Fiction: I should claim fewer withholding allowances than necessary on my form W-4, so I receive a big tax refund every year.

Fact: Many people love getting a big tax refund at year-end, but, essentially, what they've done is given the government an interest-free loan, allowing the government to make gains on their extra dollars, instead of keeping that potential growth in their own pocket. It's important to examine your withholding closely to ensure that you aren't claiming too few or too many allowances. This decreases the likelihood of either owing taxes or getting your own cash back without interest!


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