Another reason taht people can get big refunds is because of EIC. Sure you can get that in advance, but it's only about 1/3 of what you will get at tax time.
I Personally claim single 0 on my W-4 form, but that's just me. I've never had just one job during the year, and I'm expecting self employment income, so I want myself covered.
A lot of these financial gurus say things in very black and white terms (especially when it comes to this issue). I always told my clients 'there's no right or wrong way to do it (unless you're hit with penalties), it's all a matter of personal preference"
I've also seen clients who claim way higher on their w-4 only to owe Uncle Sam 5 figures.
|