Have you started your 2015 taxes yet? Here’s why you should and why you should never want a refund.
Besides the fact that you’re giving the government an interest-free loan, there’s another very important reason why you don’t want to receive a large tax refund: fraud. It’s becoming increasingly common for people to file fraudulent taxes by stealing social security numbers. They complete the taxes in such a way that it produces a large refund. If you file your taxes after someone has fraudulently filed in your name and SS number, it can take more than a year for it to be resolved. If you’re counting on that refund, you’ll be waiting a long time to get it, as the IRS is simply too short staffed to quickly resolve these issues.
If this hasn’t convinced you and you’re still determined to get a refund each year, please ensure that you’re in a position where you aren’t dependent on that money. Based on my own experience, there are some years where you can’t help but get a refund no matter what your withholding is so I realize it’s not always a choice.
To learn more about this or if you’re a victim of tax fraud, check out this Clark Howard article.
Do you like to receive a tax refund? What do you use the refund for?