Let’s say your employer offered to pay you 7 days early, every pay period for only a small fee of $30. Quickly running the numbers for a weekly paycheck of $800, this equates to an annual percentage rate of 195%, yes I did not misplace a decimal, 195%! Under normal circumstances, no one would ever accept this deal from their employer to have their money only 7 days early. Unfortunately every year around tax season millions of taxpayers do just that!
These “tax refund loans”, also know as “instant refund loans” or “refund anticipation loans”, have been promoted by H&R Block (HRB) and Jackson Hewitt (JTX) and other tax preparation services in recent years. Impatient taxpayers accepting tax refund loans pay anywhere from $30 to $90, not including the regular cost of tax preparing and filing. According to the Consumer Federation of America these loans cost (continue reading…)
With tax season just around the corner, now is the time to begin gathering your tax information. Whether you prepare your own taxes by hand or use computer programs, utilizing these commonly missed deductions and credits will help you get a bigger tax refund this year.