Every time ‘tax season’ rolls around, the boasting of huge tax “refunds” crop up almost immediately. I always get a kick of this boasting, and hearing the ways in which people plan to “spend” this “gift.” I’ve even heard it referred to as “free money.”
The fact of the matter is, you don’t want a refund. The ideal, of course, is to ‘balance out:’ not owe, but also not get anything back.
The people grumbling about having to “pay back” the government have elected not to have the correct amount of tax removed from their checks each pay period. Maybe they did it on purpose, maybe not. But either way, that is their error. Those who boast about getting a “refund” have given Uncle Sam a tax-free loan for the year. They aren’t getting any money back — they’re simply taking in one lump sum the funds they could have used all year long.
Don’t Fool Yourself
I even know a fellow who thinks of taxes as a sort of “forced savings account.” A self-described over-spender, he purposely elects to have more taxes than necessary taken out, so he will be almost guaranteed a “refund” at the end of the year. Ridiculous!
There are, of course, many folks that share this sentiment. Never missing a trend, stores and services actually market to this ideal. “Spend your Tax Refund Here!” “Use Your Tax Refund on Something Special for Yourself!” Give me a break.
Do the Right Thing
For many people, taxes are among the least favorite things in the world. But taking the time to understand and accurately enter your withholdings – instead of playing games – is trustworthy, responsible, and simply the right thing to do.
by Angel “Boz” Terwilliger
Residential Life Magazine