So I have a question regarding taxes. I was recently looking at a pay stub and noticed the big chunk of taxes that are deducted from one's check when they claim 0 Federal and 0 State. I know you get more back at the end of the year when you do your federal taxes but if you think about it, you're just losing more of the purchasing power of your money you're waiting to get at the end of the year through inflation. Am I right? So would it be wiser to claim as many dependents as you can so you can retain as much of your paycheck as possible? It's seems better to try and keep as much of your money from your paycheck as possible so you won't lose in the end with even more inflated and devalued dollars you'd be receiving at the end of the year. Would this be more of a logical thing to do? Just curious...
Thanks.
If you under-withhold by more than approximately $1k, you may owe an underwithholding penalty. Read the tax forms carefully for details. Similarly, you need sufficient withholding for your state taxes.
I have my own blog at FSK's Guide to Reality. Let me know if you like it.
One of the things that has amazed me many times in life, although perhaps it shouldn't, is people who deliberately write their forms so as to have more money withheld than the government claims. They then take their "bonus" after they file their taxes and spend it on something frivolous - meaning something they wouldn't have bought without the idea that this was "found money" and so shouldn't be spent on something as humdrum as paying the bills, buying milk for the children, and so on. Without challenging the basic assumptions, I simply suggest to them that they have less witheld, and each week deposit the difference in a special account for that purpose, which bears interest. Then at the end of the year they can still spend their "bonus" and have more left in the bank. Not one person has taken me up on this idea, instead saying "you don't understand - it's found money."
Every time, it makes me wonder why I should be a libertarian. These are the people we need to convince? At least if I was a statist, I wouldn't need to be despondant about the way the world is going, I could march happily towards disaster rather than going with trepidation. Wouldn't it be nice, in some sense, to be so blissfully unaware? To be able to spend today without knowing that the collapse is coming?
JAlanKatz:Every time, it makes me wonder why I should be a libertarian. These are the people we need to convince? At least if I was a statist, I wouldn't need to be despondant about the way the world is going, I could march happily towards disaster rather than going with trepidation. Wouldn't it be nice, in some sense, to be so blissfully unaware? To be able to spend today without knowing that the collapse is coming?
I can't understand how libertarianism doesn't fill people with a sense of purpose. I get frustrated by people who won't open their minds and hearts, but there are so many others who are willing to listen, as well as those already on board to network with.
I was despondant when I was blissfully unaware. Now, I'm a ball of lightning.
Tu ne cede malis and all that good stuff.
Good idea for an educational campaign btw. Advertise all of the ways one could use that money instead of pre-over-paying their taxes. Maybe have a calculator where people input how much they overpay per week/month/year and it would calculate returns on investment, devaluation by inflation, savings by paying off credit debt etc. Could be a killer website.
JAlanKatz: Every time, it makes me wonder why I should be a libertarian. These are the people we need to convince? At least if I was a statist, I wouldn't need to be despondant about the way the world is going, I could march happily towards disaster rather than going with trepidation. Wouldn't it be nice, in some sense, to be so blissfully unaware? To be able to spend today without knowing that the collapse is coming?
I feel the same way sometimes. It can be frustrating, trying to tell everyone around you that what they are supporting, what they are doing is just wrong, and will only hurt everyone in the end.
Market anarchist, Linux geek, aspiring Perl hacker, and student of the neo-Aristotelians, the classical individualist anarchists, and the Austrian school.