Taxpayers may be in for a big surprise when it comes to getting their income tax refund in advance.
Better Business Bureau Investigator Bill Smith says it may be tempting to get the money quickly from a refund anticipation loan, but you should pay close attention to the fine print and understand the full price you’ll pay. The short-term loans often come with interest rates between 50 and 500-percent, which could take a pretty significant chunk out of the refund.
He also urges taxpayers to be careful about who they let prepare their taxes. Smith says some fly-by-night tax preparers are only in business to rip off their customers and steal their identities.