March 14, 2005 — Elizabeth Robinson of Newport, Tenn., a 40-year-old solitary mom with one grown daughter as well as 2 in the home, worked as a housekeeper year that is last. Her taxes last month, she used a nationally known commercial tax preparer and qualified for the Earned Income Tax Credit available to families with incomes under about $35,000 when she filed.
Up against an unusually high bill that is electric of than $80, Robinson plumped for a refund expectation loan, or RAL, that offers an income tax reimbursement in a few days and it is guaranteed according to a taxpayer’s anticipated reimbursement, like the EITC, which decreases the actual quantity of taxation a filer owes that can be came back because of the reimbursement. And therefore, she said, ended up being an error.
At first, she had been told it might price $172 in advance to have her fees filed and mailed in aided by the RAL, but it down to $144 plus a preparer’s fee and bank fee, she said after she threatened to leave, the company knocked. Continue reading “Professionals: Avoid Tax Refund Anticipation Loans”