Anyway, I went to jachewi on the 1/19/10 to file taxes. I just do the assisted refund where they take the preparer fees, and the bank fees so I can have it deposited in my account. I did the RAL one year in 2006 and it was the worst thing I did for me and my family. We did qualify for $1300 on the first day, but we had to wait for the rest. Man we had to pay sooo much money to cash the check. I promised my family I will do better by them after that. We looked at the return, and the fees, and I said that was too much money. We get EIC and everything else because I am in college, married with 4 children. I used to do my own taxes when I was single, but one mistake almost cost me a few thousand years ago.

Eventhough I have debts, I never make promises to pay unitl I have the money. Paychecks are one thing because the have to pay you, but your dealing with human error, and of course the IRS. In ‘09 my refund was pushed back a week and cost me my rent, ISF’s, and utilities. Granted the IRS actually found I was owed another $300, which was a shock. Still banking on the date before the change prompted me to be more cautious this year. I always cross check with the bank my tax preparer uses, and the irs’s website using the “where’s my refund” tab. They usually update inofrmation on Monday night/Tuesday morning. If the date you are to recieve your refund on the irs’s website doesn’t change by Wednesday, then it will be recieved on a Friday if you did an e-file. usually this Friday date, corresponds really to a date of the following Tuesday.

Personally, the only time I even choose to use a tax prep place is if I really need the money soon and there are a lot of other people in the same boat. I took out a RAL this year for 7002.00 and am waiting to see if it goes through (should know tomorrow) because of a serious financial problem that popped up. Normally, I try not to spend money that I don’t have to, but this year that extra few days will make a real difference to me if it goes through. I filed through Jackson Hewitt and the fee was just 58.00 for the RAL this year + a filing fee of 20.00 or so. Now, I don’t get earned income credit or most of the other tax credits because I make too much money, so mine is just a return of well less than half of what I paid in, but I don’t think that made any difference in the fees — although I could be wrong. My entire fee, after using a 20.00 off printed out internet coupon, including filing the 1040, Schedule C, 3 state income tax returns and some pretty complex depreciation that took the lady 5 hours to fill out was 369.00. I consider that pretty decent. 3 years ago, I used H&R block on a much simpler return with a 2900 refund and they charged me 915.00, which was insane. In fact, I would have backed out if they hadn’t already pushed the button and submitted the return. I definitely won’t consider using them again.

Like any place, though, you need to make sure you get a decently knowledgable person to file your taxes. I always call ahead and make an appointment with someone that has experience; believe me that helps.

Anyway, my point here is that some places are better than others. Personally, I don’t think the government should have the power to stop the practice of OFFERING the loans, although I think that deceptive offerings and forced ins should have stiff penalties. Most tax companies won’t push them on you, but a few will.

And, some companies make a profit off of offering RALS and some don’t. Republic is offering lower rates this year through Jackson Hewitt at least because Jackson Hewitt isn’t taking a cut (although they MAY be getting part of the fee, but not the interest).

Also (Finally): Tax preparation companies won’t have near the business at all if RALS cease to exist, because a large percentage of the filers are there to get those refunds faster. Supply and Demand. A good friend of mine runs a small individual tax service in a small town in Oklahoma and he decided to quit offering RALS last year because he felt that people were losing money on them (and it actually cost him a 3.00 filing fee that he didn’t pass on when someone chose to apply for one) and his business dropped by over half. People will walk in and go through the whole process and then, when he tells them that he doesn’t do RALS, they get up and leave without signing the paperwork. The loans are there because people want them.