Tax Refund

I’m no “Taxamatician” (yes, that was a joke), but isn’t a tax refund simply a REFUND of money you overpaid?

This CNN article entitled 5 Ways to Spend Your Refund shows the sentiment in America to blow your refund. According to my knowledge, this is equivelant to:

Buying $5 worth of candy with a $10 bill. When the cashier hands you back $5 in change, you think, “Hey! Free money!” and go spend it.

When you overpay for your taxes and then get some of it back, you aren’t “getting” free money. If you are going to blow your tax refund, blow it on something CRAZY like paying off debt or starting a new savings account!

Blog posted on: March 29, 2005

4 comments on “Tax Refund

  1. Josh

    Amen. I am preparing taxes this season. My employer has me working in a used car lot. People can file their taxes and ‘spend’ their refund on a down payment for their ‘new’ car. It amazes me how many of these people do not understand that a big refund means that the government took too much money out of their pay checks. It is also funny to see people think that by having an extra $10 taken out of each paycheck, so that your refund is $520 higher, is a smart financial move.

    Reply
  2. Neville

    Josh,

    It seems car dealers are the catalyst that make everyone think your tax return is free money.

    I can’t even tell you how many “Come use your tax refund for a new car” ads I’ve seen!

    Reply
  3. Daniel

    Hi-Great blog!!! Really great info~ in reply to this, you might find this http://www.usa-car-donation.com very interesting!! I did and so did some other friends of mine..really helpful..and interesting. Know anything about it??? I’m curious to understand a bit more. Thanks!!!

    Reply
  4. Lisa

    can someone please tell me where i can find a dealership that will do my taxes and put my refund towards a car?

    Reply

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