The Truth About Your Tax Refund

Your tax refund is NOT found money! It is NOT a gift from the government.

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Well, it’s tax-filing season and many of you will get a refund. It’s so important you have the proper mindset around that money. So important you remind yourself what that refund is. And what it isn’t. It’s NOT found money. It’s NOT the government’s money. It’s NOT some sort of magical arrival from a mysterious land.

It’s your money. It’s pre-paid taxes that ended up being more than you owed. It’s an asset that you need to put to work in a productive way. Into your FHSA, if you’re eligible. Your TFSA. Your RRSP. Your RESP. Down on your mortgage. Certainly down on your credit-card balance if you have one. Your tax refund is not a gift.

You should know the government better than that. “Can’t we do something fun with it, Dave? Or at least a portion of it?” No. No fun ever. Ever. No, seriously. If you accidentally wrote a check for $50,000 for a car that only costs $47,000, and the next day the dealership said, “Hey, you overpaid us by $3,000,

here’s your money back,” would you respond, “Oh my gosh, I just got $3,000 free dollars. How lucky am I? It’s like finding it on the street. I’m going to Cancun.” Of course not. Well, please tell me you wouldn’t.