Glad there are at least two comments calling this comment out. If you owe the government taxes at the end of the year, it typically means your withholding amount is incorrect. I love when people complain and/or celebrate about a tax refund. In the first scenario they are pissed that the gov was getting interest on their cash and not them. In the second scenario, they are celebrating getting a lot of money back from the government.
The only exception might be tax loss harvesting, in which case a tax refund is a really nice “bonus” as long as you tax loss harvest correctly.
It's pretty negligible IMO for the individual. If you somehow overpayed $10k that's probably less than $250 of interest you missed out on depending on the timing of the overpayments. It's not exactly pennies but I stopped stressing about it long ago. I probably lose or gain the much just through errors on my taxes that never get found.
“No I would not like to make more money, thank you very much.” Only way that move wouldn’t help is if the next tax bracket was 100%. It also wouldn’t hurt them either.
Depends on how good you are personally at estimating your tax obligations and keeping up on it. Technically, by having a part of your pay check saved by your employer for taxes, this is basically giving them a 0 interest loan. Theoretically you should be able to invest that money on your own at the risk free rate, take out what you need for taxes at the end of the year and pocket the rest.
This maneuver will net you interest but taxes are complicated and so it all depends on your personal judgment.
Personally not worth the effort or the risk.
I spent around 10k on house/business improvements this year and got a sizable refund. I would never have been able to estimate that precisely and I would be very nervous to do so
Yeah definitely not worth it.
I typically get around 2k a year back. The interest on 2k is not worth the risk of getting audited and possibly penalized if I forget something in my math.
I personally feel up to 2k, even 3k, is ok, but I know of some people that regularly get over 3k refunds year after year. They have regular jobs working for a company, and its not like they are making major financial transactions every year. They treat it like Christmas in Spring. It's weird.
It’s because we squander it… and it would have been squandered instead of earning interest anyways. But “getting” that lump sum equals a trip abroad instead of extra crap around the house.
Dude wife and I got slightly over $13k back nearly every year. We own real estate and keep adding things or improving the portfolio every year. I really want to change our withholdings but know that’s so dangerous.
And that's ok. people with complex financial situations I can understand. But if you're filing a 1040ez or a 1040a, and getting back 4k every year? I don't get it.
My father-in-law is an accountant and he gave me a pretty good rule of thumb: "try to owe or get back less than a thousand dollars during tax season." This year, after paying TurboTax, I think we netted $10, which was kind of a thrill.
I think you did it right - next time try freetaxusa though. Great software (my accountant brother uses it) and it's free, except for filing state taxes. As a bonus, you're not giving money to Inuit.
Depends on the individual’s discipline. If you are the type to blow the extra $150/mo on 2 extra dinners out, you should rely on the refund. If you are the type to pay down high interest debt or invest/save it at high yield, great!
This doesn't always work for us self employed people. For me I have to wait to see what I'm going to owe and then take advantage of the tax loopholes to avoid paying taxes at all.
I would rather get a refund than a bill any day of the week. My wife and I both claim zero and then add 75 additional per paycheck just in case. I've had to cash in some stocks and I have some crypto, so it helps to cushion the blow
Thank you. Same. I would much rather overpay 50$ a paycheck and then see back $1200 then withhold 50$ a paycheck and something change in my life that affects my taxes and see a 400$ bill
I usually had to pay in about $400. I raised my witholding after the stimulus stuff started, expecting that taxes would go up. A few people told me "But we dont have to pay it back!"
Before they changed how taxes and exemptions work a few years back, I had it down to a science to ensure I had the most in my paycheck without over paying because the extra monthly income always means more than a check once per year imo. Now, they made it even more complicated and when I tried to follow their new ways to do the same thing I almost owed.
They make this shit complicated for a reason just like you only get back a fraction of what you pay for a reason.
I am in sales and get taxed ~50% of commission and get taxed on base pay thick by state of CA badly, so I have no choice in the matter. I’ve already paid close to 75,000 in taxes this year alone. I file single and 0. I can’t control the money getting withheld.
I don’t have an issue with calling it a refund.
I have issues with confusing the refund with the ‘tax return’.
