Comments on: What To Do With That Income Tax Refund? http://studenomics.com/personal-finance/what-to-do-with-that-income-tax-refund/ Wed, 23 May 2012 15:40:24 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: MyLifeROI http://studenomics.com/personal-finance/what-to-do-with-that-income-tax-refund/#comment-2973 MyLifeROI Thu, 09 Apr 2009 18:19:44 +0000 http://studenomics.com/?p=813#comment-2973 Ramavich & Laura -- Average refund is about $2,500. At 3% for the year that is $75 in "free money to the government." For most people the security of a refund at a cost of $75 is much more appealing than the chance that they screw up their withholding and owe money all of a sudden. Would I rather owe $2,500 (and get $75 in interest) or be owed $2,500 (and lose an opportunity for $75 in interest)? I choose refund every time. And I am good at saving and not spending! Ramavich & Laura –

Average refund is about $2,500. At 3% for the year that is $75 in “free money to the government.”

For most people the security of a refund at a cost of $75 is much more appealing than the chance that they screw up their withholding and owe money all of a sudden.

Would I rather owe $2,500 (and get $75 in interest) or be owed $2,500 (and lose an opportunity for $75 in interest)? I choose refund every time. And I am good at saving and not spending!

]]> By: Laura http://studenomics.com/personal-finance/what-to-do-with-that-income-tax-refund/#comment-2957 Laura Thu, 09 Apr 2009 12:07:40 +0000 http://studenomics.com/?p=813#comment-2957 If you get a large refund that is your money that you should have had all along. The goal is to break even. I would rather owe money when I file my taxes. As long as you don't owe so much that you have to pay a penalty, that was an interest free loan from the government. I always owe a little at the end and that is perfect. It means that I am getting the maximum paycheck that I can. If you get a large refund that is your money that you should have had all along. The goal is to break even. I would rather owe money when I file my taxes. As long as you don’t owe so much that you have to pay a penalty, that was an interest free loan from the government. I always owe a little at the end and that is perfect. It means that I am getting the maximum paycheck that I can.

]]> By: Ramavich http://studenomics.com/personal-finance/what-to-do-with-that-income-tax-refund/#comment-2930 Ramavich Thu, 09 Apr 2009 00:39:51 +0000 http://studenomics.com/?p=813#comment-2930 Why would you want to get money back? That is a free loan to the government. Our goal is to get as close to zero as possible, but owing a small amount is not bad either. Something in the tax code changed this year and totally messed us up and we're getting a large refund. Probably will go towards landscaping and summer camps for the kids. Why would you want to get money back? That is a free loan to the government. Our goal is to get as close to zero as possible, but owing a small amount is not bad either. Something in the tax code changed this year and totally messed us up and we’re getting a large refund. Probably will go towards landscaping and summer camps for the kids.

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