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.