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USA Today: Getting a big tax refund may not be a good thing - Monday, April 14, 2014
Eagerly awaiting your big tax return?

Well, according to some experts, your big payday this April may not be anything to take pride in.

"Often the very people who celebrate receiving a refund are those who are most in need of extra money in their pocket each month," said Gail Cunningham, a spokesperson for the National Foundation for Credit Counseling.

According to a February NFCC poll, 56% respondents "plan to always receive a refund each year," compared to just 28% who intentionally plan to "intentionally plan to never receive a refund."

Cunningham points out that a refund of $3,000 adds up to about $250 in extra taxes each month cash that may make the difference between missing a car payment or bouncing a rent check for many lower-income Americans.

And if you're not living paycheck to paycheck, you're still giving the Internal Revenue Service what amounts to an interest-free loan instead of putting your money to work by paying down debt or investing it so that cash grows.

"Why would you not maximize any asset that could work for you?" asks Chris Woehrle, an Assistant Professor of Taxation at The American College of Financial Services.

Read full article at USA Today here!

 

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