They say the only certainties in life are death and taxes, or something like that.

But what about your tax refund?

Every year, from January to April 15th, millions of American tax payers are reminded that not only is Uncle Sam entitled to a hefty chunk of their pay, but sometimes has been accidentally overpaid.

Some years, depending on how much you’ve withheld from your paycheck, tax credits and  deductions, you may be looking at a few thousand dollars in tax refunds.

However, if you don’t receive a refund, it probably means you’ve done a good job planning, and that you haven’t overpaid the government!

Finding out you aren’t getting a refund is certainly better than finding out that you OWE money come April 15th, but maybe a bit disappointing when you hear friends and colleagues talking about their incoming tax refund.

Did you receive a refund this year? Check out our guide on how to save and invest your tax refund, and let us know your story in the comments!

This Post Has 2 Comments
  1. I look forward to getting a big fat IRS refund every year! I see it as another mechanism in the psychological battle to save more money with the added benefit of giving my government an interest-free loan so that we as a country have to borrow less money (basically, a win-win). The problem with a high-income is that it’s easy to let the dollars slip through your hands like grains of sands, so for years I’ve set the withholding at 0 exemptions and let my employer overwithhold. I don’t miss the money and of course I get it all back in the Spring anyway. I find it’s so much easier to make 1 good decision each year with an IRS refund than it is to make 26 good decisions every pay period to save that money, so I’ve set it up this way to take advantage of my own psychology.

    Cheers!
    Josh

    1. Josh,
      Interesting perspective, although if I’m loaning money to the government, or anyone for that matter, I’d like to at least get the equivalent yield in return! Agreed from the angle that it’s easier to make one smart decision than 26, but if you have some automated savings and investing systems in place you get the benefits of dollar-cost averaging throughout the entire year, as opposed to having one large lump sum to deploy all at once.

      There’s more than one way to skin a cat, so thanks for sharing your take!

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