- March 9, 2007 at 4:01 pm #238468
Tex Refunds, etc.
It doesn’t cost half your refund, unles you are only getting about
$300 back, and then, really, what’s the point in getting a ral?
the ral’s will cost you about $100-150 extra to get, because the
theory behind them is that the company who gives it to you (usually
H&R Block), is lending you thier money, and you are signing over
your refund to them. it’s the same as getting a short term pay day
loan. you pay high fees to get the money immediatly.
the reason they charge so much is because there are people who have
debts with the us, or loan companies, and who have thier refund
garnished by the government in order to pay the debt. because this
isn’t common knowledge when the taxes are processed byt he
accountant, they are making themselves (and you) liable for the
money given immediatly.
the debt to the accountant will be treated the same as any debt, but
people who might be desperate for the money, and think or know the
money will be garnished, might do this to get the money anyway.
it doesn’t always work that way, and you still have to have decent
credit to qualify for the ral, but it does happen.
the ral is different from asking your money to be direct deposited
into your banking account, which is free of charge to do. that
ensures that your money arrives faster because you do not have to
wait until a check is cut, then mailed, before you get the money.
it costs nothing extra to get it direct deposited. additionally,
over the past few years, the government has significantly upped the
amount of people who process online returns, and significantly
downed the amount of people who process mail in returns.
because of this, an online return sent in on feb 1st, and a mail in
return recieved on Feb 1st will not be processed in the same amount
The mail in will take 4-6 weeks to even be looked at, though the
earlier it is mailed in, the better your chances of beating the rush
are. So, 4-6 weeks later, someone processes the return. Within 2
weeks, your check is cut, and either mailed or deposited.
mailed, figure another week of time to get it into your hands. So,
by mailing it in, it can take up to 9 weeks to get back into your
For people who mail their taxes in on April 15th, it can take up to
12 weeks to be processed now.
Now, the person who efiled on Feb 1st will have thier return
processed within 1-2 weeks. Thier return will be deposited within 1-
2 week, or sent out. Add another week for mail time, and the person
who did efile has a check in hand no later than the end of February,
or the begining of March.
The longer you wait to efile, the longer
it takes to return, but because there are literally 3 times as many
people processing online returns as mail in returns, it will still
not take nearly as long to process.
What does all this mean? If you want your refund fast, and to get as
much out of it as you can, file it immediatly by efile, and direct
deposit the money.
One year, we got our taxes filed the 1st of February, and we got
them back in our bank just before Valentine’s Day.
— In Budget101_@yahoogroups.com, “The Osenbaugh’s”
taxes and he has it deposited to my checking or saving account it
cost me money and how much. If he has it snail mailed to me there is
no cost. If this is not correct please let me know.
> No the group is talking about using Refund Anticipation loans.
The accountant will charge you for preparing your taxes no matter
what, but if you have the refund direct deposited or issued in a
check form, it will not cost you anything additional. A refund
anticipation loan WILL cost you….about 1/2 of your refund.