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 solitary mom with one grown daughter as well as 2 in the home, worked being a housekeeper a year ago. Whenever she filed her taxes final month, she used a nationally known commercial income tax preparer and qualified for the Earned Income Tax Credit accessible to families with incomes under about $35,000.

Confronted with an unusually high electric bill of more than $80, Robinson plumped for a reimbursement anticipation loan, or RAL, that offers a taxation reimbursement in just a few days and it is guaranteed centered on a taxpayer’s expected reimbursement, such as the EITC, which reduces the quantity of income tax a filer owes that can be came back using the reimbursement. Continue reading “Professionals: Watch Out For Tax Refund Anticipation Loans”