TBF, I sent a little extra in for my 4th qtr estimate. When I file my usual extension in April, because I expect to own more, not less. Also, if I miss my total amount by more than 10% (15% this year because of the IRS' mercy - big whoop!), then I owe the failure to file penalty...
My real point was that the dodges you hear about all of the time in the news simply aren't available to the average taxpayer, just as the original methods you mentioned all have holes in them...
I'm starting to hear this as well as more people I personally know complete their taxes. There will be a lot of tax planning meetings and phone calls to accountants made over the next six to eight months. Anyone worth their salt in money management never wants to loan the government money (interest free) for an entire year.
How much money would you really make on $1K or $2K though? Yea, more than that I agree but $2K or less is really immaterial..
After we filed last year, my accountant sent me an e-mail detailing the adjustments I needed to make on our withholdings.
It's more than what you could potentially make in interest. For example, ask a single mom who thinks she's "doing good" when she gets her $3,500 refund, but also lives paycheck to paycheck. Would she like to have another $300 in her bank account each month? By filling out a new W-4 she could have that.
Right, like I mentioned anything over $2K would probably be categorized as material to most people. In your example most people would like to have an extra $300 in their bank account each month..
I (like crimsonaudio) use as a rule of thumb the $1,000 benchmark. If after I do my tax return, I either owe less than $1,000 or am refunded less than $1,000. I've managed my taxes in an efficient manner.
True. I got just a little over $2K back this year. I may update my withholding so I pretty much break even next year..
Aye - I could take my wife and chirruns to Rosemary Beach for a month with what I'm getting back. Not exactly thrilled about it.
