What is a disadvantage of overpaying your taxes during the year?

1 answer:

5 0

The disadvantage of overpaying your taxes during the year is that you cannot use the money or draw interest on it until after you get your tax refund.

If you are overpaying your taxes, the government is holding that extra money for you. At the end of the tax year when you file your taxes, they will give you the extra money back that you overpaid.

However, you don't receive any interest on the extra money that was held.

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