There can be several reasons why someone would choose to have extra money withheld from their paycheck for federal taxes:
1. Living in a state with high income taxes: If a person lives in a state with high income taxes, they may choose to have extra money withheld to ensure that they meet their state tax obligations.
2. Patriotism: Some individuals may consider themselves patriotic and want to contribute more towards funding government programs and services. By having extra money withheld, they can voluntarily pay more in taxes.
3. High deductible insurance plan: Individuals with high deductible insurance plans may choose to have additional money withheld to cover potential healthcare costs. This can help ensure that they have enough funds to meet their deductible and pay for medical expenses.
4. Avoiding penalties: By having extra money withheld, individuals can minimize the risk of owing taxes or facing penalties when filing their tax returns. They may prefer to err on the side of caution and have more withheld to avoid any potential financial consequences.
Why would someone choose to have extra money withheld from his paycheck for federal taxes?
A person lives in a state with high income taxes and wants to make sure enough taxes are withheld.
This person considers himself a patriot and wants to pay more taxes.
This person chose an insurance plan with a high deductible.
This person did not want to risk having too little money withheld and facing a penalty when filing their tax return.
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