"Instant Refunds" - Avoid Them!

So called "instant refunds" cost you a LOT of money, taken out of your refund before you get it.  You can get the WHOLE refund from the IRS in 1 to 2 weeks by electronic deposit?  Learn more with this information.

Don't Get Ripped Off With An "Instant" Refund!

You have a choice. Wait two weeks for a FULL refund, or take an "instant" refund for a lot less money.

Ask the person who's submitting your taxes:  how much is my regular full refund, and how much is my "instant" refund?  Then make your choice.

Choice 1:  Wait About Two Weeks to get your Regular Refund:

The IRS lets you file electronically for free and have your refund deposited directly in your checking or savings accounts in about 10 business days.  That's about two weeks.

And there are plenty of free tax assistance services that will help you do this at no cost to you.  (Click Here! to find free tax help in WV.)

Choice 2:  The "Instant Refund" Process - No Waiting, Big Charges:

But when you take a so-called "instant" refund through a paid tax preparer, you are paying through the nose for the privilege. 

Why?  Because that so-called "instant" refund is actually a LOAN to you with gigantic annual interest rate charges subtracted up front.  You are not getting your whole refund.  You're only getting the part that's left after they take out their whopping interest rate charges.

Here's what happens.  Technically, the tax preparer arranges a "loan" to you of the money you're calling your "instant refund."  You "pay back" the "loan" by having the IRS send your refund to the "lender" a couple of weeks later.  And for this little two week loan, you get socked with a breath-taking annual interest rate charge subtracted from the money you would get. 

How much are you paying?  Some places charge as much as 350 PER CENT or even 500 PER CENT annual interest rate! Yikes!  You could get a better loan from the local corner loan shark leg breaker!

So Here Are Your Choices:

• Smart Choice:  Take the regular electronic refund.  Wait two weeks.  Get ALL your money.  Tell your friends how smart you are.
• Dumb Choice:  Take the smaller "Instant Refund."  Pay ridiculous interest charges on the loan, and have less for yourself.  Tell your friends how dumb you are. 

Want More Information?

• Click Here! for an article from the Atlanta Journal Constitution newspaper.
• Click Here! for information from the Center for Responsible Lending.
• Click Here! for an article from Consumer Reports magazine.
• Click Here! for an article titled "Refund Anticipation Loans Suck."

It's your choice.  Which one are you going to make?

Keywords: EITC Earned Income Tax Credit tax credit taxes RAL refund anticipation loan