The Truth About Tax Refunds ✍️ #taxes

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WHO AM I?
Hello 👋 I’m Humphrey, I used to be a financial advisor, worked in gaming/tech, and started my own eCommerce business. I make practical, rational content on investing, personal finance, the news, and much more with a data-backed approach. My goal is to help you with financial literacy and creating wealth.

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⏱️ Timestamps:
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[kyliewoeck]

I use it as a savings account I can’t touch. I’d rather over pay and get it back than owe more.

[silasrefsnider]

I agree with his statement 100 percent if you don't have kids and are supporting yourself on your own with rent and phone bills and car payments even gas. He's being real as can be I owe 50 dollars which is perfect I'm getting My full paychecks after taxes to live.

[hotflapjacksmcboogle-jdfr]

tax returns ARE a good thing, when its just your child tax credits coming in.

[ghosthin]

I mainly lower my allowance to offset any tax needed when I sell my stock.

That way, I don't have to set aside money for tax.

But yes, generally speaking, you want your tax return as close to zero as possible unless you get child credit.

[CeasarBergonia]

However, don't pay too little or the government will charge you a fee for "underpayment".

[michelleh]

I usually through it in my IRA account but it’s usually reinvested it’s better than owing. Some people just don’t have the money to pay the IRS when they owe and it creates bigger issues.

[Warbuckssss]

What's annoying... tax refunds are taxable.

[ReanuKeaves]

I received $12k in tax refund. I maxed out my Roth IRA for 2024 and the remainder I used to pay off a finance credit card. Is tax refund still a bad thing in my position?

[TranquilSeaOfMath]

Good financial mathematics in this video.

[jameshill]

I do that. I make sure I have to just pay a little at the end of the year.

[OroborusFMA]

I always owe money. Not giving politicians an interest free loan.

[pablosskates]

I’ve tried to explain to people before that owing tax is better than getting a refund. It can sometimes take a few attempts to get the point across.

[drama_killer]

I put mine in investments and this year it is going into a saving account for a down payment toward a house. Not trying to find a big chunk of money to pay the cartel I mean Feds.

[djkim]

I wish I can “zero in” on withhold. Reality is every year it’s a moving target and it is wiser and feels better to get some money back 💵👍

[GetShwiftyInHere]

I hope turbo tax didn't mess up my taxes. I paid $53 to federal last year and about $1500 to state. The company I work for messed up my tax form. I still managed to get a refund. Not disclosing the amount, but it's a helpful amount. I do have a wife and a child.

[janeaustere]

This is true but somewhat unavoidable with owning a small business depending on if the business has a profit or loss. We do aim for 0

[SonnyPreas]

I rather over pay than pay moor at end year if don't take out enough you pay moor so get your cash back

[oisinkeller]

This video isn't necessarily wrong, but it's also not completely correct. Refundable tax credits exist and can definitely wipe out all the taxes you owe and give you more money coming back, even if your withholding is set up perfectly.

Also, the W4 form doesn't use allowances and hasn't for about a decade.

[sakispsinakis]

When I do our taxes turbo tax has the option to add IRA money and see the effect. So I threw in 5K in my wife’s IRA and still got a few bucks back. IRAs are amazing if you plan to retire at a cheap place abroad. Your tax at that point will be almost 0

[laurendorronsoro]

I don’t get how you could over pay your taxes? For me my work just takes out the taxes every paycheck. Does that mean they’re doing it wrong? How is this possible l?