http://www.dontbebroke.org Thoughts on Economic Freedom Sat, 26 Feb 2011 23:57:35 +0000 en hourly 1 http://wordpress.org/?v= http://www.dontbebroke.org/2010/04/15/tax-refunds-are-nothing-to-celebrate/ http://www.dontbebroke.org/2010/04/15/tax-refunds-are-nothing-to-celebrate/#comments Thu, 15 Apr 2010 18:00:17 +0000 debtfree http://www.dontbebroke.org/?p=73 Are you getting a tax refund this year? If so, are you happy about it? Almost every one I know who is getting a tax refund this year is absolutely thrilled about the money they’re “getting” from the government, while those I know who have to pay aren’t too thrilled about it. Actually the reactions should be reversed, and here’s why: the amount of your refund or payment due has nothing to do with your tax liability. It only has to do with how much you over or under paid during the previous year. In other words, if you owe money it’s because you underpaid your taxes during the previous year. If you’re getting a nice big refund it means you under paid – in other words, you let the government use your money interest free for an entire year. Wouldn’t it have been better to have that money sitting in some type of interest bearing account? Think about it for a minute. Now, are you still so happy about getting that tax refund?

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