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    • Did you get a big income tax refund?

Did you get a big income tax refund?

8:30 PM  Pisstol Aer   Labels:
Three-quarters of taxpayers overpay Uncle Sam; the average federal income tax refund last year was $3,003!  I know that economic psychologists tell us people love to get those refunds of overpaid taxes; they feel like it is a windfall. But it is totally irrational. (I wonder how many tea party-ers over pay their taxes.) If you carry a balance on a credit card, it's crazy to over pay your taxes! Reduce your withholding and direct those funds to paying down that high interest debt faster.  If you don't have a substantial emergency fund, reduce your withholding and set up an automatic deposit to an online savings account as a painless way to save. No Roth IRA? T. Rowe Price will let you start an individual retirement account with as little as $50/month with an automatic investment plan. Unfortunately, too many consumers splurge on consumer purchases with their refund money (note all the advertising to get you to use your refund to buy furniture, TVs, etc.) rather than investing it to secure your future. Nag, nag, nag... don't be a bag lady in your old age!

Adjust your W-4 withholding using the website: http://www.irs.gov/individuals/article/0,,id=96196,00.html
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Did you get a big income tax refund?
Did you get a big income tax refund?
Reviewed by Pisstol Aer
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