A big tax refund? Don't celebrate

If you are owed a refund on your federal tax return, you may have cash to take a vacation, pay down debt, or save it for a rainy day. But the refund really means you've made an interest-free loan to the government. You could have had the use of your money throughout the year if you didn't overpay your withholding and/or estimated taxes. Best strategy: Review your current tax payments so they nearly approximate your tax for the year, giving you more money now instead of waiting for a refund when you file your return.