Are you Looking for a Large Refund?

[rorich]

Most people can't wait to file their income taxes in anticipation for a large refund. Chances are these are the same people who are quick to complain of the amount of taxes withheld from their paychecks each pay period. Many people seem to consider their income tax refund as found money. This is indeed a misnomer. The truth is, getting a refund check just means that the government has borrowed money from you the entire year, interest-free. In essence, you've given the government an interest-free loan. This is your hard-earned money to which you should have had access to throughout the year. The average refund is roughly $2500. Imagine your refund is $1,200. If you had adjusted your withholding to get an extra $100 per month and put that $100 in a high yield savings account, for example, you could have pocketed more money.

[bluecobia]

I am hoping for a small refund. I adjusted my deduction to try to make it that way. I do not like giving the IRS more money than they deserve. However sometimes it is hard to estimate from year to year how much you need to have deducted. The fluctuating stock market and house sales and purchases can have a major effect.

[Xin Lu]

I also try to get my refund to be as close to zero as possible, but my hubby likes a huge refund so he can feel like he got a bonus. He also blames me for making his refund smaller this year because we got married and we have to file jointly.

[rstlne]

I'm actually going to owe the IRS money when I file my taxes. I paid just enough in estimated taxes to avoid penalty and I earn interest on the money that I put away to pay the balance of my taxes.

[changed4life]

IRS refunds are a great option for savings or paying down debt for those individuals who are not regimented in taking money from their paycheck and investing it. If these same individuals have this extra money in their possession, they sometimes blow it on nonessentials and then what?

I personally love the big tax refund. We always get back at least $8,000. Some of you are cringing right now, but I find it is great to allocate it into my emergency fund or for something like a much needed vacation.

[Megan]

Personally, I just hope to break even. I ended up owing money the last two years (but not much, under $100 both years, I believe). But I think I would rather owe a little bit than get a ton of money back. Why let the government have my money interest free?

[purplefdu]

I used to get back roughly $500 while in college based on the newer rules for students. I get back roughly $300 while working, but since I'm not working I don't anticipate getting anything back. My husband will probably get back roughly $300 from his taxes. We also try to not pay or get back anything. We would of course rather get back than pay though so we do have slightly more than necessary taken out.

[Caitlin]

I'm probably the only person in the whole world who doesn't mind giving the government an interest-free loan. I'd rather contribute to good roads, schools, and health care than a couple extra dollars in my own pocket now rather than later. I know I'll get it back as a refund, and I can put it into a HYSA then.

That said, I do try to reduce my deductions to reduce the size of my refunds.

[MSMomsmoney]

I intentionally have very little taxes taken out of my paycheck--and expect to either break even or be within $100-$200 of breaking even with the IRS.

I don't need to give the IRS an interest free loan.

[Rebecca]

This year I'm hoping for a large refund. But only because I'm in some desperate need of cash right now to put towards my credit cards. Usually I break even or get very little back, which I now know is a good thing.