Warning! Refund Anticipation Loans

**i.m.cheap** · 01-23-2007, 12:59 PM

One of my DH's co-workers fell for one of these at H&R Block. DON'T DO IT! They offer to let you leave with a check today, subtracting your tax preparation fees and the LOAN fee from your refund. This is NOT a good idea! You will have the money in about 10-14 days anyway, if you e-file. Here is an interesting article: http://seattletimes.nwsource.com/htm...estment21.html

I find that our taxes are easy to prepare. I have always done our own. It might get more difficult if you have a small business, but it you take the standard deduction, it is so simple! We never had enough to itemize, even when we had mortgage interest to deduct, because the standard deduction was higher. Even doing the Child tax credit and Earned Income Credit is a piece of cake. If you earn less than $50,000 a year, there is usually free tax help available. I never could understand why I would want to pay H&R Block, or anybody else $120 for something I can do myself in an hour.

**FrugalMomof3** · 01-23-2007, 01:08 PM

We learned the hard way about this, we did the RAL last year and it cost us a$500 +. We didnt think too much about it because we got a substantial amount back but I agree DONT DO IT! E-filing with direct deposit get's your check/refund in the same time without costing anything.

The IRS allows you to file online for FREE!

**justpeachy92** · 01-23-2007, 01:08 PM

I so agree with you on this. The only year I paid someone to do our taxes was the first year my dh was self employed. My sister had hers done at H&R block and it cost her $190. We haven't gotten all of our w2s yet, but last year I snail mailed my return in and still had my refund in 2 weeks, and it only cost me postage.

**Darlene** · 01-23-2007, 01:26 PM

Thanks for the heads up.
"My guy" just did ours today, just need to sign & mail.
Hubby is "my guy".

**Dancing Lotus** · 01-23-2007, 02:08 PM

We had a small buiseness so we have to use an accountant and it cost us a bundle. THis is the last year we will have to use him and then we are going to do it ourselves. We are still waiting for dh's w2.

**autumnlynn** · 01-23-2007, 04:20 PM

I agree with you. I always do my own taxes.

**Emerald_Mommy** · 01-23-2007, 04:29 PM

We for last year & this year have had H&R Block do ours - my dad works for them during tax season and it's nice to have the peace of mind. Our taxes are pretty complicated because of Philip being a minister and such. We don't do the refund anticipation loans or whatever.

**geckoace** · 01-23-2007, 09:31 PM

i always do my own taxes, i use the online tax cut and efile for free. our situation is so simple there is no reason we need any help. regarding RALs and i refuse to pay some on interest on my OWN money, if im borrowing someone else's money thats bad enough, but my tax refund is already mine and if you efile and have it deposited it only takes a few days and its so convenient.

**dcompton** · 01-23-2007, 11:28 PM

Last year I had some self employment income for the first time, and it took trying three of the free online filing services before I got one to calculate it correctly -- I'd done a paper version first. So it was something of a hassle, but I'll go to that same site this year -- if I can remember what it was!

The only time I had a professional do my taxes was years ago when I had income one year from both US and Canada (I was a student there, and teaching as a graduate assistant). I wasn't about to tackle that one. Though I don't suppose I could have been hauled off to jail in BOTH countries if I had messed it up!

**rosebron** · 01-24-2007, 05:44 AM

I did most of mine twice then gave it to our accountant, who charged me substantially less. I now have a small business and for the past 7 years, I've been doing it myself using TurboTax, online and IRS telephone assistance.

**Telephus44** · 01-24-2007, 03:03 PM

I've been using Taxcut for years to do ours - I'd recommend either that or Turbotax. Sure it costs $20 or $25, but it is easy, leaves an electronic copy so I can go back and look at old returns, and it lets me play with different scenarios (should we itemize or take standard deduction? What happens if DH gets a raise? etc.)

I e-file if it comes with a free e-file (sometimes it does, sometimes it doesn't) and if not, I just print out the forms and mail them in. I always find it a rip-off that they'll charge me $15 to e-file when I can send it certified mail with return receipt for $6 or $7.

**littlemotherhaywood** · 01-24-2007, 07:36 PM

I've always done ours but I'm not so sure about this year with the move to a state with no state taxes from one with state taxes and all of our financial issues we had. If it's apparent where to put everything I'll do it, but I definitely don't want to mess it up. We've efiled for years and always gotten our returns rather quickly. I agree those loads are a rip-off.

**AprilP** · 01-25-2007, 04:48 PM

I've done my own taxes for years. I either use TurboTax Online or H&R Block Online. It's 9.95 to e-file and you don't have to purchase any software. They keep your returns in their system so you can go back and look/print them if you need them and you can download all the paperwork to a PDF file to keep on a disk/CD at home. I did refund anticipation loans for a few years a while back because I didn't have a bank account and I usually only filed because I needed money fast, like my car had broken down or whatever. Then I found out about a class action lawsuit against H&R Block, that they had been overcharging for the RA loans and all I had to do was put my name and address on a letter they sent me and I would get money back. I was skeptical, but did it anyway. Well January 3rd, I received a check for $103.00!