Tori Dunlap: 5 Tax‑Season Money Decisions That Quietly Set You Back — and What To Do Instead
Like many people, you don’t function perfectly under stress. And few times of the year are more stressful than tax season. Fretting over how much you’ll owe or how big your return should be — not to mention worrying whether you’ve reported everything correctly — can lead you to poor decision-making that will actually set you back financially.
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Believe it or not, even the experts understand this feeling. Tori Dunlap, founder of Her First $100K, says tax season can be overwhelming for her, too, which is why she focuses on simple, practical steps that make money decisions feel less stressful.
That’s why she made time to chat with MoneyLion about the five tax-season decisions that can quietly set you back — and which money moves to make instead.
1. Rooting for a Big Tax Refund
On the surface, a large tax refund seems tantalizing. After all, it can feel like “free money” from the government. Your friends and family certainly think so: They happily chatter about their big plans for their refund.
Dunlap wants you to rethink this concept of “free money.” In truth, a refund means you’ve actually overpaid throughout the year — and you’ve basically given the government an interest-free loan.
“If you're trying to get a tax refund, you're basically loaning the government money for nine months,” she said. “That money is coming back to you — it’s yours.”
To Dunlap, the smarter move is to adjust your withholding so you keep more of your money year-round. She does this herself.
“My goal every year is to avoid getting a tax refund, because it means I've used the system correctly,” she said.
2. Waiting Until the Last Minute
When a task stresses you out, it’s all too tempting to stick your head in the sand. But you can’t do that with your taxes. Point-blank, procrastinating on your taxes turns a task that isn’t fun but is still manageable into a full-on crisis. When you’re rushed and anxious, you’re more likely to make mistakes.
Dunlap reminds you that effective tax prep isn’t a wild sprint; it’s a year-round marathon that involves keeping your documents organized and tracking your finances every month. If you’ve got your system running smoothly in July, you won’t make sloppy, panicked choices in April.
“Tax season doesn't have to be as stressful as we're all making it,” she said. “Creating a tax plan starts every single month by making sure you have your documents and that you're tracking accordingly, so it's not this mad dash in the two weeks before tax season.”
Instead, she’d rather you be in a relaxed, celebratory mood during tax time, knowing you followed a plan instead of scrambling at the last minute. This year, she’s even partnered with QDOBA on its Tax Day Guac Relief promotion as a small, fun way to unwind once your tax prep is done. Free guac as a "taxes filed" reward seems reasonable to us.
3. Treating a Refund as “Free Money” and Spending It Impulsively
Another reason Dunlap questions the wisdom of getting a big refund is that recipients can inadvertently slip into a “suddenly rich” mentality that leads to overspending.
“Most Americans don't see that type of money as a lump sum very often, and that creates this temporary feeling of, ‘Oh my gosh, I’m so rich,’” she explains.
Instead, the smarter move is to direct that money toward your long-term goals. She stresses that a refund isn’t “magic money” or “Monopoly money” — it’s cash you already earned, and she wants you to have something to show for it. Dunlap says that building up your emergency fund should take priority — especially if you don’t already have one. Your next step should be paying off high-interest credit card debt.
Splurging may make you feel temporarily rich and fabulous. But putting your money to work for you will actually help you grow your wealth.
4. Going All-or-Nothing With Money
When you don’t have a balanced plan for your money, you’re vulnerable to swinging between extremes: On one end, you spend wildly and save nothing; on the other, you hoard every penny until you burn out. Tax season can magnify this all-or-nothing mindset, whether you’re tempted to blow a refund or freeze because you’re afraid of a tax bill.
“We either go all or nothing — spend a bunch of money on things we don’t really care about and regret not saving, or we save all of our money and don’t leave room for anything in the budget,” Dunlap said.
But she's clear that neither approach is sustainable.
“You need both. It’s a balance,” she said. “Save, pay off debt, think about future you — but also enjoy it, or one of those things is going to take over.”
5. Assuming Accountants Are Only for the Wealthy
If you’re torturing yourself every year trying to do your own taxes because you think professional preparers are only for wealthy people or successful business owners, Dunlap would like you to take yourself off the hook.
Everyday people just like you — and even experts like her, for that matter — turn to accountants for help.
“I am a financial expert, and I’ve never done my own taxes. And there’s a reason for that. If I can hand this off to somebody who knows how to do it, it saves me time,” she said. “If every single year you are stressed about getting it done, hire somebody who you know will do it correctly.”
The Bottom Line
Every money decision you make has an impact on your life and goals. And some decisions you make during tax season may quietly hold you back. But they don’t have to — not if you listen to Tori Dunlap, whose practical wisdom can help you achieve balance with your money and live your financial life according to your values.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal, or tax advice.
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