/r/50501 Mirror

This really only applies to full time employees on a W-2 who also declared less than the actual number of exemptions they are eligible for.

Personally I always declare no exemptions, let them take the maximum amount, and then enjoy my fat return every March.

But lots of people claim too many exemptions for withholdings and end up owing money, are on a 1099 and don't have withholdings at all so need to pay their full taxes at the end of the year, or are a business and always owe taxes at the end of the year (unless they have fancy deductions to offset or defer their tax burden)