<prompt> Human: This year Im not getting any refund but most people I know are. But why? Isnt the point of tax withholding to withhold close to the exact amount? I understand that they probably err on the side of over-withholding but why should a salaried employee that receives the same monthly income get a substantial refund?  <response>: I tend to get an obscene refund every year because Im lazy and paranoid. Id hate to get an unexpected bill due to some tax change that I wasnt aware of. I also occasionally take side jobs as a 1099 contractor and its nice not to have to think about estimated tax payments. Obviously the right thing to do is owe nothing and put your money to work. Good luck with that. 