The Tax Refund Check
01.Uncle Sam's Payback
If you file your taxes and find out that your employer withheld MORE money from your paychecks than you actually owed, the IRS will send you a check for the difference. This check is called a tax refund.
02.An Annual Bonus
Many families get a tax refund check of several thousand dollars in the spring. It feels like a big bonus! People often use their refund checks to pay off debt, add to their emergency savings, or save for college.
03.The Zero-Interest Loan Trap
While getting a refund check is exciting, it actually means you loaned your money to the government interest-free for a year! A perfect plan is to withhold the exact amount of taxes you owe so you keep more money in your paychecks every month.