Jleev6

Hi,
Just got back from my accountants and feeling a bit confused. I am a single home owner with no dependents. I currently claim single and 1. The accountant said that I can claim single 4 or 5 to have a smaller withholding each pay check.

The accountant says that if claiming single and 1 you will receive a larger return at the end of the year and many people would prefer that since the return can act like a forced saving fund for property taxes. With interest rates so low for savings accounts and CD's there is not much benefit on where the money sits.

What do you guys in a similar situation claim? Single 1 or 4? Thanks

doopstr

Go with 4. There is no point in giving the government an interest free loan. If the government defaults on its debt you can be damn sure that it will be a long time before you see your tax refund check. Bond holders and employees are at the front of the line. Tax payers are at the back. Hell, go with 5 to ensure that you have to cut them a check on April 15th.

Will Y.

This makes sense only if you have problems saving money yourself.

Dan

+3 on 4

LaCostaRacer

Go with 4 or even 5 for that matter. Uncle Sam is already getting a free ride with the low rates on treasuries- don't give him an even better deal with a no-interest loan. You can owe a fair amount before penalties kick in and the penalties are not that bad anyway. I usually wind up getting a little penalized each year and it's like $20 or so.

It's always better to owe than get a refund- just make sure you have the $ in April. With the way silver is going you could invest in that and have a decent gain come April when taxes are due.