For many, tax refunds are like a second Christmas, but is this the right mindset to have with your taxes?

A majority of people would agree, there is nothing like getting a refund at the end of filing your taxes, but from a smart financial standpoint this isn’t the best way to approach your taxes. The financially savvy would say, “why would you give the government an interest free loan?” Instead of banking on a large refund at the end of the year, look for opportunities to keep more of your money throughout the year and put that money in an account that earns interest and makes you money over the year. One way to do this may be withholding the minimum from your taxes. This will likely lower your refund at the end of the year, but it allows you to keep more of your money throughout the year instead of ‘loaning it to the government’. This is a better way to think of your taxes and what a tax refund may mean to you. Be careful though: if you withhold too little you could face an underpayment penalty.