A new study highlights how much money you actually lose by waiting to receive a refund.
The truth is that a tax refund is simply your own money, which you earned throughout the year, being paid back because you had too much tax taken out of your paychecks. Even though you worked all year to earn the money, you didn’t actually have access to it until the following April.
highlighting tax refunds and their hidden costs. Getting a big refund in April isn’t so great after all.“Tax time is a time when people are generally very excited to get a refund, and sometimes, unhappy to be paying taxes,” said AJ Smith, vice president of financial education at SmartAsset. “If you’re getting a refund in 2020, it means that throughout 2019, too much money was taken out of your paycheck by the government and now you’re getting that money back.
As you can see below, waiting to receive your refund in April might mean missing out on savings or investment interest, or paying more interest on debt, depending on how you’d choose to use the funds if you received them in your paycheck instead.Analysis by SmartAsset shows how much money you may lose out on throughout the year by waiting to receive a tax refund. The difference is even more dramatic if you consider compound interest.
For instance, according to SmartAsset’s analysis, receiving a $5,000 tax refund instead of getting that money in your paycheck and investing it in the market could cause you to lose out on $502 in returns. That’s nothing to sneeze at. But let’s say you’ve been happily getting your $5,000 refund for 20 years.
Norge Siste Nytt, Norge Overskrifter
Similar News:Du kan også lese nyheter som ligner på denne som vi har samlet inn fra andre nyhetskilder.
Hidden Dangers of Ultraprocessed FoodsUnless you make all your food at home from scratch -- and even then -- processed food is practically unavoidable. But there are degrees of processing and research has linked ultra-processed foods to a number of health problems. What to know:
Les mer »
Here Are All The Hidden Collaborators On BTS' 'Map Of The Soul: 7'.bts_bighit has some amazing collaborators on this one!!! 💕 💞
Les mer »
'Hidden Away' ('Volevo nascondermi'): Film Review | Berlin 2020Elio Germano plays naïve artist Antonio Ligabue in the impressionistic biopic HiddenAway directed by Giorgio Diritti. Read the review here:
Les mer »
‘Hidden Away’: Film ReviewAntonio Ligabue holds an unusual place in the annals of mid-20th-century Italian art, championed by those who feel his boldly-colored, largely naive paintings are the product of a self-taught artis…
Les mer »
Berlin Hidden Gem: 'Voices in the Wind' Depicts a Sense of Connection in JapanNobuhiro Suwa’s film is based on a real nonfunctioning phone in the coastal town of Otsuchi that allows people to 'call' deceased loves and find closure.
Les mer »
Berlin Hidden Gem: 'Eeb Allay Ooo!' Depicts Satirical Look at Professional 'Monkey Repeller'Director Prateek Vats says his film about the monkey business in New Delhi, has parallels to social unrest around the world: 'It's a story about the times we live in right now.'
Les mer »