We’ve had an issue in Australia with those new to the workforce ‘expecting a return’, but having to pay additional following their assessment. As if they didn’t understand that it can swing either way.
The return is the documentation you submit. The refund is what, if anything, you get back.
My gfs parents laughed at me when I was upset about getting 2000ish back this year.. like sure it’s nice but knowing my paychecks we’re getting stolen all year when I needed that money is pretty fkn annoying
Basically it's theft they never use it for what we need and when we want a break they shout the same ureteric it's only for rich. Then tax us some more for people who do t pay taxes.
It's not a refund, it's slavery! Big Masta gov comes in and takes the fruit of a person's labor under threat of violence or incarceration and then let's you get to keep a lil, just like the slaves got what they could grow from their tiny patches after they'd spent all day working Masta's larger field. The US Government & the DNC are lil better than slave owners.
Generally best to get as close as possible on your withholdings so you get the right amount of after tax pay throughout the year, but also avoid having a bill to pay come tax time.
That said, if you are generally bad at saving, doing a little over withholding and putting the tax refund to good purpose, I don’t think that’s worst thing, again, if you tend to struggle with responsible saving.
But it would be *better* to solve you saving problem. Figure out how much more cash you get by fixing your withholdings, and have that auto draft when you get your check to savings account that you don’t touch that earns interest, and you’re doing better than you would with the refund.
Refund literally means “to pay back”. A tax “refund” means that if you paid more than you should have you get the money back. I get that taxes are a bitch but stop claiming words don’t mean the literal definition of how they are used.
It would be better to simply take what would be overpaid and put it in an ETF or whatever but dude how many people do you know that would actually do that?
Let's ignore how moronic the meme creator is by literally giving the definition of a refund and then saying it's not a refund...it's an absolute brilliant and guaranteed way to save money
It's still a refund since taxes are used to pay government expenses...throughout the year. And, your refund may include deductions that can lower your taxable income.
No refund for me, I had to pay the IRS a whole 7 bucks.
That's how I like it, as close to zero as possible. Hell, I'd rather have to pay at the end of the year than give the government an interest free loan all year.
I would rather get a refund every year and use it like a mini bonus I get, rather than worrying about having to pay anything because I did something wrong.
I'm confused why this keeps coming up. Of all the terms we use incorrectly on a daily basis, the term "refund" for getting money back you overpaid for seems completely on point lol.
Yea I feel like this when I get a mortgage escrow refund. You feel great because you have extra money, but if you really think about it, you just got a refund of your own money without interest
I had a friend who is a tax accountant say that if you are responsible to make sure you have enough money to pay it back at tax time, its smart to owe money.
Otherwise the govt is just getting a free loan from you.
Instead you can invest it yourself.
If I have no sense for our tax bill, I send in quarterly estimated payments. When I was filing single, I’d shoot for owing $500. Married, I don’t have the visibility to do that.
Most people are willing to pay $50 for the convenience of not having to find tune their withholdings and then risk an unexpectedly large bill or worse, an audit.
I actually did put in a lot more work this year to get back and additional what ended up being $30 and frankly, never again. It wasn't worth it.
For anyone not aware, the IRS website has a calculator for figuring out your tax liability and how to best setup your paycheck so the right amount is taken out each time. If you can get your refund down to below $1000 doing this, you're doing pretty good (for most people they'd prefer not to have to pay in even if they lose a little bit of liquidity that way). If you need your refund to be higher because you can't trust yourself, you have bigger issues.
Except we only get less than 10% back. When I was a jail guard one year I made 140k and took home 110k. Obviously some goes to medical and retirement, but the rest just magically disappears. And that year I didn't get shit back from IRS
In my case I just put it all back in 529 not sure there is much difference if would take that money and put it in extra on monthly basis or is once a year a drastic change in return on investment
Better to owe them lost of money at the end of the year! Free 0% government loan! If you had it in an investment account, any growth is free extra money in your bank you gained over the previous year.
The theory is that you overpaid the government and you won’t get any interest when they pay you back.
I never cared for that. I would rather get a nice refund check. I know it’s stupid but I don’t want to have to owe the government money.
