What is the benefit to not claiming dependents on my W-4.

I calculated the monthly difference in claiming 0 dependents versus 2 dependents on my W-4, and the monthly take home difference in $100.00 or $1,200.00 a year. Would there be any benefit in claiming 0 dependents in regards to Tax Refund? Or should I just keep the 2 dependents and enjoy the $100.00 a month?

posted

If you don't claim the deductions on your W-4, you are giving the government a 0% interest loan on the extra money for the entire year. It would be better to take the money and use it to pay down any debt you have or invest it. It is a matter of personal preference though.