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With tax time coming to an end, people are starting to receive their refunds, or a bill for what they owe.
Many people hold the assumption that they should be getting a refund, and even look forward to it. In actuality, getting a tax refund may not be the most beneficial scenario for you.
In a perfect world, you would not receive a tax refund nor would you owe anything to the government – you would break even. Many people tend to look forward to receiving a large sum back from the government each year, but that really means that you have essentially been loaning money to the U.S. without receiving any interest in return.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]Here is a fun fact from a 2017 Money Peach article:
“the average tax refund in 2015 was $3,128. This essentially means you loaned your Uncle Sam $260 each month at 0% interest and told him to simply pay you back “sometime next Spring.”
Sure, it seems nice to get that big check or deposit to your account after you complete your return, but what if instead, you had that extra money at your disposal every month?
When you start to think about all the bills you must pay and other household expenses that add up quickly, it starts to seem much more beneficial to have that extra cash on hand each month. Additionally, many people who receive large refunds tend to put that money towards luxury items, such as vacations, cars and other expensive purchases that they, most likely, wouldn’t have made if the extra money had been spread out over the full year. If the money you were refunded had stayed in your paychecks, it could have gone to paying down debt, paying bills or being saved and invested where it could earn interest.
If you are wanting to see how you can make sure you keep your money in your pocket reach out to a Concord NC CPA to help you with your personal taxes. If you did get a large refund, keep an eye out for one of our follow-up blogs on good ways to use it.[/vc_column_text][/vc_column][/vc_row]