[Svartalfiar]

Apply you overage to this year’s tax, and cut your withholding. You get the money whether the iRS does anything or not.

Why are you giving Uncle Sam an interest free loan?

Huh? Applying overage to this year's tax is the same as withholding, only you have the whole amount upfront instead of spread over the year. That idea is a BIGGER interest-free loan to the IRS!!

You should KEEP your refund, pay off debt/invest it, and then drop your withholding to better match the actual amount of taxes. Pay as much of your taxes as you can WHEN THEY'RE DUE, and minimize any and all pre-payment!

[proxy_user]

That would be true if it were a significant sum of money to you. If you are rich, a couple of thousand dollars one way or the other doesn’t mean much.