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In a recent Instagram post<\/a>, money expert Vivian Tu recently spoke to her audience about a topic currently on so many minds: tax refunds.<\/p>\n Read Next: Here\u2019s the Minimum Income You Need To File Taxes in 2026 \u2014 by Age<\/a>\u00a0<\/strong><\/p>\n Check Out: 9\u00a0Low-Effort Ways To Make Passive Income (You Can Start This Week)<\/a>\u00a0<\/strong><\/p>\n While it may seem like common sense that one would be overjoyed to be receiving a hefty sum in the form of a tax refund<\/a>, Tu made it clear that it\u2019s actually better to receive a smaller refund (or none at all).<\/p>\n Also see three tax questions that sound small but change your refund big-time<\/a>.<\/p>\n Setting up a one-woman skit in which Tu played both roles, an overjoyed person talking to their friend about their $1,500 tax refund<\/a> this year, the finance influencer outlined a compare-and-contrast situation.<\/p>\n Upon hearing that her friend was actually happy to be getting nothing back in taxes, the refund earner asked exactly why that might be. Tu\u2019s tax-savvy character said, \u201c[Your refund\u2019s] not free money; it\u2019s your money that you\u2019re getting back late.\u201d<\/p>\n Noting that this is similar to loaning the federal government your money interest-free, the smarter tax preparer continued to say, \u201cI got to keep my money in my pocket \u2014 and in fact, I invested it,\u201d adding that over the past year, her $1,500 delivered a 16% return on investment<\/a>, ending up with almost $1,750.<\/p>\n Explore More: Maximize Your Tax Refund by Avoiding This Common Mistake<\/a>\u00a0<\/strong><\/p>\n Tu then pivoted to offer up some practical advice to viewers as to how to keep more money away from the taxman, skipping a later return in favor of free cash flow that can be wisely invested.<\/p>\n In this case, that solution came in the form of IRS Form W-4, formally known as the Employee\u2019s Withholding Certificate. By using this form, you can dial in the precise amount that should be taken out of your check.<\/p>\n There\u2019s one caveat, though, as the money personality pointed out: Be sure not to lower your withholding amount too drastically. Nobody wants to be staring down the worst-case scenario of an immense tax bill<\/a> next year.<\/p>\n For self-employed individuals or those with a more complex tax situation (or for W-4 filers who would like expert guidance to avoid costly mistakes), it\u2019s best to speak to a tax professional before adjusting your regular payment schedule and amounts.<\/p>\n More From GOBankingRates<\/span><\/strong><\/p>\n This article originally appeared on GOBankingRates.com<\/a>: Vivian Tu: Why a Smaller Tax Refund Means You\u2019re Doing Your Taxes Right<\/a><\/p>\n<\/p><\/div>\n