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Hotsauce

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Looks like you are filing just right.

Pretty close to right, although this year I only got it that low because my wife donated a lot of items to goodwill about a month before tax season. She did it to clear out space in the house, but it still helped. Otherwise, it was going to be upwards of 800 federal.

I probably need to increase my withholding slightly this year.

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Owe about $15,000.

Smartest way to have your witholdings.

Withold as little as possible and not trigger penalties. Have the additional amount direct deposited into a savings account. Earn interest all year. Pay taxes at the end of the year from the separate account.

As long as you are diligent and don't spend the extra cash (reason for separate account), you not only do not give the gov't an interest free loan, you actually earn interest on their money.

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Owe about $15,000.

Smartest way to have your witholdings.

Withold as little as possible and not trigger penalties. Have the additional amount direct deposited into a savings account. Earn interest all year. Pay taxes at the end of the year from the separate account.

As long as you are diligent and don't spend the extra cash (reason for separate account), you not only do not give the gov't an interest free loan, you actually earn interest on their money.

Wouldn't be a bad idea if we still earned 2006 interest rates. Current rates lose money due to inflation, but you'd still be losing by giving the government an interest free loan. Pick your poison.

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