<prompt> Human: Where I work I have met 3 people that have had people where they have filed for their tax return and someone has already taken their refund. An identity theft. I was wondering if it would be a good idea if I were to with hold as little from taxes on my W-2 and the. Just pay in what I owe. I would save a chunk of my pay check every check. I was wondering if there are any penalties or issues other than having the temptation of spending the money.  <response>: If you underwithhold too much there are penalties. The US has a pay as you go system, not a pay by April 15 and youre all good system. Aim to withhold correctly. This means you oweget back as little as possible. 