And you thought you were done paying taxes
Just because you sent in that check to Uncle Sam (or you are expecting a check), you think your dealings with taxes are over for the year, right?
Wrong.
While it's true you've paid your Federal income taxes, then there are lots of other taxes. Gas taxes, property taxes, wheel taxes and so on. I hope you're sitting down, because your knees will get weak after this one.
If you paid all of your taxes up front, 100% of your income went to paying taxes from January 1 until this date I'm about to tell you, that will tell you your true tax burden.
Ready?
If you paid everything to the government up front, Federal, State and Local, you would be working for them until:
June 3rd.
That's right. 154 days. 22 Weeks. 42% of the year, you are paying taxes.
How does that make you feel?
And look at it this way, if you are getting a big refund check back from Uncle Sam, that means you're sending him too much money. You're loaning it to him on an interest free loan.
Say you're getting a $1200 refund. If you adjusted your withholdings so you didn't get a refund (and didn't have to pay anything on April 15th) that would mean you could have an extra $50 each paycheck. What would you rather do? Get a "bonus" check that you will likely blow on something frivolous, or have an extra $50 a paycheck to pay the day to day expenses of life?
It's your money, it should be your choice.