Getting a tax refund this year? You just handed the government an interest-free loan

For those who have not yet filed their state, local or federal taxes, relax. You have time. And options.

The worst thing you could do this weekend is rush to complete the forms just to make the deadline. You risk short-changing yourself out of lucrative tax deductions.

It doesn’t matter if you make $20,000 or $120,000 a year, if you’re entitled to a tax deduction, make sure you take it.

Also, try not to look at a tax refund as a sudden and unexpected windfall. If it were me, I’d go back and see where that refund came from and try to close the loophole. All a refund means is that you gave the federal government an interest free loan for 12 months. Now, that’s just silly.

On Monday, if you can’t file you taxes on time, request an extension. However, make sure you pay what you owe by April 15. Not doing so could lead to fines.

The bottom line is that, if you’ve procrastinated, you do have options. Just make sure that you get the deductions in which you are owed.

This entry was posted in Do it yourself, Sean Adkins, Stocks, Taxes, Technology, The working world, travel, Your money. Bookmark the permalink.

One Response to Getting a tax refund this year? You just handed the government an interest-free loan

  1. To minimize the amount of the 0% loan you make to Uncle Sam, check your withholding every few months, and if it’s too much, reduce it. See Publication 505 at http://apps.irs.gov/app/picklist/list/formsPublications.html;jsessionid=ftIXGWhiD8v4w85qZz7ZWw__?indexOfFirstRow=50&sortColumn=sortOrder&value=&criteria=&resultsPerPage=25&isDescending=false.

Leave a Reply

Your email address will not be published. Required fields are marked *


*

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>