(Cash Before Payday) Consumer Smarts: Loans on tax refunds can be costly (Seattle Post-Intelligencer)
Tax time means you’ll soon be bombarded with offers to get your federal income tax refund early through a “refund anticipation loan,” or RAL. Denny Eliason, a lobbyist for H&R Block, told lawmakers last week that such retailers — payday lenders, check cashers, insurance agents, community groups or others — would only act in a clerical capacity, passing along applications but not giving tax advice. The United Way, AARP, Washington ACORN and Seattle University, for example, have volunteers who can help you file your income tax return free of charge. By using Free File and choosing direct deposit, you can get your income tax refund within about 10 days — almost as fast as you would if you got a refund anticipation loan, but without paying the fees. Use a free online program to complete your tax return and file it free electronically free. Learn more
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