How to Not Get Ripped Off When Filing Taxes

In this day and age, it is possible to get your tax refund relatively quickly. Here's how to do it without paying an arm and a leg.

Instructions

Difficulty: Easy

Things You’ll Need:

• Common Sense

1. Twenty years ago you would have expected to wait at least 6 weeks before receiving your income tax refund. Nowadays you can get your refund in 24 hours or less--or even part of it on the same day--if you're willing to pay the fees.
2. The cost of such a quick refund is astronomical. Jackson Hewitt, H&R Block and Liberty Tax Service all offer various accelerated refund options, and the faster the refund, the greater the cost. These "refunds" are actually loans offered by Santa Barbara Bank and Trust in Santa Barbara, California. If you read the fine print in your rapid refund paperwork, you will be unpleasantly suprised by the rate of interest being charged for these loans. API for rapid refunds usually ranges from an incredible 60 percent to 99 percent, which many ignorant people eager to get their refunds will gladly pay.
3. You don't have to be one of these suckers. If you file your tax return electronically and include your bank account information, then you can reasonably expect to see your refund in about 2 to 3 weeks, or even sooner in some cases. There may be a charge for electronic filing, but it is nothing like the interest charged for the rapid refund loans.
4. Furthermore, there is no cost to include your bank information, and this information is completely safe because of encryption. The IRS will issue direct deposits every Friday, so you can usually expect to see your refund on Friday of the week following the week you filed your taxes. State refunds can sometimes come even sooner.

Tips & Warnings

• This information is only intended as educational material and will not be appropriate for everyone. There will, of course, be times when some taxpayers may need money immediately for various reasons, and a rapid refund can provide this.