If you overpaid taxes last year, you have the option of applying the excess amount to this year’s taxes, or have it refunded to you. In deciding which option would be more beneficial to you, consider your current financial situation. Do you plan to make a large purchase sometime soon? Have you been spending more lately than saving? Do you have necessary payments to make? Are you comfortable with the amount of easily accessible and disposable money you have?
Answering these questions can help you determine what you want to do with your overpaid taxes. Having the money refunded to you will certainly help alleviate some of your financial stress, including the burden of having to make payments for a car, a concert ticket, or even a bail bond.
