Have you noticed your paycheck is a little larger lately?

[one...two...tree 2,762]

The past two years, we've owed around $1500 in federal taxes, more in state taxes. So it looks like not only will we not get a refund next year, we'll be paying even more in taxes

Scott, since you both are working - one of you needs to claim, "Married, but withhold as Single." I can't imagine why you'd owe that much in taxes unless the number of exemptions is off on your w-2's.

[The_Dude 1,142]

Why on earth would someone have extra taxes witheld from their paycheck? Why would you have taxes witheld from your paycheck to begin with? File exempt and pay your tax bill on april 15th. Prepaying for something is a net loss.

[one...two...tree 2,762]

Why on earth would someone have extra taxes witheld from their paycheck? Why would you have taxes witheld from your paycheck to begin with? File exempt and pay your tax bill on april 15th. Prepaying for something is a net loss.

Not by that much. If you got a $1,500 tax refund this year...putting that same amount instead in a savings account wouldn't earn you enough to buy a steak dinner.

[The_Dude 1,142]

Why on earth would someone have extra taxes witheld from their paycheck? Why would you have taxes witheld from your paycheck to begin with? File exempt and pay your tax bill on april 15th. Prepaying for something is a net loss.

Not by that much. If you got a $1,500 tax refund this year...putting that same amount instead in a savings account wouldn't earn you enough to buy a steak dinner.

First, I didn't mention a savings account. That doesn't earn money, and really never has. Second, why would you prepay for something? It makes no sense. The government isn't going to invest it and earn money to pay down the national debt. Nor are they going to use it to help a struggling taxpayer. It's either going to be immediately spent on some government program, or sit and do nothing. Either way, it's a net loss for you.