<prompt> Human: I minimize the amount of deductions that I have on my W4, I have it listed as single with 0. Since I am married and have a daughter this is pretty far off and we usually get a really good tax return. This year we are getting 8k last year we got 6k. I have been told that this isnt really all that smart because I am giving the government an interest free loan. While I know that is true, since we save more than we spend each month and banking interest rates are so low...by having less taken out each month wouldnt I just be giving the bank a nearly interest free loan instead? This way I get a big windfall once a year its like winning a scratch off! Who out there has actually done something useful with their taxes and then paid them at the end of the year? How did you do it?Assistant: by having less taken out each month wouldnt I just be giving the bank a nearly interest free loan instead?What is your plan for this money? You could get better than 1 interest by doing a few things... Pay off debt early! including the house! I-Bonds Load up on good Mutual and Exchange Traded Funds for the long haul This way I get a big windfall once a year its like winning a scratch off! And... what are you doing with this windfall? If you treat it like lotto winnings and blow it on hookers or something - thats much worse than giving the bank a nearly interest free loan.Human: I use the money to pay for something rather than saving up for it all year. I split the money between a family vacation we want to take every year and paying down student loans. I know I could use the money through the year and pay a little extra each month on the student loans. This amount I save isnt incredible, but it is worth it, I agree with you there. I think that I will do that this year. Thanks for the advice.  <response>: If you have debt, i would avoid lending thousands of dollars to the government at 0. 