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February 21, 2007


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Don't try to 'game the system' by under-withholding such that you owe the government at tax time. Although it's tempting to think that you can deposit the money that you think you're going to owe them and earn even more interest, you can be penalized for under-withholding. (Not to mention the risk of possibly not having the money you owe them at tax time!)

The sensible strategy for most people is to try to be tax-neutral (nothing owed, nothing refunded) come April 15th.

do you know of any calculators that will approximate the difference from withholdings, like the difference to your salary and typical tax return for, claiming 0 and claiming 1?

I don't. Does anyone?

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