Money Your tax withholding strategy

**DaKCMan AP** · 01-18-2013, 09:44 AM

Still waiting on some 1098 & 1099 forms, but I thought I was going to owe ~$50 this year but now it looks like I'll be getting a nice refund.

Didn't expect to get a tuition & fees deduction and I guess the IRS withholding calculator didn't properly adjust my taxable income due to pre-tax contributions to retirement & health accounts.

**alnorth** · 01-18-2013, 10:37 AM

Every January I reset back to the typical default withholding and don't think about it till October. In October I take a close look at what I've withheld and what I'll likely owe, then I adjust for the rest of the year.

I get the best of both worlds. The government does not get an interest-free loan, and I basically get a 3-month "bonus" during the holiday season when people sometimes need more money anyway.

Stop getting those huge refunds, give yourself a 3-month pay-raise at the end of every year instead.

View Poll Results: What's your strategy for tax withholding?
I try and over-withhold so that I get some back at tax time	41	42.71%
I try and withhold the exact amount I'll need	36	37.50%
I try and under-withhold and just make up the difference at tax time	14	14.58%
What the hell are you talking about? Strategy? I just check the boxes and see what happens.	5	5.21%
Voters: 96. You may not vote on this poll

01-18-2013, 09:44 AM	#1
DaKCMan AP Beloved & Awesome CP Celebrity Join Date: Aug 2000 Location: Florida Casino cash: $5584952	Still waiting on some 1098 & 1099 forms, but I thought I was going to owe ~$50 this year but now it looks like I'll be getting a nice refund. Didn't expect to get a tuition & fees deduction and I guess the IRS withholding calculator didn't properly adjust my taxable income due to pre-tax contributions to retirement & health accounts. __________________
Posts: 35,714

01-18-2013, 10:37 AM	#2
alnorth . Join Date: Dec 2002 Casino cash: $57156239	Every January I reset back to the typical default withholding and don't think about it till October. In October I take a close look at what I've withheld and what I'll likely owe, then I adjust for the rest of the year. I get the best of both worlds. The government does not get an interest-free loan, and I basically get a 3-month "bonus" during the holiday season when people sometimes need more money anyway. Stop getting those huge refunds, give yourself a 3-month pay-raise at the end of every year instead. __________________ how many emo kids does it take to change a lightbulb? HOW MANY?! none they just sit in the dark and cry
Posts: 36,130