Tax refunds: why it’s much better not to get one
It’s tax season, a time when many people’s thoughts turn towards their tax refund and what they’ll do with it. Should you put it towards your mortgage, add it to your RRSP or make a TFSA contribution?
While many financial institutions often recommend one of those options, we might suggest a different one: don’t get a tax refund at all.
This may sound counterintuitive; after all, isn’t it great to receive a big tax refund, which you can use in so many ways? Not necessarily; let’s take a look at why it’s better not to get a tax refund and instead receive extra money in your paycheque, throughout the year. We’ll also look at how you can reduce your at-source tax deductions and what to do with that extra money.