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Tax Refund or Tax Bill

Would You Rather Get a Tax Refund or a Tax Bill?

I had a conversation with a girlfriend last night about her W-4 withholdings — she wanted to make sure that she wasn't paying too much in taxes throughout the year because of an incorrect withholding election. Understandably, she doesn't want the government holding on to her money during the year, making interest on it and then ending up with a tax refund.

If you're having too much tax withheld, money that could be earning you interest from investments or a high-yield savings account instead isn't working for you at all. But some taxpayers are uncomfortable with the prospect of owing taxes if they've underpaid throughout the year. Where do you stand?

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freegracefrom freegracefrom 7 years
I usually get a moderate return. (Not this year though, ouch.) As much as I would like to get a big fat check mid-next year, I'd rather have the extra money throughout the year.
JessieSP JessieSP 7 years
Everyone loves a tax refund :)
ccsugar ccsugar 7 years
I know receiving a refund is bad and the government has been taking interest on that money... But... I LOVE getting that check every spring!! I already know what I'm going to get with my refund this year: a new TV!
emalove emalove 7 years
I've always gone for the fat tax refund and will continue to!
LaLaLaurie06 LaLaLaurie06 7 years
I hate taxes and think they are dumb. The government withholds a lot of money and last year I got some money back, which was great. I didn't change anything and now I owe a bunch of money. I'd rather the government just take that upfront instead of taking it all from me at one time during tax season. I'd also like it if we did away with taxes until the government could figure out an easier way for people to file and actually understand what the heck they are doing, but I guess that's not going to happen.
popgoestheworld popgoestheworld 7 years
I think that sometimes people tend to spend what they have and aren't, well, savvy enough put aside the extra money into savings. For people like that, it's just better to have the government take out extra money and then they get a bonus at the end of the year. I always end up paying at the end of the year, but I don't have a spending problem so it works out fine for me. I think it truly depends on personality, which option is best.
supercoolnat supercoolnat 7 years
The IRS has a calculator on their website that helps you figure out how much you really should be withholding. It tells you the allowances you should claim, as well as any additional amount you should withhold. It appears to be a lot more accurate than just using the W-4 worksheets. http://www.irs.gov/individuals/article/0,,id=96196,00.html
ktownpolarbear ktownpolarbear 7 years
i'd feel really uncomfortable owing taxes, b/c the IRS has such a scary conotation to it. i'm already in enough debt, don't want to add to it.
SkinnyMarie SkinnyMarie 7 years
bran I asked the same question. If PA can do it, why can't the feds?
bransugar79 bransugar79 7 years
I'm always so afraid that I will end up owing the government money. So I don't claim any dependents and just get the money back as a refund. I also wonder why they can't just take the right amount in tthe first place does anyone understand this? I've been workign and paying taxes for over a decade and I still don't understand all the rules.
ilanac13 ilanac13 7 years
that's a hard one. i personally would rather get a lot of money back with my taxes becuase i feel better about getting money to pay off things all at once, but i know that it's better to get no refund at all. you don['t realize how much money they take from you during the year, and how much more you could be seeing in each check if you had the right amount withheld. such a double edged sword.
Lovely_1 Lovely_1 7 years
Fat tax refund hahaha! It's an easy way to save your money...well for me anyways... It's liek unexpected money that I just drop into my savings :P
Martini-Rossi Martini-Rossi 7 years
I hate getting a tax bill and I also hate the government taking too much taxes out my check - I need every penny! I would much rather get nothing.
JessLehry JessLehry 7 years
I always end up with a fat refund every year- it's something I look forward to receiving, and usually have something picked out that I want to purchase with the money! This year, I'm getting my biggest refund yet, and I'm gonna get an iPhone! And then put the rest towards my student loans!
SkinnyMarie SkinnyMarie 7 years
What I don't understand is why they haven't been able to take out the perfect amount? My state takes out the correct amount, to the penny, every year so I do my taxes and send back the form saying 0.00.
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