December 3, 2014 Admin | December 3, 2014 Getting a big tax refund is not wise. Why? How can you turn the tables?
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It is not wise because it is just your money your getting back at later time. You can avoid that being done by claiming dependents and waiting until the last minute to pay the money. You are pretty much borrowing money without having to pay interest. You can use that money to invest and make more money until you need to pay it back. If you avoid owing less than one thousand dollars than you avoid any fines.
If you get a large tax refund, then you had money that you could have been using during the year that you get no benefit of letting the government use for that time. You could have invested that money throughout the year or payed down debts. If you have money that is yours just sitting somewhere you should get it and use if for something productive. You can owe up to $1000 on your taxes without any penalties so you could owe lets say $800 for the year that you pretty much got a interest free loan for the year from that you could have invested and got a small amount of dividends or gains off of in that time. Ifs pretty much a free short term loan.
Well said, gentlemen. Garrett said it all. I have nothing further to add. Well done!