I usually end up paying a bit, but have intentionally structured it that way. Some of my colleagues get as much as 8K back from the IRS every year. They have kids. So it leads me to wonder who actually shoulders the burden.
I figure paying a little every year is better than letting the guvmint use my money interest free all year. I’ve never understood the “Whoopee, I got my refund” mentality. Give me my money over the course of the year and I’ll take care of it myself. This year I had to pay about $1000 due to a big raise I got in September.
My yearly goal is to get enough back form the state to cover what I owe to the Feds. It has worked pretty well for the last few years. Ya, the state has some of my money interest free for a few months but the Feds get shorted any extra income and I come out even. Seems like an even trade. Next year starts to get ugly though, my oldest stops being deductible and starts college. 8^(
My wife works as an independent contractor for various hospitals in the Twin Cities. She set up a sole proprietorship this year and we apparently grossly underestimated what she was going to owe. Coupled with the fact that I boneheadedly claimed too many allowances, we ended up owing the most we’ve ever had to pay in. Here’s to better planning in 2011!! I’ll be throwing down a few pints tonight, that’s for sure.