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Planning for Taxes

My father-in-law believes in having as little tax withheld from your check as possible without having to owe. He says that setting yourself up to get a refund each year just gives the government an interest-free loan on money that you could've been earning interest on yourself. The goal, then, is to get as close to nothing owed, nothing refunded as possible.

That makes sense to me. Really, it does. But living there makes me nervous. What if a tax credit I got one year doesn't exist the next? What if the few freelance projects I do every year pays me more than I've allowed for? I'd always rather have a refund. Big, large, it doesn't matter.

To ensure I get something, I've always extra taken out. For the last couple of years, it's been $30 a paycheck. However, with extra coming out of my check for my daughter's health insurance now, I could really use the $30, so for the first time ever, I have nothing extra being set back from my check.

Scary. 
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