Current Events > Your tax refund is an interest-free loan to the government.

(+) Yeah! (+)

Some basic reading here for the apologists, if you do exist (I doubt many do):

https://www.investopedia.com/terms/t/timevalueofmoney.asp

https://www.mymoneycoach.ca/blog/why-you-do-not-want-an-income-tax-refund-next-year

Essentially, money in your hand is worth more due to the interest-earning potential it has for you. Instead, you give it to the government, they earn interest/other opportunity cost savings from it, they keep that interest, and then they give the refund back to you the next year.

Yes.

No lies detected

Which would be completely fine, if they actually used it all for necessity.

pretty much.

fix your w4 folks.

The whole game is to get to 0.

if you didnt you lost.

This is why not reporting tips and side hustles is moral as hell unless you are quite wealthy in which case fuck you.

Unsuprised_Pika posted...

This is why not reporting tips and side hustles is moral as hell unless you are quite wealthy in which case fuck you.

I don't know anyone IRL that is against getting money off the books. We all know that rich people do it to an extreme that breaks everything under them apart.

Personally the ease of use of not having to sweat whether I'll need to pay in or not at the end of the year is worth letting them beat me out of maybe $20 interest a year

Most people are keeping that thousand or whatever in their bank account where they are earning pennies

then when they do get that money back, its a fun surprise they can use to splurge on something

/r/Im14AndThisIsDeep

chrono625 posted...

The whole game is to get to 0.

if you didnt you lost.

well, the thing is, it's out of a lot of peoples' hands. Bookkeepers and payroll compliance practicioners will just automate it based on a level of tiers. Using a one-size-fits-all approach for people with different salaries.

In my opinion, if it's $500 CAD or less ($400 USD or less), then your payroll person did a pretty good job. If you're bragging about getting thousands back, you really should be sulking that you lost hundreds of dollars in potential interest. Or, hell, just used that money to buy shit earlier than later. Things like buying a PS5 at launch is of value to people vs doing it a year later with a return. The opportunity cost of leisure is a thing, too

TheGoldenEel posted...

Most people are keeping that thousand or whatever in their bank account where they are earning pennies

that's true, yeah. Probably the same reason why a lot of people don't know about the TVM concept.

You'd have pretty precise with a relatively low income to take advantage of no refunds, because anything more, (and even lower with state taxes in many states), and you will become subject to quarterly tax payments 4x a year, in advance.