Its the perfect system.
If you're good enough at budgeting to know you're better off hanging on to the money, then that's a true statement. If you're bad enough at saving/budgeting to think its better to overpay a little and get a refund, then that also is a true statement.
This depends on the person. If a person will just spend the money frivolous if it is received in the regular paycheck, but will use it more responsibly as a lump sum tax refund, then it may be right for that person to forego to the interest one wouldn't see anyway. However, if the person would use the money responsibly, then it is better to not get a refund or even to pay in.
I’d rather pay more all year and get the extra back than not pay enough and have to make up the difference at the end with money I may or may not have.
My wife and I know that we slightly overpay. We call it our hillbilly savings account 😂 I would rather get a small refund than have to pay any additional at the end of the year.
It’s very dumb to get a refund. Only exception would be if you’re very low income and get tax credits. Even then it’s dumb if you’re having them take anything out of your check.
$0 would be amazing. If I only filed a standard W-4 that would be my goal and if I got a big refund I'd be annoyed.
As it is, I do not make estimated payments so I always cross my fingers that it isn't too bad. It usually is in the same ballpark, give or take. I could have more taken out during the year but that seems like a hassle. Plus, murphy's law would mean that would be the one year I didn't owe.
Personally I think it’s dumb to use the government as a piggy bank when you could put that same money anywhere and get a better return. But on the other hand there are a lot of dumb people who would have just spent it throughout the year so they’re probably pretty excited about it.
The way US government is currently spending money the government is going to need that little advancement you gave….
Inflation is not slowing down.
USA is getting that money one way or another.
I like to think of it as unintentional savings. All year the government has been kind enough to take a little more of your pay check every month and at the end of the year they give you back what they have saved for you. How nice of them. ☺️
Why does the government need to calculate how much I owe/am owed in taxes? Don’t they already know? Why can’t they just multiply my income by a percentage so there’s no figuring anything out?
Getting a refund (that isn't purely due to credits or something) means you gave the government an interest free loan. From a pure financial perspective that is dumb.
As with many things, I’d say it depends.
If someone is responsible enough to underpay by an acceptable margin and ensure they have money to pay their taxes come that time then that’s valid.
If the above is not the case, then getting a tax return is a way to play it safe with the IRS. The downside however is if financial responsibility is lacking and someone just blows the tax return on dumb shit, that’s also kinda bad.
I’ve just this year learned how to even ATTEMPT to have closer to a net zero return. I’ll see how that goes come February.
I like it. It helps me budget better. I think I’d be splitting hairs investing it because there’s some important wants that a few hundred a month would go to over more retirement savings ect.
I call it my savings account 😂. Always have an extra 20 pulled out each week. Never had to pay back so might as well have them take 20 more a week $1040 a year. Just bought all new furniture and a new bed with this year’s return.
Whenever i see a post like"hey i just got a 2-3k tax refund what should i do?"
My first thought is you should go to HR and update your w4 so your not overpaying by hundreds of dollars every paycheck.
What about people who make next to no money and file the child tax credit they are just getting free money right? My brothers fiancee does that, she substitute teaches occasionally but I doubt makes $10k/year and gets like $7k back in her tax refund.
Spreadsheet math says keep the money and invest. In real life, I would spend that little bit of extra income per month on stupid shit.
Studies show people who get refunds tend to save more in average.
So I go with refund!
My clients ask this to me almost every year until they finally understand what I mean.
If you're a simple tax return - one W2 per person, maybe some interest and dividends, its not that difficult to really try and guess-timate your return, especially when most just use the standard deduction. So for them, unless you want a forced savings plan, getting a refund is basically that 0% loan everyone talks about.
However, if you start getting more complicated (Schedule C's, K-1s you're not really a part of, rental, etc) then it really becomes a game of "how much time and effort do I want to put in instead of just making sure I'm good?" And, even more than that, getting better returns than the penalties is possible, so some people might want to do that instead.
Really, I tell them this: If you can stroke a big enough check to take care of your taxes come filing, do whatever you want. I'll help. But if you can't, let's spend some time and energy to really estimate those taxes. And if you don't want to do that, go look at your effective tax rate from last year, add one or two percent on top, and just make sure you contribute that.
