Tax time either makes you excited about the possibility of a refund or in dread of what you owe. Now is the time to make the right choice so that if you are getting a refund you can get the most possible. Choosing a free tax prep company over a refund anticipated loan is the best decision for your money. Anxious to receive a refund consumers sometimes choose companies that promise your refund the day you go in. Many of these companies are giving consumers a “refund anticipated loan”(RAL) which means interest rates and additional fees for consumers. According to the Department of Agriculture, Trade and Consumer Protection, “When all the costs of an RAL are added up, you can be spending more than 10% of your refund just to get your money a few days earlier.”
A better decision is an IRS authorized free tax service provider. To find a free tax service, visit the IRS Free File website -
www.irs.gov/freefile. Users will find a list of Free File Alliance member companies and may either choose the one that fits their needs or utilize the “help me find a company” tool. After selecting a tax software company, users will be transferred to the company's website to prepare, complete and electronically file their federal income tax returns. There are also often local sites that will work with you in person to file with you.
Both the State of Wisconsin and the United States Government allow tax payers to e-file their taxes, therefore cutting what was once a several weeks wait for a refund check into just a few days before you receive your refund in most cases.
You can avoid a RAL and get your tax refunds back quickly when you e-file and chose direct deposit – again both the state and federal governments do this. With e-file and direct deposit most filers get their return in 10 days without having to pay the high costs of RAL’s. Also consider using a VITA (Volunteer Income Tax Assistance) site to get your taxes prepared and filed. VITA sites offer free tax preparation to low and moderate income individuals, many will e-file for you right there. VITA sites are generally located at community and neighborhood centers, libraries, schools, shopping malls, and other convenient locations. Most locations also offer free electronic filing.
Find a VITA site near you or call 1-800-906-9887.