Why Getting a Tax Refund Check is NOT a Good Idea

April 13, 2011  |  

(Black Voices) — The IRS reports that 75 percent of taxpayers get a tax refund check each year, and that the average income tax refund is currently about $3,100. Getting a refund check after a year of hard work often feels like a bonus, but isn’t a tax refund more like giving the government an interest-free loan?

The reason why you are getting a refund in the first place is because you ended up paying more taxes than you actually owed over the course of the year. That money could have been left in a high-interest savings account or put to some good use. Consider the following 8 reasons why getting a tax refund check is really not a good idea:

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  • Cassandra

    It is about time someone said this. It is an ridiculous idea for someone to increase their w4 exemptions in order to get a bigger tax refund. Its like saying here borrow my money and keep the interest just pay it back next year. Few people understand that even if they kept all of their money at the end of the year they would still get the earned income credit.