People. A tax refund is not a bonus.
Nothing irritates me more than when I hear someone at tax time exclaim;
” I got so much money back on my taxes! “
A tax refund is not a bonus! For those of you that don’t know a refund is defined as: ” pay back (money), typically to a customer who is not satisfied with goods or services bought. Synonyms: repay, give back, return, pay back…” You get the idea.
That’s right, it is your money honey! Money that you just loaned to the government. Money you loaned them interest free for the entire year! It is actually money you could have had earning you interest in an investment or savings. Think of it this way, if you purchased an item in a store and were overcharged would you want to get your money back? Most likely you will say yes! So what is different about taxes?
Here is a tax tip for you…
Check with your employer to see what is coming off for deductions. If you started working for an employer when you were young and single your circumstances may have drastically changed since then. You may be able to update that information to have less tax taken off of each cheque. (PS it is called a TD1 Form)
Want to loan the government more money? Feel free to ask your employer to take off more of each cheque then you’ll be getting more back at the end of the year! (That is a joke people…read the above paragraph again.)
$40-$400 a month might not sound like a lot of extra cash but if you start investing that money now you’ll have more money to retire with! Now I don’t know about you but I look forward to retiring early with more money. Is there a downside to that?
So if you get a big refund this year please remember, it is the government giving you YOUR OWN MONEY BACK. For a few ideas on how to spend your tax refund smarter check out my blog about 5 Smart Ways to Spend Your Tax Refund