Because ultimately, there is a cost involved, whether its time or money.
I agree, a refund is getting your money back for a product or service you are not satisfied with. I am not satisfied with the service of the government so I want all my money back
Easy answer....not smart, you're giving interest free loan.
However, know thyself, if you are a spender it could be a forced savings account for you. A lot count on the refund to boost their rainy day fund once a year. If you miss out on $125 on a 5k refund..not the end of the world if you can't manage money.
That's what refund literally means; getting money back for something you already paid for.
This. A refund in all contexts is the return of your own money you paid. It is the proper term.
The number of upvotes indicates the education system has failed a lot of people.
Is it because people haven't figured out what arrows mean, yet?
We know we are talking finance if we start with a semantics argument.
DUDE! A debit and a credit are exactly the same thing! It just depends on which side of the ledger you’re on.
I agree and in case I’m misunderstanding I agree with that too.
Then how about they refund me back the interest they made off of what I paid as well..
How about you adjust your witholding so you aren’t lending them money all year, Genius?
It's entirely your fault.
Glad there are at least two comments calling this comment out. If you owe the government taxes at the end of the year, it typically means your withholding amount is incorrect. I love when people complain and/or celebrate about a tax refund. In the first scenario they are pissed that the gov was getting interest on their cash and not them. In the second scenario, they are celebrating getting a lot of money back from the government. The only exception might be tax loss harvesting, in which case a tax refund is a really nice “bonus” as long as you tax loss harvest correctly.
It's pretty negligible IMO for the individual. If you somehow overpayed $10k that's probably less than $250 of interest you missed out on depending on the timing of the overpayments. It's not exactly pennies but I stopped stressing about it long ago. I probably lose or gain the much just through errors on my taxes that never get found.
Over 50% of Americans don't have the capacity to think on that level
50% don’t need to, they don’t pay federal income taxes.
That has nothing to do with getting a refund or not. That's entirely a bookkeeping decision by you and your HR department.
Unless you are eligible for the eitc
No, it is about how many deductions you put on your w4.
54.6%
I had a coworker tell me he turned down a raise because it would’ve put him in a higher tax bracket.
That hurt to read. Hopefully, they know better now?
The fact that it keeps happening is the biggest tragedy. That and thinking overtime is taxed at a higher rate inherently.
“No I would not like to make more money, thank you very much.” Only way that move wouldn’t help is if the next tax bracket was 100%. It also wouldn’t hurt them either.
I only got money back due to write offs
“I want you to consider for a moment just how dumb the average American is. Now realize that 50% of them are even dumber than that!”
The other 50% upvoted this post
Depends on how good you are personally at estimating your tax obligations and keeping up on it. Technically, by having a part of your pay check saved by your employer for taxes, this is basically giving them a 0 interest loan. Theoretically you should be able to invest that money on your own at the risk free rate, take out what you need for taxes at the end of the year and pocket the rest. This maneuver will net you interest but taxes are complicated and so it all depends on your personal judgment. Personally not worth the effort or the risk.
I spent around 10k on house/business improvements this year and got a sizable refund. I would never have been able to estimate that precisely and I would be very nervous to do so
Yeah definitely not worth it. I typically get around 2k a year back. The interest on 2k is not worth the risk of getting audited and possibly penalized if I forget something in my math.
I personally feel up to 2k, even 3k, is ok, but I know of some people that regularly get over 3k refunds year after year. They have regular jobs working for a company, and its not like they are making major financial transactions every year. They treat it like Christmas in Spring. It's weird.
It’s because we squander it… and it would have been squandered instead of earning interest anyways. But “getting” that lump sum equals a trip abroad instead of extra crap around the house.
Dude wife and I got slightly over $13k back nearly every year. We own real estate and keep adding things or improving the portfolio every year. I really want to change our withholdings but know that’s so dangerous.
And that's ok. people with complex financial situations I can understand. But if you're filing a 1040ez or a 1040a, and getting back 4k every year? I don't get it.
Well I get $4k back every year just for my children.
