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      02-05-2013, 02:34 PM   #17
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Originally Posted by wv128bmw View Post
I am a financial planner and can not get it through my clients head. A tax return is nothing but their money that the government held all year. Why do people still insist on a refund.

Lets put this as simple as possible. If you are not writing a check on April 15th then you messed up!!!!! ( I have a few clients that have changed - one actually last year came $20 from owing a penalty- my hero).

Op ask your tax lady how to change your with holdings to the correct amount. Then bank the difference every paycheck. At the end of the year you will have your refund PLUS interest BEFORE you do your taxes.
I am as well, and completely agree.

Change the tax withholding around so that more is coming in every paycheck instead of getting that lump sum many months later. Having more every paycheck will more likely get used for things with a purpose, like making bigger payments towards outstanding debts. But instead, people get that refund check and have the mentality that it wasn't theirs to begin with and go out and buy that big screen TV or some other unnecessary splurge... while still paying 10+ percent on that credit card balance.

After all, one of the most basic principles of finance is 'money received now is worth more than money later'.