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Posted: Fri Dec 29, 2006 8:21 pm Subject: Tax Returns in December?

I wrote on my blog today concerning tax returns in December. I saw something that was kinda interesting today. Please read my blog and tell me what you think of my topic for today.

Posted: Fri Dec 29, 2006 8:27 pm Subject:

Alexandra,

I agree with you. It's nothing more than a loan, and very similar to a PDL - you pay it back as soon as you get paid. I realize, too, that sometimes the circumstances are extreme and people need to pay off a bill immediately; but to get this money which, as you said, you do pay for services on, just because you don't want to wait a little longer to get it and then to blow it is bizarre.

Posted: Fri Dec 29, 2006 9:11 pm Subject:

I just read your blog about the December tax return and H & R block has been offering this since mid-November b/c I work with a girl that went and had it done. She took in her most recent paystub and walked out with a $1500 debit card. From my understanding, it is some type of refund anticipation loan and they do check your credit history. My co-worker also told me that the loan from H & R Block is offered through HSBC bank, and once she get's her actual W2's, she has to go back and file her taxes with H & R Block, so she can receive the rest of her income tax refund, so I'm assuming that they only give so much of your refund right now b/c she told me that she usually get's $4000 back every year.

Posted: Fri Dec 29, 2006 9:47 pm Subject:

But how much are they charging her for this service?

Posted: Fri Dec 29, 2006 9:56 pm Subject:

The loans generally last about 10 days before the refund arrives and can carry annualized interest rates as high as 700 percent. WOW

Posted: Sat Dec 30, 2006 7:23 am Subject:

I saw that ad too, and all I could think was ...

"good old H & R Blockhead"

I have to thank them though, because due to their incompetence and screw-ups, my entire family and some friends now ask ME to do their taxes for them. I don't charge $200 - $400 to do it (like H&R routinely does), they're done within a couple of hours, and I let them sit right here and look at the computer when I do it, so they see EVERYTHING that's being done, and if they don't understand, I explain it.

What they are doing is a big problem - your last paystub may not accurately reflect what shows up on your W-2 when you get it....

Posted: Sat Dec 30, 2006 7:27 am Subject:

A few years ago I got one of those Refund anticipation loans from H&R Block. I got my money in 2 days, they deposited it into my account. I wasn't dissatisfied with the whole deal, I really needed the money; but it did cost me $300. I'm glad it's something I don't have to do anymore.

Posted: Sat Dec 30, 2006 7:31 am Subject:

Wow, $300 for a RAF...that's incredible. At one time I considered doing returns for H&R during tax season to earn extra money, but once I started hearing the horror stories from friends and family, I changed my mind. I don't want to be part of that organization at all.

Posted: Sat Dec 30, 2006 7:33 am Subject:

H&R has been under a lot of fire recently, especially with their RALs. I didn't have a problem, but I've read about some lawsuits from people who have!

Posted: Sat Dec 30, 2006 7:35 am Subject:

I personally know of people who have been charged over $400 to have their taxes filed because of "special circumstances that required extra work" on H&R's part.

Family members have had tax returns screwed up three years in a row before coming to me for help with it. (The IRS found the errors and returned the tax return to H&R for correction before issuing the refund in one case, and in the other, H&R screwed up the figures on the return, causing a larger refund - and my family member had to pay it back to the IRS - over $3,000 worth.)

No one in my family will go to them for taxes any more.

Posted: Sat Dec 30, 2006 7:39 am Subject:

We have too many odds and ends now, like profit sharing, IRA, stock, and 401k. I don't want to risk getting that screwed up! We go to an accountant..I bet we pay maybe $10 more than H&R charges. It's worth it for the peace of mind.

Posted: Sat Dec 30, 2006 7:59 am Subject:

If you have multiple W-2's, stock plans, own a small business or have circumstances that make your return more complicated than the average person's, I definitely recommend going to an accountant to have your taxes done. Yes, it's more expensive, but in the long run, it's for the best.

Posted: Sat Dec 30, 2006 8:18 am Subject:

Exactly..We don't have the money to throw away on tax errors!!

Posted: Sat Dec 30, 2006 8:20 am Subject:

That's so true, fins - and NO ONE needs an audit by the IRS when someone else screws up their taxes!!

Posted: Sat Dec 30, 2006 8:29 am Subject:

I sent a suggestion to Mike and Denny seeing if they think replacing the Christmas Budgeting Forum with a tax forum for 2007. i think that it would be helpful just as long as there is a disclaimer that all people should seek their tax advisor professional advise b4 filing or something like that

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