You can do this but there are risks and problems associated with this plan. First off you can't wait until april 15 and pay the whole amount. The IRS requires that you pay as you go which means that if you under withhold you will need to send in payments quarterly which cuts in to the advantage you are trying to gain. If you fail to pay quarterly in sufficient amounts you will be required to file form 2210 Underpayment of income taxes wherein a penalty is levied and is calculated much like interest with the going rate about 9% I think. Further if you indicate 10 or more deductions on your W-4 your employer is required to notify the IRS. The IRS may or may not get in touch with you. But if they do, be prepared to explain why you need 10 deductions. Overall I don't think it's worth it. The most efficient approach is to adjust your withholding so that at the end of the year you will have paid an amount equal to your total tax bill for the previous year. Since your salary probably has gone up over the previous year your total tax bill for the curent year is higher and you will need to write a check on 4/15. Do this every year.Joe Varga
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