Each January, without fail, millions of people anticipate receiving their W-2 forms from their employers so they can file their taxes. The internet is filled with memes making fun of the tax refund ballers that get excited and splurge using this “free money”. I mean, who doesn’t love a lump sum of free and unexpected money from the government right?? 

Well, in reality, if you get a large refund from your tax return…then you’re not making the best decisions with your money!  

And here’s why… 

#1. Good ol’ Uncle Sam….he’s horrible with money and in severe debt. Each US Citizen has an amount of money that Uncle Sam wants us to pay….but some of us tend to pay a little bit more than necessary. This extra money is like a loan we’re giving to the government with at a 0% interest rate. Luckily, he pays us back that extra money every year at tax time…but not with any interest attached to it. So essentially, a tax return is us getting our money back that we overpaid during the year. So it’s really not free money…it was ours to begin with.  

In fact, the IRS refunded $255 Billion in 2014; which is an average of $3,000 or $250/month for anyone who filed their taxes. Which brings me to #2… 

#2. That extra money we overpaid and are so excited to get in our refund check…should have been ours to begin with. So essentially, you’re missing out on approximately $250 (or more) per month from your paycheck. I recently read a study that said 69% of Americans have less than $1,000 in their savings account. I’m pretty sure $250/mo can make an impact on people’s lives if spent/used/invested wisely. 

#3. Speaking of being wise….we all know that car dealerships and shopping malls are filled with people around tax time. That’s because you’re more likely to spend the whole lump sum because you think it’s “free money” that you can just blow. Hopefully, it’s been established that it’s not free money. Some people would still rather receive their extra money in one lump payment versus in each paycheck. Why is that? Because they aren’t good at saving money! Well, I suggest creating a budget versus having the IRS save for you. I’ll even throw in a free session to get your started on your budget. Click here to schedule a call. 

So how can you avoid overpaying each year? 

The truth is….its complicated. The tax code is over 70,000 pages and they WANT you to be confused so you can over pay. So getting to a break even point with the IRS can take some time…but you can get pretty close! Use this IRS withholding calculator, answer the questions, and you will get an estimate on how much your withholding should be from your paycheck. Each year, identify how much you were over or under, and adjust accordingly.  

Click here for the link to the IRS withholding calculator.

My personal goal is to owe less than $500 to the government and no refund. Because refunds mean we’re losing money…and I am NOT about losing and being dumb with money!! 

If you have questions or need help with your taxes, please feel free to contact me

Pam The CPA



01/16/2017 9:59pm

I am an accountancy student and I find your post very interesting. I can compute tax too. I remember my professor way of teaching for us to become a fast learner. I do really appreciate your post. I chose to study accountancy because of my father. He is now a professional lawyer and at the same time an accountant in a prestigious company.

I never thought that tax refund is bad like this. It never comes to my mind that a large refund for a tax return is not making a good decision for my money. So maybe I have to lessen my expenditures because after reading this it is already clear in my mind. Refunds are not a beneficial thing because it also makes us lose money. Overpaying is really sort of hard to distinguish. I know that car dealership and shopping malls are also the one of the most taxable. Maybe budgeting is going to be important and I have to be mindful of my spending.

05/09/2017 6:44am

Pregnant women generally cannot use earrings by the end of their being pregnant period. In essay writing this isn't acceptable to create these subject areas in essays. Regarding to medical this is satisfactory of pregnant females to use tummy rings while being pregnant period. Which means this is a good blog.

07/05/2017 3:21pm

It is very important to pay attention to your bathrooms also when you are thinking of selling your house. Designing your bathroom with the stylish bathroom furniture's not only enhance the look of your bathroom but also increases the value of your house in the real estate market.

08/21/2017 12:11am

Sometime few educational blogs become very helpful while getting relevant and new information related to your targeted area. As I found this blog and appreciate the information delivered to my database.

08/21/2017 12:16am

Hey, It really is incredibly fantastic and informative website. Good to discover your site Very well article! I’m simply in love with it.

08/21/2017 12:29am

I always replied to this blog post and its been a long time since I came into knowledge of this blog. One of my friend’s suggestion worked for me and I am still regular to read every post of this blog.

08/21/2017 12:32am

Sometimes we have to face a lot of confusion when we found different opinion of different hundreds of articles related to same question. But I think now I am close to resolve my doubts after reading this blog.

Remarkable experience earned after reading all the points of this website. I tried hard to get clue about how I could prove content of its blogs not much effective but I surrendered all my weapons just after reading it.

08/21/2017 12:36am

Impressive use of tenses as well as innovative way of writing made this blog attractive. I read this blog very carefully and found nothing unhealthy related to any fact. Well executed job.

08/21/2017 12:38am

It is really a helpful blog to find some different source to add my knowledge. I came into aware of new professional blog and I am impressed with suggestions of author.

08/21/2017 1:05am

Hello, I also would like to comment over all the points mentioned in this blog. I agree with essence of few point but somewhere I found myself on other place. I hope, there might little opinion of others as well.

08/22/2017 8:02am

Fantastic post, very informative. I wonder why the other specialists of this sector do not notice this. You must continue your writing. I'm confident, you have a great readers' base already!

08/25/2017 1:57am

I also would like to say that nothing was mitigating in this blog related to any information I already had. Even I found new information to my subject and I added them to my database.

08/25/2017 2:39am

Professionally written blogs are rare to find, however I appreciate all the points mentioned here. I also want to include some other writing skills which everyone must aware of.

