Taxes, Man

Every year I enjoy moving my withholdings around a few times a year, in order to minimize federal taxes withheld. Most years I’m able to end up with a $0-100 refund, which is actually great! It means I’m getting the money back ahead of time in my paycheck, and not in one single lump sum at the end of the year after the federal government has held onto it (interest-free) for some time.

This past tax year (2018), I kept my federal withholdings at 1. I’m single, unmarried, and have the one job. This made sense, and it should have led to my withholdings being higher versus a year where I may have increased it to 2 or 3 for a short period.

Nope.

Same amount withheld (actually a hair less) this year as last. Despite keeping a solid withholding value of 1. No change in career, same one job, slight pay bump.

Makes me wonder if the stories of the Treasury department changing the withholding tables with the passage of the Tax Law was meant to favor slightly larger paychecks, and much lesser tax returns in 2019 – after the midterm elections.

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