You Might Regret Getting a Tax Refund for These 5 Reasons
Is a tax refund a good thing? Tax planners and other finance experts assert that, actually, it isn't. Here are five reasons why it's not a good thing for you.
When you get a tax refund, you're getting back money you lent the government free of interest for a year.
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You May Be Withholding Your Own Income From Yourself
A refund means you're essentially stiffing yourself of income throughout the course of the year.
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It Could Lead To a False Sense of Sudden Wealth
A tax refund, which is essentially a micro windfall, can throw your budget off and give you a false sense of wealth that can potentially lead to overspending.
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It Could Increase Your Risk of Being Audited
If your tax refund is too large, the IRS might be suspicious and choose to audit you.
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A Big Refund Means You Planned Poorly
Getting a hefty tax refund may feel like an achievement, but you likely should've been enjoying that money throughout the year.