I'm getting my smallest tax refund ever this year and I couldn't be happier - Business Insider

, it's typical for me to receive well over $1,000 back from the government. For most people that feels like an extra pay day.in 2018 to adjust their withholdings after the new law took effect were having less tax withheld, which resulted in more money in their pockets — and a smaller windfall during tax time.

"Many filers received a boost in their paychecks throughout 2018; that's where the remaining amount of their refund went," Mark Jaeger, the director of tax development at , told me last year. "Instead of waiting to receive their money as a tax refund, they received it all year long."— you had too much income tax taken out of each paycheck, and now the IRS is returning what is rightfully yours. Instead of keeping your money in a savings or investment account where it could earn interest all year, you essentially gave an interest-free loan to the government.

Personally, I'd like to optimize every dollar I earn, so in 2019, I tried to get as close as possible to breaking even on my taxes. In other words, I set outI'm happy to report that it worked — I'm getting my smallest federal refund ever at about $200. That's nearly $780 less than I got back last year.

Personal preferences aside, I understand why people would want a big refund. It can double as an instant savings account or help you pay down debt quickly. "For some, that's a perfectly fine strategy, as long as you can cover all of your other expenses throughout the year," Jaeger said., try adjusting your withholdings this year to match your tax liability.

Anyone who gets an IRS refund is completely void of financial sense. During that entire year your refund is being used by the federal government without interest because you gave it to them for free...

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