What does a tax refund mean to you? I am often surprised to hear that people are shocked when their refund isn’t HUGE. Of course, we all want refunds but really what is a refund?
A refund generally happens when you have paid more in taxes throughout the year and/or you had lots of deductions and tax credits that you qualified for (which weren’t taken into consideration when the taxes were withheld from your income) so the amount of tax you paid is more than you actually should have paid.
Furthermore, if you didn’t pay any tax during the year, how do you expect to get a refund?
Again, we all like refunds but I personally would rather keep the money in my pocket throughout the year, invest it or spend it as I please, and hope for break-even when I file my taxes once a year.
What would you prefer: having a big refund or having the choice with what you do with your money throughout the year?