With all the tax talk going around this week, let’s look at some common-sense tax considerations. Are Tax Refunds Good? First, if you got a big refund, you just loaned the federal government your money for free. Far better to break even or owe a little. What??? That’s right. When your money is in your hands, you can invest, pay down debt, or save it on your own terms. This could benefit you financially. When you give the federal government excess money, they use your money to finance their projects. It’s best to adjust your deductions with your tax advisor’s help so that you keep your money under your control. I set aside the money in my own “tax fund” for possibly owing to the government on tax day rather than letting them use my money for free all year long. Does Moving Save Your Tax Bill? Many Americans are moving to other states to save on taxes. States can tax you to run the government in any (or all) of these three ways: property tax sales tax income …
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