Good Refund=Bad Taxes

Boy do I love it when my friends at the IRS mail me that little something every spring. As a teenager, I used to look at my tax refund as a little bonus pay check. After meeting many people of varying levels and concentration of education, it’s interesting to hear what people think about their income tax refund.

Talking about refund is essentially a discussion about income tax. We are taxed proportionally on how much we make; joyfully doling out a percentage to the Federal Government and States. While most people realize this much, they often fail to see the importance of filling their information correctly with the IRS. We do this in too stages; first when we are initially employed, and every spring when refund forms are filled based on records from our employer.

Many people I have met file incorrectly, with the specific intention of receiving a little more during refund time. They do this because they enjoy the notion of a “bonus check”, one that often comes at a good time. What these folks may not realize, is that they have essentially established a savings account with the IRS. Every cent you receive in a tax refund is yours by right, you would receive it up front if you filled correctly. This “savings” method is the less-savvy method, as you may not have your money when you need it.

What we should also consider, is that the IRS is run as a profitable business….like a bank. This means that they don’t care if they profit from your mistake…..actually they prefer it. That’s why the IRS doesn’t go out of their way to ensure everyone files correctly (they take your money with a smile).

As a college undergrad with a really tight budget, and no love for the IRS, I urge you to be mindful of your financial decisions. Keep your money where it belongs, in your paycheck.

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Published in: on February 20, 2008 at 4:47 am  Leave a Comment  

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