Yes, I know, receiving this HUGE tax refund at tax time is exciting. However, it is not the ultimate goal of tax time. The goal for tax time is to not owe and to basically keep your money. However, this should also be your goal for the entire year.
Do you understand what I mean? If not, watch the video below real quick to help you grasp what I am saying.
The money that you receive as a refund could have been in your bank the entire year collecting interest. All you need to do is make a few changes to your W-4 to make this happen. And, with the new W-4 that the government rolled out a few years ago, it is even easier to make those changes.
So, if you find yourself getting a huge refund every single year, you may want to decrease the amount of money that is taken out at tax time to increase your income. And vice versa, if you find that you owe every year, you may want to increase the amount of money that is taken out, which may decrease your income a little but you will not owe at tax time.
If this still doesn't quite make sense to you, feel free to reach out to me and I will explain it to you a little further.
The goal is for you to come out on the winning side.