[Granny Bear]

Interesting.

Also there's a 2nd reason to file late. If you owe money, filing late allows you to 'pay' less. This happens because of inflation and income growth, as compared to the static number of dollars you owe. The same can be said about letting the government keep your money throughout the year, and then gives it back to you the next spring. It gets an interest free loan for the year, and pays you back in last years dollars, not taking inflation into consideration. you lose money, in simple terms. This can be combatted by increasing your exemptions on your w-4 to a reasonable level to keep the taxes taken out of your check to a low level that will essentially cause a zero balance at years end. Its an instant 3-4% pay raise by doing so, and costs you nothing.

That's exactly right! And not many people will do this. Most folks my age are so intent on paying NOTHING at the end of the year, they basicly use their refund checks as a Christmas club account with the IRS taking all the interest income from it AND being allowed the use of this money throughout the year..free.