Should I change my W4 to not withhold any taxes (or at least withhold as little as possible) and just pay exactly what I need at the end of the year or or should I make my W4 so I pay just enough?
I'm paying $800 in taxes on each check. Out of $3500 I take home $2700. I'm claiming 7 on my W4. I believe I'm in the 25% bracket. I live in California. I have 2 children and I'm married. I have a 401K that I contribute to.
Basically the IRS is getting an interest free loan from me. I'd like to get interest from it instead. Obvious down side is that I'd be responsible for ~20k at the end of the year so careful management is critical.
I end up owing at the end of the year anyway due to other side work so I never expect a refund.