Have you been giving the government interest-free loans each year?

It’s that time of the year again when many people sit down and pull-out boxes of receipts and tally up the year’s worth of tax credits and debits they have incurred. The question is do you pay enough, too much or too little? I would definitely seek some expert advice on this. Most of us have our employers remove taxes each paycheck and this amount is automatically remitted to the government. After twelve months this should add up to exactly what we owe, right? If there answer is no, then let me give you some things to think about. If you always give more than you should each year and then receive a hefty return each spring, may I suggest that you could do better saving your money?

Open a high interest savings account and automatically withdrawal the same amount of money each month for one year that you would have had removed from your paycheck to give to the government for tax, and depositing it into that high interest bank account. You will make interest on all of that tax for a year instead of the government. Then when you do your taxes, there will be more than enough in your account to pay what you owe the government and what money remains in your account will equal what you would have received as a return, except there will be more because you will have received interest for that amount for twelve months plus from your taxes! Why let the government use your money for a year – they don’t give you any interest for it?

Main Entry: tax

Function: noun

Usage: often attributive

Date: 14th century

1 a: a charge usually of money imposed by authority on persons or property for public purposes b: a sum levied on members of an organization to defray expenses 2: a heavy demand