Friday, April 18, 2014

Did you loan money to Uncle Sam last year?

About 80% of taxpayers gave interest-free loans to the federal government last year, averaging about $2,742 per household.

That is to say, 4 out of 5 taxpayers paid too much tax during the year, and were entitled to a refund when they filed this year. says almost $200 billion was overpaid as excess federal taxes to the government last year. Yikes.

Now, at the current historic low level of interest rates, you only lost a few dollars in interest if you overpaid and got an average refund.

But still, for the nation as a whole, taxpayers gave up close to $100 million in lost interest because they didn’t fine-tune their withholding accurately enough.

If you like giving interest-free loans to the government, you know what to do this year….

1 comment:

  1. And a majority of these people actually think the gov't is giving them money and not returning theirs. No wonder we're in the mess we are in!