Which is better: getting a tax refund or having to pay on tax day.
Posted Apr 19 2010 8:51am
This year I procrastinated to the very last day to finish my taxes. The main reason I procrastinated is because I owed more money to the government. Conventional financial wisdom will tell you that it is better to owe on your taxes. If you are getting a refund it means that you overpaid on your taxes during the year and are in fact loaning the government money without getting anything in return. Despite this fact, many people are better of financially by getting a refund on their taxes. For many people, (especially those with ADHD ) the extra money paid in taxes during the year would have used for discretionary spending and not used for major expenses or used to increase savings. If I had a choice I would prefer to get a small refund each year, because the more money I have available to me the more likely I am to spend a little more of it.