Is over paying the Government bad?

Taxes are part of every persons life.  As Benjamin Franklin once said, there are only two things certain in life, death and taxes, but everyone acts like the government is giving away free money during tax season.  That’s not the case,  they are just giving you the money back that you overpaid to them.  Most financial experts will say that it is bad to over pay the government, but I might just disagree unless you are a financial wizard or are great with your money.  My reasoning is that if you live your life thinking you need to live off of X dollars a week, but your paying an extra $40 in taxes a week (A $2080 return) you will live your life without ever missing that extra cash.  Many people would just blow the $40 dollars on a dinner, drinks, Star Bucks, etc.  So loaning it to the government could be a huge help to many people.  The big problem comes in when people decide to spend it on  a new TV, Phone, Gambling, Vacation, or a down payment on new sports car. These are horrible uses for your tax refund.  The smart thing to do would be putting it into a IRA, paying down credit card debt(Don’t build it back up after paying it off),paying principal on a car loan or mortgage.  Someone could do this with the money through out the year, but physiologically paying off a debt all at once or putting a large some of money into a IRA at once feels better to me. Plus, I may of just blew that extra 40 dollars and never have noticed I spent it if the government wasn’t keeping it in a “savings account” for me.   This year I paid off all of my credit card debt with my tax return.  Next year I will not have any credit card debt to pay off.  So I will get to invest it, but that’s a story for another time. If you get a large sum of money this tax season, just make sure to spend it wisely and your future self will thank you. If you really feel like you need to blow some money make sure to cap it a 5 to 10% of your return.  Lastly, if anyone tells you that it’s dumb to let the government take more out of your pay check than is needed  just tell them that your using the government as a 0% savings account.  Most national banks are only paying around 0.01% anyway.

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