Loaning the Government Money for Free

The Motley Fool recently published a post titled: "Getting a Tax Refund? Here's Why That's a Bad Thing".
Following are a few points from it.
  • Don't let fear hold you back: That fear might be hurting your finances. Instead of paying down your credit cards you are overpaying taxes. Imagine how much richer you could be if you invested that money.
  • Avoid temptation: Large tax returns tempt the best of us to spend it on vacations and large purchases. In reality, had you been getting that money in your paycheck all along, you could've found a more responsible use for it
While many of us are inclined to believe that getting a refund at tax time is far better than owing money, in reality, owing a small amount isn't necessarily such a bad thing. If anything, it means that you, not the government, got to benefit from an interest-free loan, which is actually a pretty sweet deal when you think about it. [read the post in full here]

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