Why do so many people wait for tax refunds when they would be better off getting $0 refund and investing or saving the money they otherwise overpaid?

[Anonymous]

If you report your exemptions more accurately on your W-2, you'll only have the amount of taxes you owe deducted from your paycheck, nothing more.

This means you won't get a refund the next year, but it also means you'll have extra cash in each paycheck you can invest or save, instead of giving it to the government at 0% interest.

Even if you put it into a high-yield savings account or CD, you could be earning 3% or 4% during that time rather than nothing. So instead of getting a $10,000 tax refund, you could have $10,300 or $10,400 in the bank already.

This would be better of in a personal finance category.

[Syntosi]

The amount of time and effort you would put down to learn and dutifully fill out your taxes would be better spent doing other things such as working to earn even more or enjoying your life. Granted this has more to do with the needlessly complex and stupid tax system than making an effort in engaging with it.

[exitseven]

I always owe money at the end of the year. The government wants me to make quarterly contributions but I refuse. I do not file until April too.

[exitseven]

Thanks for the MHO

[Apple1996]

Most people are not wise and would spend that instead of saving if it went right into their regular check. Even with tax refunds many people blow them in a matter of a week or two. I personally just prefer getting a refund because it's easier to save it all at once rather. More organized that way

[KostasKouvalis]

$400 gain is NOTHING!
If the 10,000 became 14,000 it would be worth it

[Anonymous]

Because it's easier

I don't pay taxes because I don't earn enough
100% of a little beats 80% or less of just over that threshold

[Anonymous]

You must do taxes, so why not take the refund owed to you?

[NoDecision]

Because most won't do that and spend it.

[jshm2]

LOL, not how it works, kiddo.

[seeyounexttuesday]

No shit Sherlock. We need to abolish the IRS