Big tax refund — good or bad?

On my W-4 form I have an additional $100 taken out of each paycheck so I get a big refund when I file my tax return. Will I be put in a higher tax bracket because of this or would there be any penalties? Also, do you think this is a good idea? I am single, with one dependent, and claim file as head of household.

First, nobody will owe any additional taxes or incur any penalties because you have overpaid your taxes. The IRS reserves its wrath for those who underpay their taxes.

I commend your inclination and ability to save, but you are going about it in the wrong way. You are giving the government a tax-free loan and depriving yourself of the value of the money. You could readjust your W-4 and use the additional money to increase your retirement or college savings or pay off high high-interest debt such as a credit card balance. Most banks and credit card companies allow you to set up automatic payment plans, so you don't have to worry about wasting that extra money.