Why do my friends get a huge refund at the end of the year when I don’t? What am I doing wrong?

Just because your friends or family are getting larger refunds then you, this does not mean you are doing something wrong. In fact, it probably means you are doing something right. Assuming you are taking full advantage of all the deductions and credits available to you, getting a smaller refund at the end of the year means you have not overpaid your tax burden during the year. In a sense, your friends and family who are getting large refunds are loaning money to the IRS interest free!

Wouldn’t it be better to have that money during the year working for you, rather then working for someone else?