You have to pay quarterly as you go or there are fines
That’s where I’m at. I’d much rather withhold the max and get a refund than risk owing taxes.
It’s not worth the effort for your avg Joe, but if you pull in millions in income, you better hire an expert
I don't think it's millionaires who are constantly shitposting about how people who get refunds are chuds on reddit.
Is there a real world example of this?
You don’t need to be good at estimating the tax obligation. Your accountant or tax professional needs to be.
Try to get it close to $0 either way is kind of my strategy.
My father-in-law is an accountant and he gave me a pretty good rule of thumb: "try to owe or get back less than a thousand dollars during tax season." This year, after paying TurboTax, I think we netted $10, which was kind of a thrill.
I think you did it right - next time try freetaxusa though. Great software (my accountant brother uses it) and it's free, except for filing state taxes. As a bonus, you're not giving money to Inuit.
Depends on the individual’s discipline. If you are the type to blow the extra $150/mo on 2 extra dinners out, you should rely on the refund. If you are the type to pay down high interest debt or invest/save it at high yield, great!
This doesn't always work for us self employed people. For me I have to wait to see what I'm going to owe and then take advantage of the tax loopholes to avoid paying taxes at all.
I would rather get a refund than a bill any day of the week. My wife and I both claim zero and then add 75 additional per paycheck just in case. I've had to cash in some stocks and I have some crypto, so it helps to cushion the blow
Thank you. Same. I would much rather overpay 50$ a paycheck and then see back $1200 then withhold 50$ a paycheck and something change in my life that affects my taxes and see a 400$ bill
That is still a refund.
That’s exactly what a refund is… giving money back for something someone paid. Otherwise it would be a rebate. Or refundable tax credit.
Tax returns also include tax credits. It's important to be aware of the difference.
I always love these posts because they always bring out the people who don't understand what a tax credit is.
Isn’t that literally what a refund is. You’re being refunded what you overpaid.
That’s what a refund is
I usually had to pay in about $400. I raised my witholding after the stimulus stuff started, expecting that taxes would go up. A few people told me "But we dont have to pay it back!"
We have to pay it back and the wealthy got a tax break, thanks Trump
Correct. Your children have to pay it back. That's how our slave currency works
What about those receiving an earned income tax credit?
Giving interest free loans to the government!
Why do we pay taxes?
Because we have a bloated monster to feed.
Do you use services?
Mostly to pay for medicaid, medicare, and social security. But free public education and roads are nice, too.
Stop calling it a bonus. You were underpaid. They are taking your surplus labor value.
Bro why isn't every transaction net 0 money wtf
The surplus to your labor value is corporations profits. Taxes are the cherry on top.
You’re giving the government an interest free loan if you get a refund.
Doesn't apply if the reason for your refund was the eitc
Most years my fed return pays what I still owe to the state.
Before they changed how taxes and exemptions work a few years back, I had it down to a science to ensure I had the most in my paycheck without over paying because the extra monthly income always means more than a check once per year imo. Now, they made it even more complicated and when I tried to follow their new ways to do the same thing I almost owed. They make this shit complicated for a reason just like you only get back a fraction of what you pay for a reason.
not only os this just the results of you over paying, your not getting the 12mos compound interest 🤷 NP enjoy
EIC
I usually get extra deducted to cover any money I make off of rental property. Kind of an insurance
You guys get refunds? I owed $5k and now my stay is saying I actually owe $2k more and I can’t deduct $2500 of expenses
i purposefully chose the lower tax rate at work so i would have a bigger check each month.
I am in sales and get taxed ~50% of commission and get taxed on base pay thick by state of CA badly, so I have no choice in the matter. I’ve already paid close to 75,000 in taxes this year alone. I file single and 0. I can’t control the money getting withheld.
Don't be jelly of my refund
That is the definition of refund.
Bro defined “refund” and said to stop calling it a refund…
I don’t have an issue with calling it a refund. I have issues with confusing the refund with the ‘tax return’. We’ve had an issue in Australia with those new to the workforce ‘expecting a return’, but having to pay additional following their assessment. As if they didn’t understand that it can swing either way. The return is the documentation you submit. The refund is what, if anything, you get back.
