rather earn interest wrote:
Sure, I agree that it isn't a big deal. I just don't understand why anyone would actively try not to owe at tax time. I can understand being ambivalent or preferring to owe. I can't really see the advantage of getting money back. It really doesn't make much difference, but it definitely isn't preferable.
I'm the same as you. I prefer to owe, but I don't really worry about it either way. I fill out my W-4 and then just forget about it. If I get a big refund, I change my W-4. I haven't gotten all my tax documents yet, but it looks like I'll end up owing about $2000 this year when I file. Which is right in my sweet spot.
My guess is the people that like to get money back are horrible savers. They can't afford to pay a lump at the end, and if they get money back, it's like they accidentally saved for a year. I hear that all the time from financially illiterate people. "Oh, I got $2000 back, so we can go on vacation this year." Well, if you had just withheld less, and put some money in a savings account every paycheck, you could still go on a vacation.