#Tax Refund this Year? Maybe, Maybe not

The post #Tax Refund this Year? Maybe, Maybe not appeared first on Yardley Wealth Management, LLC. There has been a lot of talk about tax refunds or the lack thereof. People are getting lower tax refunds than they used to. Sometimes they even owe money, when they never have before. The reason is fairly simple. When the government did the tax overhaul last year, they also changed the withholding schedules. Employers withheld less from their paychecks to give to the Treasury. There are a few reasons for the change. The biggest reason was to make the tax cut look bigger for political and economic reasons. Politicians like to take credit for big tax cuts, not small ones. No surprise there. As for economics, when people have more money in their paychecks, they are more likely to spend it, boosting the economy. Politicians like that too. The other less cynical reason is so that people have tax withholding that is closer to the amount that they actually owe. Getting a big refund is not a good thing unless you have an extraordinary one-off item. If you get a big tax refund you’re giving the government an interest-free loan. People do that year after year and it’s a mistake. It would be better to either owe a small amount or get a small amount back. Of course, then you might have to change other plans if you bank on that big refund or use it as a way of forced savings. My name is Mike Garry, and my company is Yardley Wealth Management. We are a fiduciary, fee-only financial planning, and wealth management firm in Newtown, Pennsylvania. (That’s in Bucks County). If you’d like to talk about this or anything else, please reach out: 267-573-1019,  mgarry@yardleywealth.net or @michaeljgarry If you’d prefer to watch the associated video, please go to Youtube and subscribe to our channel: https://www.youtube.com/channel/UCe-ma6bk1O68Tmb2sDakZpA?view_as=subscriber If you would like our other content, about one time per month, and usually a little longer, please subscribe to our E-Newsletter: https://www.yardleywealth.net/newsletter-sign-up/ The post #Tax Refund this Year? Maybe, Maybe not appeared first on Yardley Wealth Management, LLC.

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Michael J. Garry, CFP®, JD/MBA

Michael Garry is a CERTIFIED FINANCIAL PLANNER™ practitioner and owner of Yardley Wealth Management in Yardley, PA. Michael is a NAPFA-registered Financial Advisor. He is a member of the National Association of Personal Financial Advisors (NAPFA) and the Financial Planning Association (FPA).

Michael recently published his first book: Independent Financial Planning: Your Ultimate Guide to Finding and Choosing the Right Financial Planner

Michael is a frequent expert contributor to financial publications, and has also been quoted in The Wall Street Journal, USA Today, Money Magazine, Kiplinger’s, BusinessWeek.com, CNNMoney.com, Consumer Reports Money Advisor, Investment News, The Bucks County Courier Times, Financial Advisor, and other periodicals;

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