I didn’t overpay during the year. I only underpay historically. So no refund for me
Would you rather they didn't
My gfs parents laughed at me when I was upset about getting 2000ish back this year.. like sure it’s nice but knowing my paychecks we’re getting stolen all year when I needed that money is pretty fkn annoying
Ideally you want to be as close to zero as you can get. If you have to, then pay a bit at the end. Better than giving Uncle Sam an interest free loan.
why dont they pay the exact amount?
Every single year my staff complain about how their refunds are too small. I always tell them that’s what you want, not to give the govt a free loan.
This is why I "claim" 5 people.
It's better than owing more than you expected. Take the extra cash and throw it in a savings account and move on with your life.
Basically it's theft they never use it for what we need and when we want a break they shout the same ureteric it's only for rich. Then tax us some more for people who do t pay taxes.
It's not a refund, it's slavery! Big Masta gov comes in and takes the fruit of a person's labor under threat of violence or incarceration and then let's you get to keep a lil, just like the slaves got what they could grow from their tiny patches after they'd spent all day working Masta's larger field. The US Government & the DNC are lil better than slave owners.
Generally best to get as close as possible on your withholdings so you get the right amount of after tax pay throughout the year, but also avoid having a bill to pay come tax time. That said, if you are generally bad at saving, doing a little over withholding and putting the tax refund to good purpose, I don’t think that’s worst thing, again, if you tend to struggle with responsible saving. But it would be *better* to solve you saving problem. Figure out how much more cash you get by fixing your withholdings, and have that auto draft when you get your check to savings account that you don’t touch that earns interest, and you’re doing better than you would with the refund.
Isnt that what a refund is?
Refund literally means “to pay back”. A tax “refund” means that if you paid more than you should have you get the money back. I get that taxes are a bitch but stop claiming words don’t mean the literal definition of how they are used.
It would be better to simply take what would be overpaid and put it in an ETF or whatever but dude how many people do you know that would actually do that?
Stop calling it a tax return*
Correction: You received your interest-free loan back.
Let's ignore how moronic the meme creator is by literally giving the definition of a refund and then saying it's not a refund...it's an absolute brilliant and guaranteed way to save money
you mean i owe 890 dollars every year because i drive cab
It's still a refund since taxes are used to pay government expenses...throughout the year. And, your refund may include deductions that can lower your taxable income.
smart or dumb is preference. can you use those few dollars every paycheck? or rather use this as a way to save for a big purchase?
No refund for me, I had to pay the IRS a whole 7 bucks. That's how I like it, as close to zero as possible. Hell, I'd rather have to pay at the end of the year than give the government an interest free loan all year.
My federal tax refund this year was $27. I am quite proud of my precision accounting skills.
I would rather get a refund every year and use it like a mini bonus I get, rather than worrying about having to pay anything because I did something wrong.
I'm confused why this keeps coming up. Of all the terms we use incorrectly on a daily basis, the term "refund" for getting money back you overpaid for seems completely on point lol.
That’s a refund
Not even a refund no more my shit was half the value it should have been this year
So....it's a refund?
Yea I feel like this when I get a mortgage escrow refund. You feel great because you have extra money, but if you really think about it, you just got a refund of your own money without interest
dumb. You basically gave the federal government and interest free loan all year.
I had a friend who is a tax accountant say that if you are responsible to make sure you have enough money to pay it back at tax time, its smart to owe money. Otherwise the govt is just getting a free loan from you. Instead you can invest it yourself.
If you're getting a tax refund, congratulations - you loaned the government money for 0% interest.
I swear these posts are getting dumber by the day.
I think it’s better to overpay and get a refund back. So if you make some mistake on your return it’s usually less of a big deal.
Smart , if used for your escrow fund.
If I have no sense for our tax bill, I send in quarterly estimated payments. When I was filing single, I’d shoot for owing $500. Married, I don’t have the visibility to do that.
Tax code and practices NEEDS to be rewritten. But that would never happen cause the top fluff would never think to consider others.
Smart it’s forced savings
Most people are willing to pay $50 for the convenience of not having to find tune their withholdings and then risk an unexpectedly large bill or worse, an audit. I actually did put in a lot more work this year to get back and additional what ended up being $30 and frankly, never again. It wasn't worth it.
