It may seem nice to get a check from the government every year, but a Kansas State University financial management expert says that a person’s tax liability should be as close to zero as possible.

“This means that when you file your tax return that you do not owe any taxes and you do not get a refund — remember that the IRS is not a savings account,” said Kristy Archuleta, co-director of the Financial Planning Clinic, a part of the School of Family Studies and Human Services in the College of Human Ecology.

“If you receive a large tax refund, you’ve loaned the government the use of your money throughout the year interest free,” she said as a reminder for America Saves Week this week.

Archuleta said receiving a major tax refund means an individual needs to adjust his or her W-4, a form that tells an employer how much to deduct from each paycheck. The deducted amount is called the withholding, and by minimizing this amount, a person can increase his or her cash flow.

A W-4 form is typically one of the first documents an employee fills out in a new job. If a person’s financial situation changes, the form can be updated by contacting the human resources department at his or her place of employment.

If a tax refund is received, the money can be used to achieve several different financial goals. However, whatever the money is used for, Archuleta advises people to be deliberate in their financial decision-making.

While a tax refund may seem like a free gift or a windfall, it´s not. That refund is just your own hard-earned money that Uncle Sam has used interest-free for a year. Before you go on a spending spree, think about ways you can use your tax refund to improve your family financial situation.

“Don’t blow a tax refund on unnecessary items,” Archuleta said. “Use it to build an emergency fund or pay down debt, especially high-interest debt. It can also be used for savings by contributing to a long-term investment tool, such as a Roth IRA for retirement or a 529 plan for a child’s education fund. The money can even be saved for a large ticket item you are planning to purchase.”

Saving is a choice – and an essential foundation for financial security. More information on saving and other money management skills is available at the K-State Research and Extension website www.kansassaves.org.

Linda K. Beech is Ellis County Extension Agent for Family and Consumer Sciences.