If you’re getting money back from uncle sam, that mean you just let the government borrow your money for a whole year interest free. Instead, YOU could have been investing it and EARNING interest.
The link below takes you to a calculator that tells you how much you could have invested, saved, or paid down your debt.
So if you are getting a refund, consider adjusting your withholdings on your W2 to break even on your taxes.
How Much Did Your Tax Refund Cost You?
If you’re eligible for a tax refund, you’ve essentially given the government an interest-free loan. What if, over the course of the year, you’d saved that money, invested it in the S&P 500 or paid down credit card debt instead?