|
|
Resources for Savers
Taxes - Why Pay When You Can Get Your Taxes Done for Free?
More than half of all taxpayers pay a tax preparer to file their tax return.
Before using a commercial tax preparer, find out if there is a Volunteer
Income Tax Assistance (VITA) site nearby that can help you prepare your
taxes for free.
- Commercial tax preparers charge an average of $100 to prepare a return
claiming the Earned Income Credit (EIC).You may pay as much as $100 more if
you get a refund anticipation loan (RAL).
- Sometimes RALs are advertised as “fast cash” or a “quick tax refund.”
RALs are loans with extremely high interest rates. If there is an error on
the return and the IRS doesn’t send the refund, you will be stuck having to
repay the loan.
- RALs are sometimes promoted through car dealerships, furniture outlets
or jewelry stores that offer to prepare your taxes and try to convince you
to use refund loans for in-store purchases.
- RALs provide a fast cash loan (1 to 2 days) on your tax refund, but
having the IRS refund deposited directly into a bank account takes only
about 7 to 12 days. Is it worth paying $200 or more for a RAL?
- If you earn under about $35,000, you can get free tax filing help
through the IRS-sponsored VITA or Tax Counseling for the Elderly (TCE)
programs. Both programs can provide fast electronic tax filing.
- Community volunteers receive IRS-approved training to assist individuals
with tax returns. Some VITA sites can help you open a bank account if you
don’t have one.
Call the IRS at 1-800-829-1040 to find the nearest VITA location and its
days and hours of operation.
Reference:
Back to Resources
for Savers
|
