Every tax season I see ads suggesting that getting a same day refund is an awesome way to start off the tax season. Nothing could be further from the truth.
Same day tax refund are loans.
Let’s be clear. The reason that tax preparers are so anxious to “help” you get your tax refund the same day because 1) you are taking out a loan with a very high interest rate and 2) they get a piece of that loan. Don’t be fooled by all the marketing and smiles of the people trying to sell you on same day tax refunds. There is no reason you need to spend money to get the money the government has used interest free all year. It doesn’t make sense if you say it out loud, “I’m going to pay ___(insert company name)____ $_(insert fee amount)____ to get the money that the government owes me”.
Filing electronically is safe, fast, and may be free.
Find out if you are able to have your tax return prepared for free. If you’re filing a 1040EZ or 1040 it’s entirely possible that you can have someone help you file electronically and have your refund deposited directly into your credit union or bank account. Your money will be deposited quickly, safely, and in full. Why waste upwards of $50 of your hard earned money to get your refund a week or two early?
I should start printing up shirts:
I’m reading one of my favorite books on taxes, Taxes Are a Women’s Issue: Reframing the Debate. The book urges readers, especially women, people of color, and the working poor, to better understand taxes and fight for a system that supports all Americans.
If you get a chance, pick it up. It’s a really interesting read.
Thought this might be helpful. From Black Enterprise Magazine:
1) I will live within my means.
2) I will maximize my income potential through education and training.
3) I will effectively manage my budget, credit card, debt, and other tax obligations.
4) I will save at least 10% of my income.
5) I will use homeownership as a foundation for building wealth.
6) I will devise an investment plan for my retirement needs and children’s education.
7) I will ensure that my entire family adheres to sensible money management principles.
8) I will support the creation and growth of businesses owned by people of color.
9) I will guarantee my wealth is passed on to future generations through proper insurance and estate planning.
10) I will strengthen my community through philanthropy.
These are great guiding principles to use in your financial life. Please read each one carefully and consider how it might be applied in your life. I keep a copy of them taped the refrigerator in our office to remind everyone of what we’re here to do.