Originally posted by Jasper7821
View Post
It all depends on how much you withhold. If you are sure your credit will cover your tax liability then reduce your federal tax withholding. That way you have the money now instead of having to wait. If you don't understand the difference between a refund and a tax credit then consult a tax professional..That way you will avoid a big surprise in the event I have misunderstanding of your tax situation. I am not a tax professional nor do I have all the facts. All I can help you with is the concept of a tax credit that reduces your liability.
I will try to explain the concept of withholding. When you do witholding it is like putting money in a bucket. In this case the IRS has the bucket with your name and social security number on it. They keep the money in the bucket until you file your taxes and figure out how much you owe. If you owe anything for taxes when they get your return, they take enough money out of the bucket to pay the taxes you owe and give you the rest as a refund. You are required to put some money in the bucket but you get to decide how much
Comment