Not unless you like giving interest free loans to the government.
Those of you who filed right away this year you have probably cashed your refund check already.
For years I looked forward to our big tax refund. In fact it wasn’t unusual for us to receive several thousand dollars back from the IRS each year.
Then I realized that the IRS wasn’t giving me money… they were returning MY MONEY! Money that they had borrowed for a year.
All of a sudden that big refund check didn’t seem so great anymore.
If you are working towards paying down your debt, and/or you receive a large refund every year, my suggestion is to adjust your withholdings by filing a W-4 form with your employeer. By increasing your allowances you’ll receive more money every month in your paycheck.
You can use that extra money every month to pay down your debt, or increase your savings.
Last year we received a $200 refund, which is a huge improvement from the $6,000 refunds we received years ago.
Remember you can use TaxACT online and file electronically for free.
Have you ever received a large refund? Did you adjust your withholdings after receiving it?