Too many tax refunds: The signs and symptoms of intaxification

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As the saying goes, the only certainties in life are death and taxes, and paying one’s dues to the country is among the duties any citizen must make. Paying too many taxes is common, and many citizens have found that they can save a pretty penny by getting tax refunds. But while paying too much tax than is legally required is bad, looking forward to tax refunds is a misguided and unhelpful habit that does nothing to help bolster one’s finances.

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The informal term for the euphoric feeling a person gets from receiving a tax refund is called intaxification, which is described by Investopedia as “somewhat misguided” because tax refunds are given due to an excess amount a taxpayer paid during the previous year. This is likened as an interest-free loan given to the government and paid back yearly.

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Many agree that this practice is not a good way to save and earn money as it indicates that the person is still paying a higher amount of taxes than necessary. Instead, it is recommended that the taxes paid every paycheck should be reduced through tax breaks. Talking to an experienced tax advisor or HR Department representative on matters pertaining to gradual reduction of tax burden is a key step to improving one’s financial situation.

Waiting for tax refunds is a futile and unhealthy practice that does nothing to improve one’s financial standing. While taxes are inevitable, the burden they present to the taxpayer can be lightened gradually over time.

Financial expert, media personality, and keynote speaker Matt Sapaula is committed to helping the average person save up and generate wealth. Visit this website for more on personal financial planning.