Lewis Howes explains why getting a tax refund means you overpaid the IRS interest-free all year. Inflation erodes the value of that money by the time you get it back. He recommends using the IRS withholding calculator to adjust your deductions and keep more cash now.
The average American is overpaying the IRS. How do I know that? Because the average American gets excited when they get a tax refund. I hate to break it to you, but your tax refund is a 0% loan that you are giving to the United States government. The government is giving you money that you overpaid to them. And because of inflation, something that costs $100 today is going to cost $103 next year. I'm effectively poorer. So how do you lower that? The IRS during the pandemic time created a tax withholding calculator. Go onto their site, see how much money you should be withholding. That way you're not overpaying the IRS.
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