[rice_classic]

Well, since we've all accepted the fact that off-topic is now the fate of this thread I'll add that there's nothing wrong with having 0 or 1 withholdings on your taxes so that you get a "return". Sure it's a free loan to the gubment but if you think about it, what's the easiest way to save money?

Answer: to never have it in the first place. Which is why auto-deduct savings accounts like a 401k are so effective in helping folks save money. So for your average Joe who doesn't have the education/time/interest to think about money it's not such a bad thing to claim 0 and then get a good return. If you think about it, it's like knowing that you're going to get hit hard financially meeting your social-economic obligations in December known as "Christmas" that getting that tax return is a good way to "refill the coffers".

Even if you set your withholdings at 8 and didn't pay any taxes up front (so you had more in your paycheck), most folks would then budget for that amount instead and get hit again come tax time (I think of it getting double hit, since I view Christmas as a Social-Tax). I know this is "illogical" but Behavioral Economics proves that most folks don't approach finances "logically", in fact our economy kind of depends on that fact. Also, most places to stash excess money (aka savings) aren't paying much interest anyway... Heck, my Credit Union pays something like .6%.. Ugh.


Edit: perhaps we should start a tax/economics thread in the off-topic section since it is that time of year?