Professionals: Watch Out For Tax Refund Anticipation Loans

Professionals: Watch Out For Tax Refund Anticipation Loans

March 14, 2005 — Elizabeth Robinson of Newport, Tenn., a 40-year-old single mom with one grown daughter as well as 2 in the home, worked being a housekeeper year that is last. Whenever she filed her taxes final month, she utilized a nationally understood commercial income tax preparer and qualified for the Earned Income Tax Credit offered to families with incomes under about $35,000.

Confronted with an unusually high bill that is electric of than $80, Robinson plumped for a reimbursement expectation loan, or RAL, that provides an income tax reimbursement in a few days and it is guaranteed centered on a taxpayer’s anticipated reimbursement, including the EITC, which decreases the quantity of income tax a filer owes and may even be returned aided by the refund. Continue reading “Professionals: Watch Out For Tax Refund Anticipation Loans”