Question

Why you should be happy to get a tax refund, not guilty

When it comes to be tax time, people love to start throwing around phrases that enrage me and make me wish to become a cartoon hero that points at someone and ejects a roll of duct tape towards their mouths to silence them. In my dreams, I would be a cross between Spiderman and a librarian.

Anyway, how often have you heard this phrase?

“If you get a tax refund, it means you’ve given the government too much money.”

This oft-repeated phrase assumes rationality: ‘If you get a refund, it means you sent extra money to the government! Why would you let them make interest off your hard-earned money? You should only send the minimum amount!’ Then these people are usually out of breath because of their own self-proclaimed brilliance.

Technically, they’re right. I live in a world of reality, however, which means that “technically” isn’t always correct. Here’s why I’d rather get a tax refund than owe the government money:

First of all, if you end up owing the government money at tax time, most people don’t have extra cash lying around. We know this because they are horrible at managing their money and have record debt rates. Sorry, it has to be said.

Second, how much interest are we really talking about? Let’s say you get a government rebate of $600. At my high-interest account, that’s $1.50/month in interest. Oooh, the government is making bank off my money! Get a life.

And, in fact, people’s opinions reflect this: …when asked if they’d prefer to owe taxes, get a refund or break even, none said “owe,” according to the USA TODAY/Gallup Poll. Fifty percent hope they break even, and 45% hope they get a bigger refund this year than last.

In real life, $600 that you owe to the government would affect your life far more than getting $600 back, meaning it’s better to get money back than to owe it. So if you end up getting a tax refund, don’t feel bad. And don’t just follow what the pundits say. We live in the real world, and there’s a difference between the best decision and the financially smart one.

Question:

1.    After reading this article on Tax Refunds and comparing it with your other reading on Tax Refund, what do you see as the contrasting opinions of the two authors?

2.    Why is it better to get a Refund than to Owe the Government Money?

Answer 1

1. this article is more morality base compare to others. here the author used his basic common sense and his concern about one of the important aspects of the economy. he tries to enlighten the fact about tax payment, which is a big contribution to the economy. as a rational citizen to a country, we should be dutiful and responsible towards the country's economic growth we should not bother about the tax payment. if we are rationally paying tax then it will help the nation to develop the backward people and invest more in welfare aspects. indirectly it will help us to develop our own economic condition. the author is more thoughtful and sensitive towards the payment and strongly object owing to the country.

2. it is always better to get a refund rather than owe the government money. if we pay the tax on the time it will also settle our own financial planning which will be good for our financial status. it will reduce the loan amount. financial management will be better. more of all we will not be in fear, that how much we need to pay to government on behalf of tax. so over all when we get refunded some money it gives a feeling of bonus. so it is better to pay tax on time without owing to government.