Answer :

Final answer:

Receiving a tax refund can lead to overpaying the government, providing an interest-free loan, and missing out on using the extra money throughout the year.


Explanation:

A downside of receiving a tax refund is that it signifies that you have overpaid the government throughout the year, resulting in less money in your pocket on a regular basis due to higher withholding from your paycheck.

Additionally, receiving a tax refund means you have provided the government with an interest-free loan since they hold onto your money until the refund is issued, rather than you having access to it when you earn it.

Another disadvantage of getting a tax refund is that you could have used that extra money throughout the year to invest, save, or pay off debts rather than waiting for a lump sum refund.


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