ONALASKA, Wis. (WEAU) -- Financial adviser Mark Bertrang with Bertrang Financial Corporation said one of the biggest problems with a tax refund is actually getting one.
“People should not be getting a tax refund. It means that they actually overpaid during the course of the year,” said Bertrang.
Bertrang said the best step taxpayers can take to avoid getting a refund is to consider redoing their W-4 form.
He said many people see tax refunds as a way to splurge rather than putting it towards something they need.
“All of a sudden a $1,000 tax refund could become a $3,000 trip that they couldn’t afford in the first place,” said Bertrang.
Bertrang said some things you should consider using a tax refund on are an emergency fund, paying off debt or a retirement fund.
“They may find it difficult to put money away in an ongoing basis through the year, but here’s an opportunity where you can make that one deposit, that one investment for the very first time, and to plan ahead for the future,” said Bertrang.
The deadline to file your taxes is Tuesday April 15.
Bertrang said it’s ok to spend a small amount of your tax refund on something out of the ordinary as long as it isn’t too expensive.