If that is the only way you can save you money then a tax refund is good idea.The problem is the IRS does not pay interest for holding your money for more that a year. (14 to 16 months to be more accurate). I don't think people realize that the refund money they get back is nothing more than them getting change back from paying to much in taxes. This is a normal practice for more than 85 million people averaging more than $2,200 back from the IRS (that's a lot of change). To give you an example of how crazy this really is lets look at this from a different perspective. If you go to grocery store every month to purchase your food and other items and you always over pay for the food. Instead of the cashier giving you back your change she/he keeps it. Now lets say you do this for 15 months and then on the 16th month the cashier gives you all your change, all 16 months worth. If you were to tell and friend or family member you did that. They would probably have you committed. Yet we think it is perfectly fine to allow the IRS to give us back our money when they feel like it.
How about getting a tax refund in your pay check every paycheck? Make some adjustments to your W-4. Look at your deductions, consider your circumstances and above all consult your tax professional/accountant.
It is your money shouldn't you decide when you get it?
I would like to thank another one of my indirect mentors, Mr. Daniel J. Pilla. Because of his book "How to lick the IRS with postage stamp", I was able to handle my very first tax issue back in 1994 with an abatement letter.
Remember tax preparation is an annual event, plan accordingly and happy tax season.
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