I had a conversation with a girlfriend last night about her W-4 withholdings — she wanted to make sure that she wasn't paying too much in taxes throughout the year because of an incorrect withholding election. Understandably, she doesn't want the government holding on to her money during the year, making interest on it and then ending up with a tax refund.
If you're having too much tax withheld, money that could be earning you interest from investments or a high-yield savings account instead isn't working for you at all. But some taxpayers are uncomfortable with the prospect of owing taxes if they've underpaid throughout the year. Where do you stand?