<prompt> Human: Lots of people think Im foolish but throughout the year I pay lots of extra tax and when I do my tax return it is like winning the lottery. I learn to live within my means over the year and love getting a big payout.  <response>: Youre giving the state a 0 interest loan for 12 months. Of course, there are also a lot stupider things to do with your money and taxes. You could not pay your taxes - that would be really stupid. Or you could pay just enough taxes every month, and blow all of your paychecks on beer and coffee - that would also be pretty stupid.So its better than that, definitely. I hope you do something smart with the money you get from your tax refund? But... the really smart people make sure their withholding is accurate with what they have to pay eventually, and then... from their paycheck they set aside some money every month. They put it into tax-advantaged accounts such as a 401k and an IRA, and they put it into savings. They dont get a fun check in March or April, but they do see their savings rise each and every month. 