Personal Finance Buzz

Lots of people look forward to receiving a big tax refund each year. According to the IRS, the average tax refund will be $2,800 this year. That is over $230 a month that everyone is lending to the government interest free. If you are following Dave Ramsey’s plan like I am, that is a lot of money that could be going towards your debt snowball or emergency fund.

Your tax refund seems like found money. The only problem is that it’s not actually found money. For the most part, it’s your money — money that you’ve been loaning, interest-free, to the government.

Try to avoid paying too much in taxes. Whether it's missing a deduction or giving the government an interest-free loan, you might be paying too much. It's all about the tax-efficiency.

A refund anticipation loan (RAL) sounds like a great way to get your tax refund fast. But beware the fees that are tacked on. See what a refund anticipation loan is and some alternatives.

While many people get excited about getting a tax refund, all it really means is that you lent the government money throughout the year, interest free.