1. Its my money to begin with! I didnt claim enough allowances on my W4, which really means I let the government borrow my precious dollars (interest-free, of course) until now.
2. I want to save my money my way. People argue that the tax refund is a nice forced saving mechanism. But again, while I am saving, my dollars arent working for me, so they arent collecting any interest as they would in say, a high-yield savings account.
3. There are far better ways to spend that money than lending it to Uncle Sam. Whether its contributing to one of my long-term savings goal (like a vacation with the girls) or donating to a charity, some financial advisors say that for every additional (and legitimate) allowance I claim on my W4, Ill get between $25 to $90 more in my monthly paycheck.
But it turns out that the IRS is and isnt trying to scam me. Check out their withholding calculator
This way you can try to get it just rightdont have too much or too little taken out (because then youll owe them money next year at tax time). And now is definitely the best time to do it. Take a look at the taxes you just filed and if next year is going to be much of the same (ie. You arent expecting any big raises or Aunt Nanas inheritance) you can make accurate guesses as to the taxes that will be withheld in 2008. I want more of my money now, not later.