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Joined: 10/07/1999 Posts: 26709
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A few possibilities

A lot of people (more than there should be) live pretty much paycheck to paycheck with little savings. If they didn't have as much withheld, they'd probably spend more each paycheck, and be worse off.

Also, if you aren't sure of what your deductions might be in a given year, but you don't want to be surprised with a big tax bill, you might have a little more withheld than necessary as you would rather get something back as opposed to it sliding too much in the other direction and you getting hit with a big bill in April.

And of course with interest rates as low as they are, if you don't withhold enough and thus "loan" the government a couple hundred dollars for the year, how much potential interest are you really missing out on? Enough to buy one decent dinner maybe?

(In response to this post by vt_mughal)

Posted: 02/20/2019 at 8:43PM

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Current Thread:

Why do most people get so excited for a large tax refund? -- vt_mughal 02/20/2019 08:37AM

They aren't excited about that this year. ** -- Solarex 02/21/2019 04:56AM

A few possibilities -- SteveInBaltimore 02/20/2019 8:43PM

Because my wife would spend it if we kept it -- HokieHutch 02/20/2019 11:24AM

You could always split the family finances -- EDGEMAN 02/20/2019 12:31PM

You do understand that you are suggesting a logical conversation w/wifey -- vt_mughal 02/20/2019 2:23PM

Sit w/ the wife once a month? Are you insane? ** -- 48zip 02/20/2019 2:08PM

Been there ... I have no control of her, but I admit it. Key for me is -- HokieHutch 02/20/2019 12:53PM

Because it is forgotten money -- HokieAl 02/20/2019 10:35AM

Also, the $50 a month will PROBABLY get spent here and there without -- Late 80s Hokie 02/20/2019 11:03AM

Most people are idiots ** -- 1400E 02/20/2019 09:44AM

Don't forget to thank your public school's agenda. ** -- thankbud 02/20/2019 5:20PM

Winner winner chicken dinner ** -- fordham 02/20/2019 10:10AM

This is the answer to many questions ** -- WestyHokie 02/20/2019 09:53AM

Because most people don't put much thought into withholding -- Pylons 02/20/2019 09:23AM

At current interest rates, not really. ALTHOUGH if you did have that money -- Late 80s Hokie 02/20/2019 09:40AM

The case that a refund is terrible is much stronger if you consider debt. -- jmanatVT 02/20/2019 10:59AM

I think that should be the goal, get $100 or 2 back -- hoosnowahokie 02/20/2019 10:40AM

You also have to remember -- Pylons 02/20/2019 09:49AM

Because people have been fooled into thinking it's a good thing. -- vthokieq 02/20/2019 09:00AM

As a 1099 guy, I'd love everybody to have to do that, but collection issues ** -- RTFC 02/20/2019 10:27AM

Yes, people would be outraged if they actually had to write a check -- fordham 02/20/2019 11:15AM

Oh, it will never happen... -- vthokieq 02/20/2019 10:31AM

Well, the change came as a surprise to most. No one last year said -- jmanatVT 02/20/2019 10:16AM

Refunds and Christmas bonuses are 2 things no one should rely -- hoosnowahokie 02/20/2019 10:44AM

Define rely. Refunds are based off a formula which hadn't really changed -- jmanatVT 02/20/2019 10:53AM

Regarding your last sentence they're one in the same. -- vthokieq 02/20/2019 10:22AM

I'd generally agree, but I'm not sure for understanding tax code changes -- jmanatVT 02/20/2019 10:45AM

My Tax liability did go up this year, and at first I was a little surprised -- vt_mughal 02/20/2019 09:13AM

That $50K bonus will effect your tax payment...lol ** -- EDGEMAN 02/20/2019 09:15AM

Yeah, those people tend to enjoy “feeling the Bern” ** -- Hokie1992 02/20/2019 08:56AM

I guarantee the idiocy is in your preferred group just as strong as theirs ** -- jmanatVT 02/20/2019 10:11AM

Because I didn't put 1/3 of my refund into withholding -- hoosnowahokie 02/20/2019 08:49AM

Losing proposition, the kids cost way more than the tax benefit -- fordham 02/20/2019 10:12AM

Lol, I didn't have kids for the tax refund -- hoosnowahokie 02/20/2019 10:37AM

Letting you keep your own money is not paying you ** -- B777Fr8Dog 02/20/2019 09:49AM

It's popular in Germany ** -- darnellm 02/20/2019 08:41AM

A few possibilities

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