THIS. However, it is easier for us to save money by having a decent refund at the end of the year- then we just stick it in our savings.
It also helps if you do a projection during the year to make sure you are having enough withholdings taken out, or spend an extra hour before you do your taxes to see exactly what credits are available for the year (Both Fed & State credits). Wayne made out very well because we did many improvements to the house that qualified for the energy tax credit ($1,500 max credit).