get a small refund or owe a few dollars depending on your income!!hope this helps anybody...yes ,its legal!!!!


A co worker does something similar every year. Come mid October, he raised his deductions from 1 to 9; thus dereasing the amount withheld. He does this to put extra money in his pocket for x-mas shopping. After new year, he returns it to one deduction.

as long as everything is truthful, there is no reason for you not to get your money now rather than at the end of the year in a big check!it all depends on the persons money needs...now or later!!