*Loan,banking and credit>>>tax refund

Is taking fewer deductions to have a large tax refund smart?

My husband insists on rigging his w-4 so that we pay out a lot in taxes and get a 6,000 to 7,000 tax refund every year. While this has been nice and something to look forward to every Janurary, I want to start saving and investing. I think he should have more tax home pay so we can start a retirement account and long-term savings. (Right now we have nothing).

He doesn't want to and says "absolutely not". I know this is because it is fun to have a lump sum of money to do things with. But I think we could be using or money more wisely.

THoughts?

As a volunteer tax preparer I have this argument all the time with people who make interest-free loans to the government so they can have the satisfaction of getting a check in the mail. I never saw anyone deliberately get a $6,000 refund, however--that's really beyond the pale.

The pattern of irresponsible money management and spending you are describing is a sure road to financial ruin and/or marital problems. If he is totally unable to put aside a dime and won't listen to your concerns then you need marital counseling as well as financial planning. Assuming you aren't independently wealthy, your options are to get finances straightened out now, divorce and work for yourself, die young, or live in poverty when you both can't work.

The easiest solution from a financial point of view is to put that $6,000 a year in a 401(k). You won't miss it from the weekly paycheck, it will reduce your overall tax bill, it will grow tax-deferred, and his employer will probably match a portion of it with free money.

His way is smarter....because if you put less taxes than you should, in the end you will just end up paying.
Would you rather get a refund of 6000 or pay it back to the government?

Why not invest the money you get from your refund into mutual funds or something?
what is smart is figuring out how to come out almost even. no sense in giving the government money they have to give back to you, to only charge you taxes because you had a refund.
You need a written budget, which includes a provision for savings. You're broke because of your behavior. Giving the government a free loan seems contra to your goals.
www.daveramsey.com
no i would say your husband needs to change his mind -- why let them have the use of your money from 15 to 3 months. you would be better off like you say to put the month into a IRA and hope for a break even tax bill.
Congradulations to your husband. He is giving the government an interest free loan of 6 to 7 K, a year. Sounds pretty stupid to me. You would make more in interest alone, even a 0.5% if he took that excess, that he is paying to the government, and put it into a simple savings account. You would make even more, if you had an automatic deduction each payperiod added to an investment acccount.
Suggest to your hubby that he spend $50.00 bucks to consult with an accountant or tax advisor to find out a better way to spend/save your money.