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Stop Celebrating Tax Refunds: Why It's Not a Win for Canadians

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Were you one of the millions of Canadians that received a tax refund this year? Despite how it may feel, do you realize this isn’t a bonus payday? Receiving a refund just means you’ve overpaid your taxes throughout the year and that shouldn’t be cause for celebration.

Here’s the scoop: Getting a tax refund essentially means you gave the government an interest-free loan!

Think of what you could have done with that money throughout the year – you could have used it to pay down debts, you could have invested it for your future, or you could have simply spent it on something for yourself. Instead, it was sitting in the government’s coffers, doing nothing for you.

Fear not… there’s a simple solution to this. You can reduce the amount of tax withheld from your paycheque and ensure that you’re not overpaying throughout the year.

So the next time you’re tempted to celebrate that tax refund remember that it’s not a windfall – it’s a sign that you’ve been letting the government play with your money for far too long. Take control, make the appropriate adjustments, and keep more of your hard-earned cash where it belongs – in your pocket.

This information has been prepared by Ryan Secord who is a Senior Investment Advisor for iA Private Wealth Inc. Opinions expressed in this article are those of the Investment Advisor only and do not necessarily reflect those of iA Private Wealth Inc. iA Private Wealth Inc. is a member of the Canadian Investor Protection Fund and the Canadian Investment Regulatory Organization.

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