Tough luck!

Monday, Feb 25 in Taxes | Comments (2)

Question: Cindy is getting $6,400 in tax refunds and has no money saved for her daughter for college. Should they put it toward college or paying off debt?

Dave Ramsey's advice: How will you pay for college? Where is she going to college? To make this work, she needs to go to an in-state school with in-state tuition. If she wants to go elsewhere, then TOUGH. You also need to stop getting that big a tax refund. That's more than $500 a month too much coming out of your check.

Hear the call!

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I just love it when people brag about receiving a huge tax refund, as if they should be proud they loaned the government $6,000 interest-free!
Good advice from Dave to get that W-4 updated and fast.

# Posted by Jason | 2/26/08 11:36 AM

GREAT ADVICE, Dave!! As soon as I starting paying off my debts, I realized I needed to change my tax forms immediately. Since I started working this job, I had gotten married and had 2 kids but never changed my tax info. My wife and I were struggling to make ends meet, but we got a HUGE refund every year on our taxes. How STUPID were we?? Changing this one thing really helped us jump start our Total Money Makeover.

# Posted by Dan | 4/10/08 10:38 AM

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