It’s almost tax season again and there will be commercials, mailings, phone calls and signs directing you to your nearest paid tax preparer for a quick tax refund.
RALs (or refund anticipation loans) can boast triple digit interest rates when you consider the fees associated with getting the loan on a short term basis.
A RAL is simply a loan (even car dealerships offer them in the form of a down payment) in the amount of your income tax refund less the additional fees added for the convenience of getting your refund a few days earlier than regular filing. The loan is repaid when your actual income tax refund is received.
Now who wants to pay additional fees on their money to receive it a few days sooner and you’ve waited all year anyway?
There are several nonprofit organizations in our service area who offer free tax preparation by trained staff. They can e-file your return and have it direct deposited in your bank account within 5-14 business days.
If you are interested in taking advantage of the free income tax preparation in your area please stay tuned to the HFHMGC newsletter because as soon as the free income tax preparation site information is available we plan to share it with you!