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Need a Place To Spend Your Income Tax Refund?

Jessica Lanning

If so, you need to rethink how you’re paying taxes.  The federal government pays zero percent interest on the taxes you overpay.  It may be noble to give your government free use of your money, but it certainly is not in your best interest and you are rarely recognized for the good deed.

Stop getting an income tax refund

I’m a big believer that you pay as you go, that you get good tax advice throughout the year (at least quarterly) from a tax preparer who is also a tax planner.  So long as you make your payments on time, there’s no penalty to pay and you’ve had use of your money in the meantime.  You want access to your money when you need it and not have to wait until tax season to get it back from the IRS.  I’m often amazed at how many people plan to receive a refund and have it allocated to a specific expense, like property taxes.  Yikes.  What if your taxes go up and that regular refund disappears?

Get a good accountant.  Know your tax obligation.  Pay it.  Don’t overpay.  And budget for all your expenses.

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