|
We understand that it can be tricky navigating through the world of financial services. Everyone seems to have an opinion, and it can become difficult knowing what to believe. We've created this series, "Financial Fact vs. Fiction," as a way to present and debunk some of the most popular financial myths.
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!
Last Updated: 07/21/2010
These materials have been provided for general informational purposes only and do not constitute either tax or legal advice. For additional information, please consult your tax professional.
View the Fact vs. Fiction Archive
|
