Tax time is fast approaching. We have not filed yet. I’m starting to get antsy about it. I know we still have a month and a half. I know that we have an extra few days to file by April 18. I’m still feeling anxious that we haven’t bought TurboTax or started compiling our documents. I’m rather looking forward to it this year. I sold hardly any Avon, so I don’t have much to compile there and I’ve never made any money at it. About half my income last year is W-2 reported instead of all of it on a 1099. We get our refund quickly because we sign up for direct deposit. It’s so easy.
We used H&R Block to do our taxes our first married year. We’ve used TurboTax or similar software every year since. I love the commercials for H&R Block and Jackson Hewitt, though. I’m almost tempted to let one of the companies proofread our return to make sure we didn’t miss anything.
One of the features that these tax companies push is refund loans. The company will extend a loan to the filer for the refund amount so the filer doesn’t have to wait the days or weeks it takes to get the refund from the IRS. I see these loans as being like payday loans. The fees are high and the interest rates are usurious.
The people who depend on refund anticipation loans may run into problems getting one this year. The fees are higher and fewer companies may offer them. The IRS is not going to verify loan eligibility, called a debt indicator. If the companies cannot verify if they will get the filer’s refund in addition to fees and interest, what motivation do they have to provide the loan? Jackson Hewitt will continue to offer loans.