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It may feel great to get a big tax refund, but it doesnt mean its better.
The closest Ive ever seen someone get was a refund of $8; now that is spot on.
Here are three thingsyour tax refundcan tell you about your finances and what to do about it.
This means your money sits with the IRS until you get your refund.
If you get a big refund, Zigmont said you gotta figure out why.
For W-2 employees, it could mean your employer is taking too much out of your paycheck.
Check your withholding to check that it is correct, Zigmont said.
It may be as simple as you got married or had a kid and didnt revamp your withholding.
If youre self-employed or have 1099 income, Zigmont recommends adjusting your estimated tax payments.
This could also reveal missed tax breaks.
double-check you are making the most of potential tax credits and income offsets, Johns explained.
I was able to reduce a clients tax bill by contributing to her Traditional IRA.
It is hard to get it exact, but close works.
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