1. Don't go to H&R Block or Jackson Hewitt or Liberty Tax. If your return is actually complicated, you should have a real accountant (enrolled agent, CPA, lawyer). If it's as simple as most people's returns (W-2 income, maybe 1099s, a mortgage, child care, student loans) then you should be doing it yourself using one of the excellent online filing applications.
2. Absolutely do not get an "instant refund" or "refund anticipation loans." They are predatory loans with fees and interest representing an annual percentage rate of 50-500%.
You now not only paying H&R Block an obscene amount of money to do a few simple data entry tasks, now you're paying them an even more obscene amount of money to give you your own money! You lent the government your money interest-free during the year when your employer collected payroll taxes from you. Your refund is YOUR money! You deserve ALL of it!
Instead, file and wait the 8 or so days that it'll take for the IRS to deposit your refund into your checking or savings account.
In general, the effective annual percentage rate (APR) for a RAL can range from about 50% (for a $10,000 RAL) to nearly 500% (for a $300 RAL). If a $40 add-on fee is charged and included in the calculation, the effective APRs range from about 85% to nearly 1,300%. An average RAL of $3,300 carries an APR of 72%.
National Consumer Law Center (PDF)
(More refs: Kiplinger
Tax Girl and an excellent report by the Community Reinvestment Association of North Carolina (PDF) )3. FREE FILE!
New York state free file options:
I've used Taxslayer and I-Can EFile (not free NY options:
)The IRS will also help you find a company to free file or efile with. I've used TaxAct (one of the paid versions)
for about eight years. Pennsylvania's direct efile site is pretty easy, and free!
Free Tax Help Available Nationwide
R-2010-15, Jan. 29, 2010
WASHINGTON - Nearly 12,000 free tax preparation sites will be open nationwide this year as the Internal Revenue Service continues to expand its partnerships with nonprofit and community organizations performing vital tax preparation services for low-income and elderly taxpayers.
The IRS Volunteer Income Tax Assistance (VITA) Program offers free tax help to people who earn less than $49,000. The Tax Counseling for the Elderly (TCE) Program offers free tax help to taxpayers who are 60 and older.
I'm happy to rant about this if you'd like me to continue :-) Everyone should have a basic understanding of what their paystubs say, how payroll taxes work, W-4s and their annual income taxes. This should not be a big mystery or intimidating.
If you don't have a bank account to direct deposit your refund into, you should (unless you're trying to stay off grid, of course). This helps you build credit history and legitimacy. There are several good area banks that help contribute to a healthy local economy by keeping investment here, including First Niagara, Northwest, Lake Shore, and Five Star. (Thanks to (e:dcoffee) for this link)
Another option is the Buffalo Coop Credit Union if you're a member of one of the participating coops, such as the Lexington Coop.Hope this helps!
thanks heidi! the postit was from me, but i don't think I was logged in, so thanks!
I've used turbotax for the last several years... this year was a total ripoff b/c they wanted $35 for states- and I have to pay CT and NY. But, in the end I decided it was worth it to just have it all DONE in one click, rather than fight with trying to find sites that do states for free. It seems most places do federal for free, but not states. And, I like the way turbotax stores everything from the previous year, so it's really quick. Though I'm sure they all do that.
Really in the end I was lazy and decided it was worth it to pay and just have it done with- even though that was probably really silly of me.
(so in exchange I'm helping my BF find a way to do his online for FREE, AND with e-file. I think we can do it.)
The key (e:metalpeter) is to follow the links under the NYS Dept of Taxation website. I have had your problem in the past where they try and charge you for the state when your half way through them. :::link::: Like (e:heidi) said, they will allow you to do it for free and it is pretty easy. I followed the taxfreedom.com link and that is via turbo tax but I have used taxslayer before too and that is good also. If you want I can help you with it, just send me a message and you can come over with your docs and it should be done in less than an hour. There are some credits you could miss if your not looking for them. One is the making work pay credit and the other is the credit you get on student loan interest. It is best if you have a copy of your taxes last year, because they want to know your AGI (Adjusted Gross Income) from last year in order to verify your identity.
I have never e-filed it was annoying to me. Now let me explain why. I got some book and you go to this website but some (legit) places only do federal and some only do state and some do both, I found it very confusing. It wasn't like there was a big master list of the places that did both. I think those tax places for a lot of people are a good idea. There are so many people who have no clue how to do their taxes or they have like kids who they are claiming but they aren't their kids (yes this happens a lot), can't really do that with a lawyer. Yes I do agree that those loans are predatory and hurt the people who need the money the most. Some people get their money the same day they get there forms. Not sure if it is legal anymore but there used to be places, yes I have seen the ads where you can bring in your last paycheck of the year and they will do you taxes based on that and give you your money then, I guess they file them. Take it one step farther I have seen ads for car dealerships and I think furnature places where you can bring in your tax stuff and they give you the amount of money that you would get from your taxes. So say I want a couch and a love seat and a bed I just take my tax stuff. Again not sure if this is still legal or not. But when you have 2 or 3 kids and don't have a lot of income or at least not compared to how much tax you pay some people get back thousands of dollars.
I'm not going to a tax place. I just wish there was an easy way to do NYS, I heard that there was a way not to fill out the form and have them figure out the money for you but haven't figured that out yet. Once I'm ready I'll check out your links.