For some people their favorite time of the year is tax season. You know the people that are fortunate enough to get a refund during the mostly dreaded tax time. Then again those who are not getting refunds were fortunate enough to pay taxes and enjoy a big stream of revenue. Both parties are fortunate to have the minimum income to even deal with the IRS meaning a paycheck of some kind was involved putting food on the table. With each tax season comes out scams, rebates, and loans from payday sources to car manufacturers.
You will be seeing on TV and hearing on the radio advertisements about how your car salesman can get you a down payment from your tax refund but let’s look at the other options. When you prepare your taxes at H&R Block or Jackson-Hewitt you normally come across an advance called a Refund Anticipation Loan. A Refund Anticipation Loan is a storefront loan that is similar to a payday loan where they write you a check fronting you the money before you get your check from the IRS.
Make sure you read the fine print when it comes to Refund Anticipation Loans since they can be in some cases 100% A.P.R. Jackson-Hewitt was using a bank in Santa Barbara that was charging 113% A.P.R. Ask your tax preparer how much the loan rate will be because in some cases the fine print is not listed.
Some money experts warn that you should not get refunds in the first place. Better planning of your yearly income makes it where you do not overpay your hard earned income. Make sure that next year you plan out your income and pay in less to the government until the money is actually due.
Look out for the retailers that will all be sharking their way into your pocketbook when it comes to your tax rebate. Every business in America will be trying to corner you for your rebate money including your jeweler, car dealership, and furniture store. It may be the salesmen’s only chance to cash in on some money coming in before the consumer decides to put it in savings where it belongs.
IRS Refund Help