Have you seen the ads for “instant money,” “rapid refunds” or “electronic refund advances”? These tax services often take a large part of your tax refund. Don't be fooled by flashy ads!
What do these tax service companies really offer? They give you a very expensive loan. The interest rate on the loan can cost you from 173% to more than 200% interest per year!
There are other problems with these loans. What happens if the tax preparer makes a mistake? What happens if the IRS withholds your refund? You still have to repay interest on the loan you got from the tax service company.
You'll get more of your tax money if you wait for the IRS to give you your refund check in the normal time. Usually, it only takes 2 to 4 weeks to get your refund. E-filing (filing online) is even faster – if you e-file, you will usually get your refund in 7 to 10 days.
Why pay a company hundreds of dollars for a “rapid refund”? The “rapid refund" will only get to you a few days earlier – and your refund will be a lot less money! Why not save those hundreds of dollars for yourself and your family?
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