February 18, 2015

3 Reasons Why You Should Never Rely On Your Tax Refund As Income

It's that time of year again and everyone is racing to the nearest tax office to get their expected tax refund, but are you one that heavily relies on it as a source of income? It's a great idea, right? No! There are a lot of things that can go wrong when we rely on our tax refund as a source of income. Here are a few just to start:

  1. You have shared custody of your children  -This is a big one that most parents tend to forget. If you have shared custody of your children, you may not be able to claim them on your tax refund if your ex had them for most of the year.  Not to mention, you never know when an ex may claim a kiddo even if they are not suppose to.
  2. You didn't realize there's that new health insurance law -Yes, the president was serious when he said you must carry insurance or you will be penalized for it when income tax comes to town. And even if you didn't forget, Uncle Sam doesn't care who you are, you will still pay a hefty fee for not having insurance.
  3. You claimed more dependents than you had -Sure you get more money during the rest of the year, but you will owe the IRS when filing taxes if you don't claim zero at the beginning of the year.
Of course, the above are only a few reasons why we shouldn't rely on your tax return as a source of income. I know there are many other factors to take into consideration as well, so please think before you expect money you don't have.

Joy Smith also known as The Insane Writer, is the author of the Sci-Fi novel, The Generation. You can email her at silent_beautie@yahoo.com She can also be found on Twitter @theinsanewriter.


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