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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Not paying off your credit card, or having enough cash to cover an emergency car repair, are problems but those are the problems, not the fact of getting a refund.

Getting a refund or not doesn't really affect anyone's financial situation so it's hard to see how it's the "stupidest thing to do financially".
[/quote]

+1.  I can think of an untold number of more stupid things to do.  Penny wise pound foolish armchair investors aplenty

Besides, if its true that the refund is valuable for a liquidity crunch then the inverse is true as well: if you end up owing money, and you spent all your cash you would end up paying penalties, fees, wages garnered, etc.

[/quote]

No, the inverse is not true. Simply owing money doesn't mean paying penalties, fees, or having wages garnished.

Much better to owe the government $250 in April than to get a $2,500 refund. Especially if you have CC debt, which someone foolish enough to try to get a windfall from Uncle Sam likely does.[/quote]

You missed the point. I wasnt saying that owing money means you pay fees. My point was that if one argues that not getting a refund is a good thing so that you have money to pay for an unexpected expense, it implies that you wouldn't otherwise have had that money (otherwise whats the value of the liquidity?). If things are truly that tight for someone, then the inverse would be true - if you didnt get a refund so that you could cover some unexpected expense then you wont have money to cover the tax bill that comes.... and then you would be paying fees and fines. Put differently, whether you mismanage your finances by loading up your CC or by failing to pay your taxes, either way you are in trouble.

Moreover, why do you assume that you would only owe $250 but somehow get $2,500 in refunds? Why would the risk of underpaying be low but your risk of overwitholding is so high? What if it were the inverse - you get a $250 refund vs owing $2,500? A more reasonable argument would be to consider them equal in likelihood and in dollar amount.[/quote]

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