5 Reasons Receiving a Tax Refund Actually Stinks

March 11, 2014 — -- intro: I know, I know, you LOVE your tax refund. It's like finding a $20 bill in your heavy coat the first time you put it on for the winter. In fact, when The National Foundation for Credit Counseling conducted an informal poll, 56 percent of respondents said they "intentionally plan to always receive a refund each year."

It's the second year in a row that a majority of people have said this. "The findings suggest that receiving an income tax refund has become standard operating procedure for some people," said Gail Cunningham, spokesperson for the NFCC.

But it's not a good idea and the Foundation says you need to fall out of love with your refund—and fast. Why? Here are 5 reasons receiving a tax refund is not a good idea.

quicklist:title: Interest-free loantext: When you arrange it so you get a tax refund, what you are really doing is giving Uncle Sam an interest-free loan. C'mon? Do the Feds really deserve it?

quicklist:title: Temptation to charge ittext: While you're giving the government an interest-free loan, are you taking out pricy loans of your own to make up for it by charging things you need on a high-interest credit card?

quicklist:title:Loss of accesstext: When you receive a tax refund, that's money you DIDN'T have access to during the year, which might make a difference if you have a financial emergency or live paycheck to paycheck.

quicklist:title:Lower credit scoretext: If your finances are so tight that you sometimes pay late, you're hurting your all-important credit score. A lower credit score means higher interest charges on home, car and credit card loans.

quicklist:title: Splurge temptationtext: If you use your tax refund as a windfall for a wise investment, OK, but many people use the money to splurge on something they really don't need instead.

So this year, when you do your taxes, if you're due for a fat refund, don't celebrate, calibrate. In other words, adjust the withholdings on your W2 form so you won't receive a big refund next year. Here is an IRS calculator that can help you decide the number of withholdings, etc, you should take in order to break even and NOT break the bank.

This work is the opinion of the columnist and in no way reflects the opinion of ABC News.

Elisabeth Leamy is a 20-year consumer advocate for programs such as "Good Morning America" and "The Dr. Oz Show." She is the author of Save BIG and The Savvy Consumer. Elisabeth is also a professional speaker, delivering talks nationwide on saving money, media relations, and career success. Elisabeth receives her best story tips from readers, so please connect with her via Facebook, Twitter or her website, to share your ideas.