Tax refunds suck. Sorry, not sorry.
You’ve heard it before – getting a refund indicates that you gave Uncle Sam an interest-free loan.
When you weren’t earning interest in your savings account it didn’t matter.
But now that you’re earning 4 – 5% on your cash (you are, aren’t you?), you’re burning dollar bills when you get a refund.
That $3,000 refund sounds awesome until you realize you burned $150 in interest to get it
(And don’t even get me started on the fact that refunds feel like free money, so most people buy stuff with it that they wouldn’t have if they had actually saved that money.)
So if refunds are bad, what’s good?
If you pay $1 in underpayment penalties, you nailed it!
That indicates that were as stingy as you could have been.
Even BETTER – that means that Uncle Sam gave YOU an interest-free loan for the year instead of the other way around.
Real talk – As high-earning W2 employees, you pay more in taxes than anyone else in America.
You don’t need to also be loaning Uncle Sam your money.
