Income Taxes and Refund Checks

dollardaze · #1 01-27-2009, 09:37 PM

It seems that right now we all need money, and we all need it right away, so it's hard not to fall for the "get your money before you even get your W-2s" or "get your money as you file your taxes" ads that we see on television. Every year we're inundated with these ads, and they are tempting, especially so this year, with all the lost jobs, the economy being in the toilet and bills piling up.

With all the fees to pay for the loans, tax preparation, and filing this can cost a bundle that would be better spent for food, shelter and other necessities.

Quote:

Not only can the loans be costly -- interest rates can top 700 percent, they say -- but they carry an element of risk. If the IRS denies any of the consumer's deductions or credits, resulting in a refund that's smaller than the loan, consumers still have to repay all of the money borrowed

says Jean Ann Fox, a Consumer Federation spokeswoman.

If you file online yourself, instead of having it done by a tax preparer, you can receive your refund in just 10 days, and save yourself a lot of cash in the process. The eligibility of taxpayers who can file for free online has increased to 70%, which amounts to around 98 million. If your adjusted gross income is $56,000 or less, you can file online at no charge through a partnership that the IRS has with several tax-preparation companies. Further information can be found at www.irs.gov

pennypinch · #2 01-28-2009, 02:35 AM

Do these companies that offer the service for free offer it to those who are self-employed? I am asking because I have looked into a few companies who will let you file online for free but only if you have an easy claim, not self-employment. If they do, this would be great for me.

dollardaze · #3 01-28-2009, 09:06 PM

To check on this for you, I went to www.irs.gov and looked under the most commonly filed Federal tax forms, under free filing, and listed were Schedule SE (self employment) and also Form 8829 (Expenses for Business Use of Your Home). There is also a button to click for "Help Me Find a Company". I think this could be a great option for you.