If you get a Tax Refund, you are loaning the government money for free!

Just thought in the Spirit of taxes, I would post this brief explanation of Income Tax witholding. A nice quote from the article:

"Ideally, the amount of income taxes you have withheld from your income is equal, or close to equal, the amount of taxes you will owe for the year. If too much is withheld, a refund may be appealing but remember that a refund has a hidden opportunity cost: Instead of you earning interest on your income, you're making an interest-free loan to the IRS!"


The article is posted by H&R Block and can be found here