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.

You Missed Out on Earning Interest

When you get a tax refund, you're getting back money you lent the government free of interest for a year.



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.


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.


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.


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.