Do you really want a big refund?
Some taxpayers always want a big refund and want to know how other people get big refunds. The standard answer from tax preparers is to withhold more. The more you have withheld, as a general rule, the larger your refund. This is not withstanding refundable credits.
Just remember, to get that big refund you are basically giving the government an interest free loan. General agreement is that the “sweet spot” is to neither owe taxes nor receive a refund, with the more realistic aim being the range between owing $100 in taxes or being refunded $100.
Any tax planner will try to push you towards that “sweet spot” because having control of your own money is what they think you should do. But, everyone is different. Some taxpayers with stable incomes can reach this goal, and have the discipline to bank or invest the money so they are getting the use of their money over the course of the year. Some taxpayers just need the extra income for their living expenses, so they don’t invest. Some taxpayers recognize that they can make it without the extra money each pay period, but would only spend the money as it came in and choose to use their refund as an interest-free savings club. You know yourself best – you can ask your tax preparer how to best reach your goal.
