{Why you need to} be {pleased to} {get yourself a} tax refund, {not liable}

When it {involves} be tax time, people {want to} start throwing around phrases that enrage me and make me {desire to} {turn into a} cartoon hero that points at someone and ejects a roll of duct tape towards their mouths to silence them. {In my own} dreams, {I’d} {be considered a} cross between Spiderman and a librarian.

Anyway, how {frequently have} you heard this phrase?

“{In the event that you} {get yourself a} tax refund, {this means} you’ve given {the federal government} {excess amount}.”

This oft-repeated phrase assumes rationality: ‘If {you obtain} a refund, {this means} you sent {extra cash} to {the federal government}! Why {can you} let them make interest off your hard-earned money? {You need to} only send the minimum amount!’ Then {this type of person} usually {exhausted} {because of the} own self-proclaimed brilliance.

Technically, they’re right. I {reside in} {an environment of} reality, however, {meaning that} “technically” isn’t always correct. Here’s why I’d rather {get yourself a} tax refund than owe {the federal government} money:

First {of most}, if you {find yourself} owing {the federal government} money at tax time, {a lot of people} don’t have {supplemental income} lying around. {We realize} this {because they’re} horrible at managing their money {and also have} record debt rates. Sorry, it {must} be said.

Second, {just how much} interest are we really {discussing}? Let’s say {you obtain} a government rebate of $600. {Within my} high-interest account, that’s $1.50/month in interest. Oooh, {the federal government} is making bank off my money! {Get yourself a} life.

And, {actually}, people’s opinions reflect this:

…when asked if they’d {would rather} owe taxes, {get yourself a} refund or break even, none said “owe,” {based on the} USA TODAY/Gallup Poll. {50 percent} hope they break even, and 45% hope they {get yourself a} bigger refund {this season} than last.

In {true to life}, $600 that {you borrowed from} to {the federal government} would affect {your daily life} {a lot more} than getting $600 back, meaning it’s {easier to} get {cash back} than to owe it. {If you} {end up receiving} a tax refund, don’t feel bad. And don’t just follow what the pundits say. We {reside in} {real life}, and there’s {an improvement} {between your} best decision and the financially smart one.

* * *

Q: “{Think about} people taking their tax return and spending it on junk?”
A: Actually, researchers {understand that} people will {have a tendency to} save lump sums in times of economic hardship. That’s why the {National government}, which {is aware of} the psychology of consumer behavior, issued a tax refund {to occur} {several} $/month – {this way}, people just spend it.

Very {much like} {what folks} would do {should they} increased their deductions and got {a bit more} $ {every month}.

* * *

You can {find out about} the applied psychology of {profit} my book.

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