posted on Aug, 9 2007 @ 04:13 PM
I work and currently claim zero excemptions on my W4, so I get around $500 average takin out of my paycheck each month by the IRS.
Let's just say hypothetically that I can get a savings account with a 6% APY.
Would it be legal for me to change my excemptions to where the IRS doesn't take any taxes out of my paycheck so that I could pay the total of what I
owe at the end of the year?
And...instead of the IRS takin the $500 in taxes out automatically each month, I take them out myself and place the money in the savings account and
make 6% on it for the year, then when its time to do my taxes, I just pay what I owe, but atleast I made a little money in interest on it first.
I mean thats what the IRS and federal reserve is doing right? Using my money to make money in interest? I say if their gonna make money off me then I
should be able to as well.
I mean $500 per month for a yr is $6000 and if that $6000 is in an account that gets 6% then thats $360 that I would have made just by withholding my
Does this logic make sense to anyone? Is it legal? Will it work?
Ur opinions please.....