Quote:
Originally Posted by fjtorres
The federal withholding tables are designed for overpayment and refunds to provide the government with interest-free loans at taxpayer expense.
Of course, getting "too big" of a refund triggers audits and too big a payment due triggers fines. It keeps accountants and tax experts profitably employed.
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From a UK perspective it seems a strange system. Unless you're self-employed or a high earner, most people here don't have to worry about tax. Your employer deducts the correct amount from your monthly salary and everything happens automatically. All our tax allowances are either a fixed amount or a fixed percentage of your salary, so there's no uncertainty about how much you need to pay.