Have you filed your taxes? If you’re expecting a refund, consider a study from which says Mississippians do pretty well:
In its study, SmartAsset analyzed data from the IRS for all 50 states and the District of Columbia to determine where residents receive the highest average tax refund.
Mississippi ranks No. 6, averaging $2,953 per return.
Combine that with median home costs of $677 per month, Smart Asset’s analysis shows that Mississippians’ average return is worth 4.36 momths’ worth of housing costs, which is the most in its top 10 list.
Despite only having the sixth-largest average income tax refund, it could be argued Mississippi residents get the most from their refund in this top 10. According to Census Bureau data, the median home costs $677 per month, so the average tax refund of $2,953 is worth 4.36 months’ worth of housing costs. That’s the most in our top 10 states.
The top 10 (with average return) are:
- Texas ($3,133)
- Oklahoma ($3,088)
- Louisiana ($3,000)
- New York ($2,986)
- Connecticut ($2,958)
- Mississippi ($2,953)
- New Jersey (2,943)
- District of Columbia ($2,900)
- North Dakota ($2,896)
- Florida ($2,877)
But, should you really be getting a big refund, which admittedly, many people like and expect?
NO, says financial website Motley Fool. Their reasoning? The federal government is taking a bigger chunk out of your paycheck and essentially holding it hostage for a year. While the benefit to that is that it forces you to save, Motley Fool points out that when you do get that big check, you’re likely to spend it. On top of that, the government didn’t pay you interest for holding your money.
But still others say that it’s OK to get that big refund check. According to the balance, it’s not that devastating. Boiling it down, it depends on what you do with that money. If you use it to pay off debt and put a little in savings that’s good. And what if you end up having to owe the IRS some money? Well, it’s all up to you.