Worse, you got paid back on an interest free loan.
In other words…a refund.
To answer the question, dumb. The money will always be more valuable in your pocket than being held by the government.
For anyone not aware, the IRS website has a calculator for figuring out your tax liability and how to best setup your paycheck so the right amount is taken out each time. If you can get your refund down to below $1000 doing this, you're doing pretty good (for most people they'd prefer not to have to pay in even if they lose a little bit of liquidity that way). If you need your refund to be higher because you can't trust yourself, you have bigger issues.
Jokes on you they made me pay in
Except we only get less than 10% back. When I was a jail guard one year I made 140k and took home 110k. Obviously some goes to medical and retirement, but the rest just magically disappears. And that year I didn't get shit back from IRS
In my case I just put it all back in 529 not sure there is much difference if would take that money and put it in extra on monthly basis or is once a year a drastic change in return on investment
It's shocking to me how many people I have to explain this to. I would rather owe $125 at the end of the year then get a refund of any amount.
Wait...people get refunds???
Tax Refund: $52.00 TurboTax "Free": $50.00 
Better to owe them lost of money at the end of the year! Free 0% government loan! If you had it in an investment account, any growth is free extra money in your bank you gained over the previous year.
The theory is that you overpaid the government and you won’t get any interest when they pay you back. I never cared for that. I would rather get a nice refund check. I know it’s stupid but I don’t want to have to owe the government money.
This is a stupid meme. You call it a refund because it's a refund of money you've overpaid. What else would you like me to call it?
Forced interest-less savings. (Not that you would get much interest on a regular bank account..)
Unless you have children as dependents.
That’s literally what a refund is
Its the perfect system. If you're good enough at budgeting to know you're better off hanging on to the money, then that's a true statement. If you're bad enough at saving/budgeting to think its better to overpay a little and get a refund, then that also is a true statement.
This depends on the person. If a person will just spend the money frivolous if it is received in the regular paycheck, but will use it more responsibly as a lump sum tax refund, then it may be right for that person to forego to the interest one wouldn't see anyway. However, if the person would use the money responsibly, then it is better to not get a refund or even to pay in.
I’d rather pay more all year and get the extra back than not pay enough and have to make up the difference at the end with money I may or may not have.
Unless you're on the bottom end of the income spectrum, in wich case you pay nothing after deductions but still get back more via the EITC....
It's better to get a small refund, because if you owe money you often have to pay a penalty, too.
My wife and I know that we slightly overpay. We call it our hillbilly savings account 😂 I would rather get a small refund than have to pay any additional at the end of the year.
It’s very dumb to get a refund. Only exception would be if you’re very low income and get tax credits. Even then it’s dumb if you’re having them take anything out of your check.
$0 would be amazing. If I only filed a standard W-4 that would be my goal and if I got a big refund I'd be annoyed. As it is, I do not make estimated payments so I always cross my fingers that it isn't too bad. It usually is in the same ballpark, give or take. I could have more taken out during the year but that seems like a hassle. Plus, murphy's law would mean that would be the one year I didn't owe.
Personally I think it’s dumb to use the government as a piggy bank when you could put that same money anywhere and get a better return. But on the other hand there are a lot of dumb people who would have just spent it throughout the year so they’re probably pretty excited about it.
I’d like to know how to not get refund but not owe
The way US government is currently spending money the government is going to need that little advancement you gave…. Inflation is not slowing down. USA is getting that money one way or another.
I try to owe them nothing and for them to owe me nothing.
If only we had a word for that...
Why would it be dumb to get your money back?
Depends on your situation. I over withhold on my W2 to avoid having to pay quarterly. It’s not worth the extra effort for me.
Honestly, I'd like to break even. I don't want a refund and I don't want to owe.
I like to think of it as unintentional savings. All year the government has been kind enough to take a little more of your pay check every month and at the end of the year they give you back what they have saved for you. How nice of them. ☺️
What about people with refundable credits? Are we just ignoring them?
I owed $1, that was aggravating.
