Skip to main content
  1. News
  2. Business & Finance
  3. Personal Finance

Money health 2014: Say 'no' to a tax refund

See also

Many in the Capital Region, as elsewhere, have been told all their lives that it is more blessed to give than to receive.

That's generally true, but not when it comes to your tax situation. In this case, it's better not to receive a tax refund.

"When I get a tax refund, I'm going to pay off some bills," is a common phrase heard often. People pray for a tax refund. Take the advice of experts: Don't do it and here's why:

  1. If you get a tax refund, you have overpaid your taxes and lent your money to the government at no interest.
  2. The financially smart thing to do is to adjust your W-4 form so that you receive more money in each paycheck. (The average overpayment per family, per month is $260).
  3. Redo your W-4 form, the form you completed on your first day on the job.
  4. Consult with your tax advisor or visit www.irs.gov, to learn how many exemptions you need to take in order not to overpay your taxes.

If you want the "windfall" of a refund check, have your extra money deducted regularly from your checking account into a mutual fund account. Earn a decent rate of return for yourself, not for the government.

Want to learn more, subscribe (above) to future articles. For a free book on your money, contact Dave Balog at 355-0967 or 646-667-4254 (cell). dbalog99@gmail.com

Advertisement

News

  • Mt. Everest avalanche
    Disaster strikes Mt. Everest as at least 12 people were killed in an avalanche
    Video
    Watch Video
  • Most Earthlike planet discovered
    The Kepler telescope has discovered the most Earthlike, possibly habitable planet yet
    Space News
  • Easter crosses create debate
    Easter crosses spark a debate of separation of church and state in Ohio
    Headlines
  • Chelsea Clinton is preggers
    Former first daughter Chelsea Clinton is pregnant with her first child
    Headlines
  • Stanley Cup playoffs
    The battle for Lord Stanley's Cup is on, don't miss a minute of playoff action
    Sports
  • Ukraine discussed amongst U.S., E.U., Russia
    The U.S., E.U. and Russia agree on ways to diffuse the tension in Ukraine
    Video
    Watch Video

Related Videos:

  • Earn money working out
    <div class="video-info" data-id="205910267" data-param-name="playList" data-provider="5min" data-url="http://pshared.5min.com/Scripts/PlayerSeed.js?sid=1304&width=480&height=401&playList=205910267&autoStart=true"></div>
  • Kids and money smarts.
    <div class="video-info" data-id="517735244" data-param-name="playList" data-provider="5min" data-url="http://pshared.5min.com/Scripts/PlayerSeed.js?sid=1304&width=480&height=401&playList=517735244&autoStart=true"></div>
  • Budget tips for spring break
    <div class="video-info" data-id="517855762" data-param-name="playList" data-provider="5min" data-url="http://pshared.5min.com/Scripts/PlayerSeed.js?sid=1304&width=480&height=401&playList=517855762&autoStart=true"></div>

User login

Log in
Sign in with your email and password. Or reset your password.
Write for us
Interested in becoming an Examiner and sharing your experience and passion? We're always looking for quality writers. Find out more about Examiner.com and apply today!