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In this video, the speaker discusses the implications of receiving a large tax refund each year when filing tax returns. While a big refund may seem positive, it indicates that too much tax was withheld from wages throughout the year, resulting in a return of your own money. The speaker suggests that instead of relying on significant refunds, individuals should consider adjusting their federal withholding with their employer. This adjustment can help prevent overpayment and allow for better cash flow throughout the year, emphasizing the importance of understanding the reasons behind receiving a tax refund.
