Comments on: 3 Reasons Why A Big Income Tax Refund Is A Horrible Thing

By: This Week in Personal Finance - January 29, 2010 | Redeeming Riches

This Week in Personal Finance - January 29, 2010 | Redeeming Riches — Fri, 23 Apr 2010 19:04:46 +0000

[...] Do you like getting a big tax refund? Bible Money Matters tells us why getting a big tax refund is a horrible idea! [...]

By: The Tax Man Cometh | Money Infant

The Tax Man Cometh | Money Infant — Thu, 04 Mar 2010 02:24:50 +0000

[...] Obviously I haven’t had the dubious pleasure of doing my first estimated quarterly tax return, but it’s right around the corner. Both Golf (my wife) and I will receive our last paycheck for the first quarter on March 19th at which time I can start to work out what the first quarters payment will be. Oh, one other nice thing about paying quarterly is that I feel there’s a very good chance that I will actually get a refund next year instead of paying in as I normally do. As long as the refund is under $1000 I won’t feel too bad about giving the U.S. treasury an interest free loan, considering the current economic state of affairs in the U.S. they could probably use it. You can read a better explanation of why a tax refund is a horrible thing here. [...]

By: Tax Refunds: Does Size Matter? | MyMoneyMinute.com

Tax Refunds: Does Size Matter? | MyMoneyMinute.com — Mon, 22 Feb 2010 10:27:45 +0000

[...] Craig Ford from Bible Money Matters – 3 Reasons Why A Big Income Tax Refund Is A Horrible Thing. [...]

By: Craig Ford

Craig Ford — Tue, 16 Feb 2010 23:26:17 +0000

@All. Sorry. I’ve been in lala land while this great conversation was happening. I’m glad to see this generated some good comments.
@FS. If someone can be more responsible with a chuck of money instead of pieces of money then I recant. However, I’m still doubtful that is true. How much would it cost to do a nation wide survey and study people’s spending habits. Perhaps with a few hundred thousand dollars we could settle this think once and for all .
@FFB. We must have the same type of friends because that is exactly the kind of stuff I hear people talking about doing with their tax returns.
@Bucksome Our bread maker just died after 10 years of use. There are no bread makers where we live overseas so we might just re-think our stance on homemade pizza.
You’re right that it is loaning money to the government.
@Ron
I completely understand your concern and I’m not sure that I would do any different. However, I’m not sure when you say you’re not really missing out on interest. I’m assuming your saying it is not much, but you are missing out on interest. If, however, that small amount of interest brings you a sense of financial peace then by all means talk the peace and forget the small interest payments.
@Jason
I know I raise excellent points (ha, ha). I completely agree that most people have trouble saving money freed up from paying taxes. To me that is a savings issue not a tax return issue. If you can’t save then either way I think this is a pointless discussion. Essentially the only question is blow it now or blow it then.
If, however, someone does save more one way or another then please don’t let me stop you from doing what works.
@Eric
Glad to hear that you are responsible with your returns. I think your probably the exception. If it’s helping you accomplish your financial goals then keep it up.
@Andrew
With low interest rates we are not talking about huge sums of money, your right.
@Alison
Having kids does always help you get a better tax rate. Sorry about the high state taxes.
@Ryan
I agree with me to a point too. Right on – though out beforehand and not done on impulse. If we could spend our money in this way everything would work out fine.
@laura
Correct. No matter how big your family is you can always adjust your withholding.
Craig Ford´s last post ..The Infinite Advantages Of Paying Cash For A New Car

By: Income Tax Refund: Is It Good or Bad? | One Money Design

Income Tax Refund: Is It Good or Bad? | One Money Design — Tue, 16 Feb 2010 11:25:50 +0000

[...] “3 Reasons Why a Big Income Tax Refund Is a Horrible Thing” Craig Ford, explains three reasons why a big tax income refund is a bad [...]

By: laura

laura — Tue, 16 Feb 2010 01:30:22 +0000

@d #7
If you work, you can adjust your withholding at work so less taxes are taken out. You don’t have to wait on your spouse to do so. But an even better idea is to send more money to retirement.

By: Best of Money Carnival: Top 10 Reads of the Week

Best of Money Carnival: Top 10 Reads of the Week — Mon, 15 Feb 2010 10:31:09 +0000

[...] presents 3 Reasons Why A Big Income Tax Refund Is A Horrible Thing posted at Bible Money [...]

By: Ryan

Ryan — Tue, 02 Feb 2010 20:09:08 +0000

I agree to a point. I think if you have a plan for your refund it can be a great thing. For example, I’m using mine as a huge extra debt repayment.

In future years, who knows my priorities may be different. The point is, making a plan for every dollar, even your refund money, and sticking to it. Using your refund money for fun stuff like vacations is perfectly fine as long as its thought out beforehand and not done on impulse.

By: Alison@This Wasn't In The Plan

Alison@This Wasn't In The Plan — Sun, 31 Jan 2010 04:26:27 +0000

Like Amy and Ron we receive a refund mainly because of our three children. So, we receive what little federal taxes we do pay and then some. We then turn around and pay most of this to our state. Funny that the federal government apparently thinks we’re barely out of the poverty level, but our state thinks we’re loaded.
Alison@This Wasn’t In The Plan´s last post ..The Benefits of Banking Online

By: Andrew @ Earn Give Save

Andrew @ Earn Give Save — Sat, 30 Jan 2010 17:04:05 +0000

We adjusted our withholding for tax year 2009, and after estimating, it still appears that we'll come away with some type of refund. I guess we'll make similar changes for 2010, and do a little more math this time! And with our credit union giving us 4% for anything under $25,000, we lost out on about $16 in interest in 2009. Andrew @ Earn Give Save´s last post ..Ask the Readers: What would you like to see here?