Juicy tax return this year? Spend wisely.
Last year the IRS doled out over 110 million income tax refunds, averaging $2,803. Another way to look at it is that collectively, Americans overpaid their taxes by nearly $310 billion in 2012.
Part of that is understandable: If you don’t have enough tax withheld throughout the year you’ll be hit with an underpayment penalty come April 15. But by over-withholding, you’re essentially giving the government an interest-free loan.
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