Is there a reason that I can't do the max number of allowances on my w4, and pay no income tax during the year? I would then put the amount that you are normally supposed to withhold every pay check into a savings account or CD.
The reasons being: I would get a little interest on the money throughout the year, improve my cash flow throughout the year if I ever needed a little more for some reason, and not let the government hold on to my money throughout the year.
Please don't tell me I shouldn't do this because I might not have enough at the end of the year. I have plenty of self-control to execute this if it is possible.
Just want to know if I can do this and not get any sort of penalty? Furthermore, could I file an extension every year and push this off till October without paying any penalties?
Was thinking I could do this with my property taxes and HOA dues as well, and have tens of thousands gaining interest throughout the year.