“This is a point that economists make every year at this time, but it is worth repeating,” says Dr. Walden, an economist with North Carolina Cooperative Extension. “That is, when you get a tax refund that means you have had too much money withheld from your paycheck for federal income taxes -- meaning that even though you get that money back the government has had use of that money for an entire year and -- this is the important part -- they don’t pay interest on using that money.

“Let’s say you get $1,000 back,” he says. “You’ve lost use of that 1,000 for the greater part of a year and you’ve not earned any interest on it.

“So what economists argue is that it is better to gauge your withholding to give you a zero refund and of course you can do that by trying to work with your employer in terms of adjusting the amount you have had withheld.

“Just remember if you get a refund, you’ve actually loaned the government money interest free.”