Ahhhhh...it feels so amazing to have the Government send you a check in the mail doesn't it? Most of us just can't wait until tax time so we can get a fat check from the Feds and the State. The funny thing is, none of us should be getting a refund at all. All a refund is, is the Government saying, "Hey, you gave us too much. Thanks for giving us a loan at 0% interest, now here is your money back." It's kind of like buying a gum ball with a $100 bill and WILLINGLY and KNOWINGLY letting the clerk keep your change for a year. Sounds pretty dumb huh?
I think we actually lose track of what's actually happening. Why do we get so excited when we get a big refund? It's already our money. It's not like the Government is giving it to us. It's ours, we gave them too much and they make us go through a lengthily process to get it back. None of it makes too much sense.
It's very easy to avoid letting the Government borrow money. In fact, last year they issued over $300B in refunds. That means they got an interest free loan from us for $300,000,000,000. I'm sure they used that money to make money so what do we get out of it? Nothing. The only thing we can do is make a few changes to our own taxes to avoid the Government taking advantage of our money. You can change your withholding amounts and you can do quarterly estimates.. This way if you owe a little at the end of the year, you can pay it with out a penalty.
For some people overpaying their taxes is good. It's like an untouchable savings account for the year. Some people need the Government to hold money so they don't spend it. This makes sense doesn't it? If you have money spending problems, just over pay your taxes a bit and at the end of every year you may have $3K-$4K saved that you weren't able to access and blow it on that new TV or that new Coach purse. Kinda sweet huh?
Cheers!
K.A. Ball
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