eli5: can someone explain tax returns?

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i always see so many people talk about tax returns or tax season around this time and its so confusing. to me it seems like free money

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Anonymous 0 Comments

Tax returns are not good, when u receive a tax return from the gov it mean u essentially gave the gov a interest free loan with your money. It is money that you should have had in your account the entire time but the government kept it till year end bc you were paying to much money. You can adjust it by the amount of exemption you claim when you file your w-4. Basically you want as close to zero return/owed to the government each year so you can make the most of your money.

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