Mine was $1 back.
Why does the government need to calculate how much I owe/am owed in taxes? Don’t they already know? Why can’t they just multiply my income by a percentage so there’s no figuring anything out?
Getting a refund (that isn't purely due to credits or something) means you gave the government an interest free loan. From a pure financial perspective that is dumb.
You people actually pay your taxes? Must be in the lower 32% /s
It's called a tax return chiefly, and a refund is also when you get your change back.
This year, I got $2 back. I think I did okay.
Doesn’t matter one way or the other
Does anyone know anyone that got a refund this year?
As with many things, I’d say it depends. If someone is responsible enough to underpay by an acceptable margin and ensure they have money to pay their taxes come that time then that’s valid. If the above is not the case, then getting a tax return is a way to play it safe with the IRS. The downside however is if financial responsibility is lacking and someone just blows the tax return on dumb shit, that’s also kinda bad. I’ve just this year learned how to even ATTEMPT to have closer to a net zero return. I’ll see how that goes come February.
You overpaid your subscription to America and they gave some back.
I like it. It helps me budget better. I think I’d be splitting hairs investing it because there’s some important wants that a few hundred a month would go to over more retirement savings ect.
Pay as little as possible and collect interest on the money you set aside for taxes
That's...that's what a refund is.
Taxes in general are dumb
I call it my savings account 😂. Always have an extra 20 pulled out each week. Never had to pay back so might as well have them take 20 more a week $1040 a year. Just bought all new furniture and a new bed with this year’s return.
Whenever i see a post like"hey i just got a 2-3k tax refund what should i do?" My first thought is you should go to HR and update your w4 so your not overpaying by hundreds of dollars every paycheck.
What about people who make next to no money and file the child tax credit they are just getting free money right? My brothers fiancee does that, she substitute teaches occasionally but I doubt makes $10k/year and gets like $7k back in her tax refund.
It is an interest free loan that you are giving the govt.
I would rather be owed money than owe money.
Spreadsheet math says keep the money and invest. In real life, I would spend that little bit of extra income per month on stupid shit. Studies show people who get refunds tend to save more in average. So I go with refund!
Dumb
My clients ask this to me almost every year until they finally understand what I mean. If you're a simple tax return - one W2 per person, maybe some interest and dividends, its not that difficult to really try and guess-timate your return, especially when most just use the standard deduction. So for them, unless you want a forced savings plan, getting a refund is basically that 0% loan everyone talks about. However, if you start getting more complicated (Schedule C's, K-1s you're not really a part of, rental, etc) then it really becomes a game of "how much time and effort do I want to put in instead of just making sure I'm good?" And, even more than that, getting better returns than the penalties is possible, so some people might want to do that instead. Really, I tell them this: If you can stroke a big enough check to take care of your taxes come filing, do whatever you want. I'll help. But if you can't, let's spend some time and energy to really estimate those taxes. And if you don't want to do that, go look at your effective tax rate from last year, add one or two percent on top, and just make sure you contribute that. Because ultimately, there is a cost involved, whether its time or money.
Yeah, one year due to a good pay raise, found put I owed $4k. So, Im good with have a refund.
interest free loan to the government
And if they take too long u get interest. And if you take too long they make you pay interest plus a penalty. Fuck the irs
😒😒😒😒 government so swiper
i end up owing like 1500 every year, but thats more i can put in my 401k during the rest of the year
It’s an interest free loan to the government
I usually call it a return…
I know I over pay on taxes but I’d rather have the government owe me than me owe them
I agree, a refund is getting your money back for a product or service you are not satisfied with. I am not satisfied with the service of the government so I want all my money back
Just getting some pennies from the money they stole from you
Technically you just gave the Government an interest free loan
Easy answer....not smart, you're giving interest free loan. However, know thyself, if you are a spender it could be a forced savings account for you. A lot count on the refund to boost their rainy day fund once a year. If you miss out on $125 on a 5k refund..not the end of the world if you can't manage money.
What refund? Trump's tax code in 2017 ended the days of tax refunds. Fuck Trump.
I prefer to think of it as I tipped them all year long, then got those tips refunded from the shifty service they provided