Posted in Taxes, You and Your Money

Do You Have a Government Savings Account?

Well, here we are again.  It is January, a new year, and tax time.  Do you dread this time of year because you end up owing every year, or is this the best time of year for you because you are anticipating a big check from the government?  I think that many people miss the goal of the tax system.  I have many clients come in who can’t make their monthly bills, but receive $1000’s back every year on their tax return.  When you receive a refund check from the IRS, you are actually receiving your own money back.  A refund check is not the government sending you free money.  When you receive a refund, it means that you paid too much in in taxes over the year and the government held your money for you at 0% interest.  Your goal should be to be as close to $0 as you can at the end of your tax return.  That way, you give the government what you owe them and you get to keep the rest for yourself.

If you are owing money every year or are receiving a big refund every year, you need to change your W-4 with your employer to the correct number of exemptions to get you to $0.  On the IRS website,, they have a withholding calculator tool that will help you determine what your W-4 should be.  Make sure you enter everything accurately and if you do, you should be within about $25 on either side.  Your money is your biggest wealth building tool and you want to make sure you keep as much of it as you can.  If you have been getting a refund, take the extra money you will be getting in every paycheck and get out of debt or if you are out of debt, invest it and let it grow for you.

If you need any help determining what your W-4 should be, please contact me at and I will be happy to walk through it with you.


Debbi is a personal finance expert, motivational speaker, and author of the award winning "The ABC's of Personal Finance", "26 Weeks to Wealth and Financial Freedom" and “50 Shades of Money”. In addition she hosts a worldwide weekly radio show and her advice has been seen in multiple media outlets including NBC News, Forbes, Money, US News, Experian just to name a few. Debbi has also been the President of Lovell Ministries since 2012.

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