Quote:
Originally posted by Aurel
No, and that does not seem right. It means that not only the govt. would be earning interest on your overpaid taxes of the present year, and then tax you again for the next year on that same money they already gave back to you.
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You got it. That is why you should adjust your withholding to make sure you get zero refund each year or owe a little. Everyone gets excited about a tax refund when in reality all you have done is give the government an interest free loan for a year...
This year I am getting $7k back but that is because my wife quit working 4 months into the year so we lost a big chunk of income.