Money Tip of the Week: Tax Refunds ✍️
This week’s tip comes as a reminder from reader Jake E. about “tax refunds”.
Let’s keep it simple: A “tax refund” typically means you over-paid the government with effectively an interest-free loan. You should know it’s not free money the IRS is handing out.
Imagine if you bought a $5 coffee with a $20 bill in 2021, but didn’t get the change back until 2022. That is essentially what happens when you are getting a tax refund. In most cases, the goal should be to owe as close to $0 as possible come tax time, and to receive little to nothing in the form of a refund. As always, we recommend consulting a tax preparer or financial professional for help and questions.
Thanks for letting me help you the wise things with your money.
-Pat Zumbusch
