Your tax withholding strategy

[DaFace]

Just a poll for random discussion now that tax season is rolling around again...

[Omaha]

Originally Posted by Scorp

I typically owe $2500-$3000 every year. Why let the Government earn interest on your money?

Just be careful. If you are too underwithheld you'll have to pay interest & penalty to them.

[alnorth]

Originally Posted by Omaha

Just be careful. If you are too underwithheld you'll have to pay interest & penalty to them.

when in doubt, just withhold what you owed the prior year, that is a safe harbor even if you end up massively under-withheld.

[Omaha]

Originally Posted by alnorth

when in doubt, just withhold what you owed the prior year, that is a safe harbor even if you end up massively under-withheld.

110% if your taxable income is over $150K & you aren't a farmer, but yes. Not a bad idea.

[Mr. Plow]

We generally don't go out of our way to overpay, but we always do and get a decent return each year. I like getting the return because we almost always use the money on something that we've needed but didn't have the money for, or a trip, etc.

[Pestilence]

Originally Posted by Mr. Plow

We generally don't go out of our way to overpay, but we always do and get a decent return each year. I like getting the return because we almost always use the money on something that we've needed but didn't have the money for, or a trip, etc.

This.

It helps after buying a house because we can take that money and put it back into the house.

[soopamanluva]

Originally Posted by htismaqe

I try to get as close to $0 at the end of the year as possible. No refund, no bill.

My strategy

[Mr. Plow]

Originally Posted by Pestilence

This.

It helps after buying a house because we can take that money and put it back into the house.

Yup.

Let's see.....this year any return goes to finishing the basement or a damn fence for our backyard. Or a new bed.....**** we need a new bed.

[Pestilence]

Originally Posted by Mr. Plow

Yup.

Let's see.....this year any return goes to finishing the basement or a damn fence for our backyard. Or a new bed.....**** we need a new bed.

I think we're going to get hardwood floors in the kitchen and living rooms.

[Mr. Plow]

Originally Posted by Pestilence

I think we're going to get hardwood floors in the kitchen and living rooms.

Nice!

[Pestilence]

Originally Posted by Mr. Plow

Nice!

I'd like to do that and add an overhang in our backyard. We'll see though.

Last year we got close to $9000 back and that was before the whole buying a house thing.

[Mr. Plow]

Originally Posted by Pestilence

I'd like to do that and add an overhang in our backyard. We'll see though.

Last year we got close to $9000 back and that was before the whole buying a house thing.

Wow. That's a ton back. When we still had daycare, we were getting back $4,000-$6,000.

[DaKCMan AP]

Originally Posted by Pestilence

I'd like to do that and add an overhang in our backyard. We'll see though.

Last year we got close to $9000 back and that was before the whole buying a house thing.

Damn.. that's way overpaying.

[Pestilence]

Originally Posted by DaKCMan AP

Damn.. that's way overpaying.

We get a shit ton of credits.

3 kids
Day care credit
School Credit for my wife
School loan interest for myself.

[Pestilence]

Well and my wife doesn't pay state taxes....so I get to claim all of that for my state taxes.

[Fire Me Boy!]

Originally Posted by Pestilence

I'd like to do that and add an overhang in our backyard. We'll see though.

Last year we got close to $9000 back and that was before the whole buying a house thing.

That's a bit morethan we get back. Last year we were aroind $7K.