Better question: WHY ARE YOU GIVING THE GOVERNMENT (who hates you and wished you patriots didnt exist) AN INTEREST FREE LOAN?!?!?!
If you dont owe the gubment a couple hundred bucks at the end of the year, you are doing it wrong.
If you are getting thousands back on your taxes, you are a fool. Run this calculator. It will tell you how to claim the amount of deductions you are entitled to instead of what you THINK you should claim. (I was floored when I ran my calculation... so was my HR dept)
IRS Withholding Calculator
Me? I owe a whopping $105 to the feds this year. It feels great to actually spend the other ~$1895 throughout the year instead of begging uncle Sam to give it back a year later. WITHOUT INTEREST.
Oh, and dont forget, There have been several states that have issued IOUs in the past several years because they have lacked the funds to refund money that is rightfully due to their residents. "Yeah, you overpaid your taxes, but we cant afford to give you back your $$$. Here's an IOU. We're cool, right? Can you imagine going into a walmart and returning an item, only to be given an IOU instead of your cash?
I'm with Cameramonkey on most of his ideas.
I'll square up with the IRS by the due date.
It's not about the small amount of interest,
nor the IOU'S that some States issue.
I'm old fashioned..........
I don't agree with how the Government takes large amounts of my hard earned money
with threats of jail time or worse for non compliance,
and doals it out in any fashion they see fit.
Who said anything about banking the extra money? It's about having all of your money now to spend instead of getting it back in a big chunk later.
What if your boss said " I'm going to hold back $20 per week from your paycheck. I'll give the money to you at the end of the year."? You'd be livid and want what is yours and on time.
If you want to get a bunch of cash back it's your prerogative. Personally if I'm not going to be compensated for the use of my money, I want it now.
I think the OP's question was what are you goung to buy with your tax return. If nothing, then move along. Start a debate about about whether or not you should give an interest free load to the government in another forum.