- This topic has 7 replies, 1 voice, and was last updated March 9, 2007 at 4:01 pm by .
- March 9, 2007 at 4:01 pm #238465
Re: Budget101.com : Tax Refunds: You Don’t Have To Pay To Borrow Your Own…
I have never hired an accountant. I use Turbo Tax or Tax Cut software and I have not had any problems. Just gather all of your paperwork, ssns (important not to mess them up!!!!!), phone numbers, bank routing numbers, etc. before you start and send the kids off to play elsewhere.
you need to concentrate.
then, read carefully and input everything. do not send until you are sure of what you have input. otherwise, you will have to make corrections.
when you file your taxes, you have the option of having your tax refund sent directly to your bank account via direct deposit (free).
it will go to your checking or your savings account.
this year, you have the option of spliting it up into three different accounts (say, a checking account, a savings account and a money market account or a checking account and two different savings accounts, for example).
the second option is waiting for the irs to mail you an old-fashioned paper check in the mail.
the paying part comes when people go to h&r block or jackson hewitt or some other tax preparer and get a “rapid refund” type thing done.
what is actually taking place is that you are due to get a refund, say $1,000. Instead of waiting for the refund to come in the mail, you say “I want it now!”, so they give you what is essentially a payday loan of your own refund, and give you say, $750, keeping the rest for the fees of you not waiting. That is why I say, you don’t need to pay to get your own money.
The refund is yours. It is all yours, unless you take the payday loan/rapid refund option and then, you pay a large chunk of money to them for processing the loan and cutting you a check, albeit smaller, to give you a portion of your money immediately. if you would just wait for the direct deposit, you get the full $1000 in about 10-14 days via direct deposit, a little longer in the form of a paper check.
Otherwise, you pay what is about 150% interest on your own tax refund.
You can find out more details by googling “rapid refund” or “speedy tax refund” or something similar.
Hope this helps.
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