Is Your Large Tax Refund a Good Thing?
Is Your Large Tax Refund a Good Thing?
What’s the best part of tax season? When it ends, right? Well, for many taxpayers that might be the answer. But for millions, the fact that they get a large refund is probably what comes to mind. A big tax refund might seem like a great thing on the surface. Who doesn’t like to get a bunch of extra money?
The problem is, in most cases, that money is not really extra. The fact is it’s actually money you could’ve had at your disposal throughout the year. It’s money you could’ve used for several other things, including savings or investing.
Instead, that money goes to the government, which can then collect interest on it. That means you’re not collecting interest on it, or using it for anything else. Just think of how useful that extra money might be if you have an emergency come up during the year. It could make a huge difference in your overall financial picture.
If you’re refund is large, you would be smart to make some adjustments in order to reduce it. Start by checking your W-4 to make sure your withholding amount is accurate. You don’t want your employer to withhold too much, or too little.
Once you start seeing the extra money in your paycheck, you shouldn’t go out and blow it. It’s smart to put that extra cash into your savings. That will give you a safety net in case of an emergency, or in case you haven’t withheld enough.
We hope you found this article about “Is Your Large Tax Refund a Good Thing?” helpful. If you have questions or need expert tax or family office advice that’s refreshingly objective (we never sell investments), please contact us or visit our Family office page or our website at www.GROCO.com. Unfortunately, we no longer give advice to other tax professionals gratis.
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Alan Olsen, is the Host of the American Dreams Show and the Managing Partner of GROCO.com. GROCO is a premier family office and tax advisory firm located in the San Francisco Bay area serving clients all over the world.
Alan L. Olsen, CPA, Wikipedia Bio
GROCO.com is a proud sponsor of The American Dreams Show.
The American Dreams show was the brainchild of Alan Olsen, CPA, MBA. It was originally created to fill a specific need; often inexperienced entrepreneurs lacked basic information about raising capital and how to successfully start a business.
Alan sincerely wanted to respond to the many requests from aspiring entrepreneurs asking for the information and introductions they needed. But he had to find a way to help in which his venture capital clients and friends would not mind.
The American Dreams show became the solution, first as a radio show and now with YouTube videos as well. Always respectful of interview guest’s time, he’s able to give access to individuals information and inspiration previously inaccessible to the first-time entrepreneurs who need it most.
They can listen to venture capitalists and successful business people explain first-hand, how they got to where they are, how to start a company, how to overcome challenges, how they see the future evolving, opportunities, work-life balance and so much more..
American Dreams discusses many topics from some of the world’s most successful individuals about their secrets to life’s success. Topics from guest have included:
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