Comfortable-Policy70 t1_j52sgtb wrote on January 20, 2023 at 12:14 AM

This is common, frequently posted tip but the most important point is rarely stressed enough: if you update your W9 so that you owe a small amount, you must have a savings or investment account that pays interest and you must save at least as much as you would pay in the excess withholding. For some people, the extra money every paycheck makes sense. For others, the forced and inaccessible "savings" that a refund provides is better.

Send_Your_Noods_plz t1_j52x954 wrote on January 20, 2023 at 12:48 AM

Yeah, 50 extra on your paycheck means you can go out 1 night. Most people are not taking that money and investing for essentially pennies over the course of a year. If you make enough that it's not just pennies of interest this makes sense but for a lot of people out there were talking a hundred or two at best

Jaded_Prompt_15 t1_j5308d7 wrote on January 20, 2023 at 1:09 AM

You can even claim "exempt" from withholdings for social security...

Every year, lots of idiots find that out. And they assume it means they're somehow exempt from it. Like, there's just a secret opt-out that no one knows about.

So they change it, and because they think it's a secret life hack, they don't tell people they found it.

Then Social Security calls their employer, locks them at a high deduction, and give them a giant debt.

Just pay taxes as you earn money, it's not worth the hassle