Whether you would rather receive a refund or owe more taxes depends on your personal financial situation.
Getting a refund means youve paid your taxes for the year and the government is giving you extra money. This can be useful if youre relying on that repayment to pay off debt or pay for a large purchase but it also means youre lending to the government interest-free.
Owing more taxes, on the other hand, means that you have underpaid your taxes throughout the year and you now owe the government money. This can be stressful, especially if you don’t have the funds to pay the additional taxes, but it also means that you had access to more of your own money throughout the year.
One way to avoid owing more taxes or receiving a large refund is to adjust your withholding throughout the year. By adjusting your withholding, you can ensure that you are paying the correct amount of taxes and that you aren’t giving the government an interest-free loan or paying more taxes than necessary.
Ultimately, whether you would rather receive a refund or owe more taxes depends on your personal financial situation and goals. You should consult with a tax professional or use the IRS’s withholding calculator to determine the best approach for you.
