Client Resource Center

Practical answers for your questions

1450 Frazee Road, Suite 714 • San Diego, CA 92108
Phone: (619) 297-1040

What's wrong with getting a big refund?

Question: Is there anything wrong with getting a big income tax refund every year?

Answer: Yes, it means you're giving the IRS an interest-free loan when you could have the use of that money during the year to invest for yourself. 

Steps to take. As early as possible each year;

  •  Take the time to estimate your total tax bill for that year. 
  • Consider adjusting your withholding so that the amount your employer withholds comes closer to what you will actually owe on your tax return.  
  • Change your withholding at any time during the year by giving a new Form W-4 to your employer to make mid year corrections.