Is Receiving A Tax Refund A Good Idea?

(NFCC) Some people wait all year long for their income tax refund when they could have had that money in their pocket each payday. These same people often are the ones falling behind on their rent or mortgage payment, car payment, and other obligations.

In recent years, the average IRS refund check has been near $3,000. This means that millions of consumers who struggle to meet their daily expenses, as well as debt payments, could have an extra $300 in their pocket each month. That amount could be the difference in losing a home or having a car repossessed.

There is a quick and easy remedy: Adjust your withholding allowances. The IRS has a calculator available on their site to help you determine the proper number of allowances. Simply go to and type in the words "withholding calculator" in the search box. Or, go to your Human Resource department at work and ask to have your allowances adjusted. This can be done any time of the year.

Consumers don't want to end up owing Uncle Sam, but they don't want to give him an interest free loan, either. In this economic environment, everyone needs to watch where their money goes. Why pay for something that you can obtain for free? The smart consumer will use the IRS tools to prepare and file their return electronically, receive their refund via direct deposit from the IRS, and adjust their withholding allowances so that moving forward they get to keep more of their paycheck.