Tax refunds are bad

[jteezie]

I'm not a fan of refunds either. I prefer to pay the govt and make every effort to each year, although my income taxes persistently are lower than what I expect (overall good though). However, you should not pay more than 3 years in a row as it red flags you as some sort of tax evader even if you pay on time .

The one positive side of refunds is if the money is indeed FREE money from the EITC program. You'd have to be fairly low income for that.

[KiwiJo09]

I don't mind the tax refunds. I know the government is taking my money and not giving me any interest back for it, but since we don't have much of a choice, I'll just enjoy it. I don't know what I'll do with next year's refund, but since I won't know exactly how much I'm getting, it'll still be a nice surprise in February when I file my taxes.

[disneysteve]

My goal is to get as small a refund as possible. The problem is that virtually every year something happens - a medical bill or some other one time deductible expense - that results in a larger refund than anticipated. I don't fret about it. I just make sure to put the refund to good use by either boosting our savings or paying down debt. Last year I used it to help max out our Roths early in the year. This year, I sent most of it to the mortgage as an extra principal payment.

[SteveBlissLaw]

A very good choice steve. You use your money wisely

[shanecurran]

In defense of people who get refunds:

- Well, yes, some people really are "financial fools" (the author of the article's words not mine) and a tax refund may be the only way they are capable of saving. My brother who is developmentally-disabled uses his tax refund to pay for a trip or make a major purchase each year. Money that he has access to is going to get spent. Sad but unfortunately true. We could pressure him to have his withholding adjusted so that he got more money each paycheck, but then he would never save up enough to take a trip or buy a new bicycle.

Everything is relative. Tax refunds may not be the very best option, but sometimes they are the lesser evil.

I agree. Some people simply don't have the discipline to save if they are not forced to do so. For them it is not stupid for them to do so, and in the end the amount of money they could have potentially earned in interest is insignificant compared to the value of some sort of planned savings.

[ThelmaBGraham]

Yeah, This tax refundation is takes very big issue and lots of critical process want to follow to refund our money.

[ThelmaBGraham]

Yeah, This tax refunds is takes very big issue and lots of critical process want to follow to refund our money.

[ThelmaBGraham]

I agree. Some people simply don't have the discipline to save if they are not forced to do so. For them it is not stupid for them to do so, and in the end the amount of money they could have potentially earned in interest is insignificant compared to the value of some sort of planned savings.

Yeah, This tax refunds is takes very big issue and lots of critical process want to follow to refund our money.

[krantcents]

My goal with taxes withheld to keep it as low as possible. I am a much better money manager than the Federal govenrment.

[dawnwes]

You posted this 3 times so you must feel strongly about it, and yet, I still have no idea what you are trying to say.

Dawn

Yeah, This tax refunds is takes very big issue and lots of critical process want to follow to refund our money.

[dawnwes]

We try not to get a refund, but some years we can't help it. When we got our tax credits for our adoption, it took 3 years to fully get the credits back and so we had to do it through taxes and refunds.

Our child tax credits always come through credits so we get $$ back for that.

But we do try to cut it as close as possible.

Dawn

[tripods68]

We use our TAX REFUND to pay for property tax due, property insurance, and portion of our vacation trip. Sure I lose $1.00 worth of potential interest, but its my MONEY. You don't have to make people feel like an IDIOT for receiving tax refund.

Once would argue to you, "I don't tell you NOT to smoke, or NOT eat FATTY FOODS which contributes to Americans overweight society which associated to heart disease, Cancers, or other related ailments Americans develop each years which cost billions of dollars of health care cost. No wonder my health insurance premiums keeps going up and up, far greater than my wage or inflation. But then you tell me I give Gov't free money, how dare YOU preach to me!"

[Frugal]

I kind of agree refund are not the best idea, but I actually love to get my refund, as well. Let me just say getting married at the end of the year not so smart for your tax refund! Ours took a huge hit, and we got hardly nothing back last year.

[danieldroga]

It is really helpful to find out the reasons on why getting a refund on our taxes is not a good thing. Thanks for sharing.