Re: Tax Question (Withholding vs. Annual Return)
Posted by:
Bill.N.
()
Date: January 24, 2012 09:29PM
Forced savings. These are people who probably would just blow the money if they were getting it at a rate of $100 per month, but if they get a $1,200 refund at the end of the year they will actually spend it on something useful, or at least memorable.
Also there are some out there who just don't like the idea of having to pay Uncle Sam on April 15, or who won't have the money to pay their taxes. By setting themselves up to get a refund they won't have this problem.