The Motley Fool Discussion Boards	Previous Page
Financial Planning / Tax Strategies
URL: https://boards.fool.com/nix-federal-witholding-22847882.aspx
Subject: Nix federal witholding?	Date: 8/5/2005 1:24 PM
Author: Polywilliams	Number: 80269 of 132160
Hello tax board. I need some input. First of all...I over-withold by not claiming my exemptions. I know it is really foolish, but: By overwitholding, I have ended up with a pile of 'savings' at tax time. This has allowed me to open and max a Roth IRA for both dw and myself the past 2 years. (the silver lining) For 2005, I expect to pay zero federal taxes. I will get back every penny that has been witheld and possibly more. To date, my fed WH is 8K which would max both RIRA's for 2005. I am now considering changing my double-you-whatever to claim my actual exemptions so that very little would be witheld for the remainder of the year. I would, in fact, automatically deposit the approximate 'savings' into an account to earn some interest on it. Perhaps an ING. Perhaps a 2005 Roth. I'm not sure. I AM sure that I have become financially responsible enough to handle such an endeavor without pissing away the difference in my paychecks. I would hope to then be able to withold appropriately for ALL of 2006 and save/invest that additional net all year...assuming I prove the discipline for the rest of '05. Obviously, I have not worked out any details. I need help thinking through this and I figure you guys are just the ticket! Thanks for any input. Polywilliams who knows full-well how stupid it is to give uncle sam an interest-free loan, but does not practice what he preaches...yet!
Copyright 1996-2021 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us