Which Form 8655 Refund 2024

Probably everybody, this is Vida Bush. Today, I'm going to talk about tax refunds and why you should not be getting one at all. When you receive a tax refund, you are essentially giving an interest-free loan to the government. While you may have heard others say this before, I want to emphasize that you really don't want to have a tax refund. In fact, ideally, you should aim to pay as much in taxes as possible without incurring a penalty from the government. Let's start by discussing the W-4 form, which is typically filled out at the beginning of your employment. This form determines the number of exemptions you will claim, which will directly impact the amount of taxes withheld from your paycheck. The more exemptions you claim, the less taxes will be withheld. If you set the exemptions perfectly, you will neither receive a tax refund nor owe any taxes. Now, let's address the misconception that some people prefer to have a large tax refund at the end of the year. The reason for this preference is that throughout the year, individuals are not able to spend that money, so when they finally receive their tax refund, it feels like a substantial sum. However, it's important to understand that throughout the year, they have actually been making payments to the government, without earning any interest on those payments. By setting the exemptions correctly, individuals can technically take that money and put it in a savings account, earning some interest on it. At the end of the year, they would end up with even more money than the tax refund. Unfortunately, many people lack the self-control to save that money and leave it in a savings account. For individuals who struggle with self-control and cannot resist spending saved money, it may be best...