Why it’s good to owe the government some money on your income taxes

It’s tax time. It’s the time of year when people brag about the amount of money they’re getting from the government… It’s as if they won the lottery! “I’m getting back $XXXX.XX” or “my income tax check just arrived in the mail and I’m going to spend it on [something nice]!!!”

This drives me crazy.

It’s not a windfall, people! It’s not the lottery. It’s not new money.

It’s YOUR money and you’re just getting it BACK from the government. You’re getting it back because you over-paid your taxes earlier in the year and basically gave the government a long-term, interest-free loan.

So that big check you’re getting could have been spent elsewhere, earlier; or it could have been invested to earn even more money.

The perfect income tax return is one in which you owe/receive absolutely nothing. The second-best income tax return is one in which you owe money. The worst kind of tax return (and, ironically, the most favored) is the one where you get money back.

Aaron Hoos

Aaron Hoos is a writer, strategist, and investor who builds and optimizes profitable sales funnels. He is the author of The Sales Funnel Bible and he's a real estate investor and a copywriter for real estate investors.

7 thoughts on “Why it’s good to owe the government some money on your income taxes

  1. I always think of it as money gone once it hits the Governments pockets.
    I know one area I could greatly improve my finances would be to learn how better to use my business to the best advantage.

    1. Thanks for the comment, Warren! As my business grows, so does my focus on legal tax reduction strategies. I’ve found that it’s definitely worth investing the time to learn about those strategies (but I still have a long way to go!)

      1. That is one of the things I love (and hate) most about running a business. The sheer volume of cool (and often not so cool) stuff you get to learn and apply. When things work well you get to see the growth take place right before your eyes and feel like you’re making real progress! :)

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