08/25/2017 2:42am

I appreciate this blog to share knowledge about this important topic. Here I found different segments and now I am going to use these new tips with new enthusiasm.

08/25/2017 2:46am

Sometime few educational blogs become very helpful while getting relevant and new information related to your targeted area. As I found this blog and appreciate the information delivered to my database.

08/25/2017 2:52am

Impressive and powerful suggestion by the author of this blog are really helpful to reduce our hack-tic life. My own views are matching with author and I have experienced such.

08/25/2017 3:03am

I am grateful to you on the grounds that your article is exceptionally useful for me to continue with my exploration in same region. Your cited illustrations are all that much significant to my exploration field.This is extraordinary! It really exhibits to me where to broaden my online diary

08/25/2017 3:04am

The site is really beneficial for everyone to know about this topic. I think if you read blog than you will get some more information from blog. This is really useful blog.

08/25/2017 3:05am

Detailed and descriptive articles written in this blog is really very helpful for me as well as for other who seeking such kind of knowledge. It is definitely going to become useful in coming future.

08/25/2017 3:07am

It is worthwhile reading this blog. I was searching such kind of blog for a long time but now I think I got a blog of my interest. I am thankful for these all suggestions mentioned under this blog.

08/25/2017 3:08am

Story of this blog is well written. The writer kept in consideration the grammar very well. Level of English also very well. Lot many new words has been used while writing content of this blog.

08/25/2017 3:18am

There might some different approaches according to place or knowledge. Your skills depends on how you got an opportunity and where you have trained. Personal or professional training might distinguish between each other.

08/25/2017 3:23am

Share great information about your blog , Blog really helpful for us . We read your blog , share most useful information in blog . Thanks for share your blog here .

08/25/2017 3:24am

Obviously, the collection of a writer must be a bundle of creativity. New ideas of writing become the reason of success. It makes your work worthwhile. Everyone wants to praise your writing because they bound by creativity.

08/25/2017 3:25am

Nothing remain forever. Then why to keep same patter of work again and again. Why to repeat same strategy for very essay. Use differ strategy for different subjects because every subject has its own meaning. Keep such posts on.

08/25/2017 3:27am

our enthusiasm leads you beyond the limits. When you feel yourself enthusiastic that’s the time you can cross any limit. You seek to get perfection by using the ability of work. Read such motivational article and definitely it will help you to know new facts.

Your blog is very informative. Eating mindfully has been very hard for people these days. It's all because of their busy schedules, work or lack of focus on themselves. As a student I must admit that I have not been eating mindfully but because of this I will start now. It could help me enjoy my food and time alone. Eating mindfully may help me be aware of healthy food and appreciating food.

08/25/2017 3:38am

Share great information about your blog , Blog really helpful for us . We read your blog , share most useful information in blog . Thanks for share your blog here .

08/25/2017 3:40am

Really inspirational to hear someone pursuing their dreams and becoming successful instead of following the traditional path. I have read your article about This topic. I think it's good and impressed to know your service. Thanks for share this Information.

08/25/2017 3:42am

An author must have a vast knowledge of vocabulary. The dictionary of a writer must be full of new english vocabulary to make their work more attractive. Use of new words makes their work more valuable and graceful.

I would like to thank you for the efforts you have made in writing this article. I am hoping the same best work from you in the future as well. In fact your creative writing abilities has inspired me to start my own BlogEngine blog now. Really the blogging is spreading its wings rapidly. Your write up is a fine example of it.

It become an attractive part of a blog when author uses indirect speech while writing a blog. It shows your creative mind as well as make your written essay different from others.

08/25/2017 4:02am

I am thankful to this blog giving unique and helpful knowledge about this topic, I read your blog now share great information here. This blog increse my knowledge source .

08/25/2017 4:03am

I am grateful for this blog to distribute knowledge about this significant topic. Here I found different segments and now I am going to use these new instructions with new enthusiasm.

This blog is really helpful to deliver updated educational affairs over internet which is really appraisable. I found one successful example of this truth through this blog. I am going to use such information now.

08/25/2017 4:07am

This is actually good to read content of this blog. A is very general and huge knowledgeable platform has been known by this blog. I in reality appreciate this blog to have such kind of educational knowledge.

08/25/2017 4:09am

Here in this blog, words themselves are creating that scenario where there is a lot of mayhem and serendipity along with a silent isolation. Rarely found to see such skill and enthusiasm.

08/25/2017 4:10am

Perfect example of speculation, empathy and expression. Here I learned a new way to speculate through author’s writing. It allowed me to feel a new way to speculate your thoughts and express them in an easy and clear way.

08/25/2017 4:12am

The above mentioned matter is easy to not only understand but also explain. Even I can elaborate subject of this article now very easily because I it is easy to understand for me. Really a creative expert skill possessed by author.

08/25/2017 4:14am

There is a wonderful description of each important concern and that too in a concise manner. Author did his job perfectly. He succeeds to deliver his thoughts with best of his knowledge and I am really very impressed with his efforts.

08/25/2017 4:16am

Really a very fine way to express and looking a very pleasant article with full of healthy information. I am definitely going to tell in my class about this platform and the information shared here. Very well written.

08/25/2017 4:18am

Thanks for such a valuable and informative platform I find here. I am regular to read publication of this blog and definitely waiting for more articles.

Nice to read this publication on this blog. As far as I can see, this is a very basic question for everyone indeed. Its my personal opinion and I am completely agreed with the subject used here

08/31/2017 11:35am

Good to know this web today. I found so many useful thing here.

Comments are closed.