Big tax refund checks from the IRS are a BAD thing and could mean you are making a huge mistake on payments

WHILE getting a big tax refund seems like a good thing when you get it, it actually means you have paid the IRS more than you actually owed.

The money you get back in your tax refunds is money that should have never left your wallet, but there is a way to fix this.

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Even if you do get this money returned, it’s money you could have used on other things at the time you gave it to the IRS instead.

Whether it’s surprise expenses like an accident or buying something to treat yourself, it’s better to keep your money accessible for when you need it.

Thankfully, you can control exactly how much you give to the IRS.

In order to stop overpaying the IRS, you can simply adjust the amount your employer withholds from your paychecks.

Those who are self-employed can just lower the estimated taxes they pay.

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The IRS has a tax withholding estimator tool that can help you figure out how much money to withhold in taxes.

It’s important to not pay less than you owe the IRS, as this can result in hefty fines.

However, if you’re expecting thousands back in tax returns, you have been paying too much in taxes.

Meanwhile, money might still be available for Americans who were entitled to stimulus checks in 2021, but did not receive the correct amount.

Anyone who believes they are owed more than they received will be able to claim the Recovery Rebate Credit when filing their 2021 tax returns.

The third federal stimulus check, which the government began paying out in March of last year, was issued mainly based on 2019 and 2020 tax returns.

This post first appeared on thesun.co.uk