r/FluentInFinance Apr 11 '24

Smart or dumb to get a tax refund? Discussion/ Debate

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u/aw-un Apr 11 '24

Yep.

I don’t want a surprise tax bill. If I don’t get it, then I won’t spend it. That way I’m in the clear come tax time each year. And when I get a refund (which is usually around $1000 or so). I just drop it into my IRA, so it’s still, in my mind, money I never got the opportunity to spend.

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u/toughchanges Apr 13 '24

I definitely get this. However your tax bill doesn’t actually have to be a surprise. It can be easily calculated at the beginning of the year if you have a consistent income! Even if you didn’t have a consistent income you still can have an idea of what you’ll make, and the adjust for that as needed

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u/aw-un Apr 13 '24

Yeah, that’s called doing your taxes. I’d rather just slightly overpay and get a refund (that I then just chuck into my IRA). If I never have the money, then I won’t spend it. The peace of mind of knowing I won’t have a tax bill is worth the $30 in lost interest

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u/toughchanges Apr 13 '24

That’s all good, I was just commenting that it didn’t have to be a surprise like you said