03 October 2010
The Truth about Tax Returns
I know many people think that the tax refund check is pretty sweet. After all, they can use it to pay a bill (We see this quite a bit with our day school and back tuition payments.), to spring for something special (like a new TV or computer?), or just plain to think that they got lucky and won some kind of lottery.
Actually, the truth still remains: that money has always been yours. If you're getting a sizable "refund" from Uncle Sam's IRS, then you're loaning too much to Uncle Sam in the first place, and not getting any interest back for your "generosity." Wouldn't you rather use your money yourself, rather than let government bureaucrats and politicians decide how "best" (Do I hear pork calls and sounds of earmarks?) to use the money that God gives you to manage?
Here's a series of helpful articles over at MoneyPlan SOS - Financial Coach that helps understand the problem with withholding too much, receiving too big a tax refund, and how to correct the problem:
Tax Refunds: Part 1 (Tax Liability)
Tax Refunds: Part 2 (Withholding)
Tax Refunds: Part 3 (Tax Returns)
Tax Refunds: Part 4 (The REFUND)
Be sure to check back with the financial coach for future articles. I'm sure they will be just as helpful as these first installments.