Free Money from the Government?

The new year brings with it another new tax season. For some, this is annoying or even frightening. For others, it's a blessed event. What? Ah, of course, the tax refund. It's like getting free money from the government! At least that's what some folks think. I disagree.

I personally hate tax refunds. A tax refund means that the government has held my money and hasn't paid me anything for that privilege. I'd much rather have that money in an ING account earning some interest.

Don't get me wrong, I don't like to owe taxes either. My ideal world is where April 15th rolls around and the government and I agree that I've paid enough throughout the year, thank you very much.

I can't exactly have the ideal, so my goal is to get as close to it as I can. One of the ways to do this is to adjust withholdings on form W-4 at work.

I like to review my withholdings once a year and make any changes to account for any surplus or deficit in taxes collected. It's super easy to do. Just speak with your friendly neighborhood HR department.

Special note: This isn't for everyone. Some people that don't feel like they are disciplined savers would much rather have a refund in than have to come up with money for any tax deficit. If you know your weaknesses, this is probably a wise move.