income tax refund Tag

03 Oct The Dangers of Big Tax Refunds

Taxes 75% of tax filers get a refund. And the average refund amount is over $ 2,300. I was surprised by these figures. Am I the only one not getting an "annual bonus" from the government? What is wrong with getting a refund check, and what does it have to do with filing for bankruptcy? Plenty. Can you imagine your employer not paying you the full compensation earned? What would you do if he held back a few hundred dollars every month and promised to make up for it later? Nobody would tolerate this. Lawsuits would be filed. But when it comes to income taxes, most people don't mind overpaying the government as long as they can square things up each April. They even look forward to the annual refund as a forced savings program. Many who get large refunds treat it as "found money" and don't associate it with the unnecessary economic stresses suffered the prior 11 months. The problem with a tax refund is that you short-change yourself every payday in order to get one. A $ 4,800 tax refund sounds exciting, but if you have to live $ 400 poorer every month, it is not worth it. For families that live paycheck to paycheck, $ 400 a month makes a big difference. My advice . . . . don't pay more in taxes than you need to.
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