Why Pay? Get Your Taxes Filed for Free!

December 14, 2011

More than half of all taxpayers pay a tax preparer to file their tax return. Did you know you may qualify to get your taxes prepared and electronically filed for free at a Volunteer Income Tax Assistance (VITA), or AARP Tax-Aide site near you? 

Did you know?

• Commercial tax preparers charge as much as $100 to prepare a return claiming the Earned Income Tax Credit (EITC).You may pay as much as $100 more if you get a Refund Anticipation Loan (RAL).
• ·Sometimes RALs are advertised as money now, fast cash, Christmas loans, advance line of credit, or a rapid refund. RALs are loans with extremely high interest rates. If there is an error on the return and the IRS doesn’t send the entire refund, you will still be obligated to repay the loan.
• Because of changes in IRS policies, RALs are now harder to qualify for. Borrowers without a good credit history may not qualify for these loans.
• RALs are sometimes promoted through car dealerships or appliance centers that offer to prepare your tax return for use as a downpayment on in-store purchases.
• RALs provide a fast cash loan (1 to 2 days) on your tax refund, BUT having the IRS refund deposited directly into a bank account takes only about 7 - 10 days. Is the difference worth paying $200 or more?
• If you (and your spouse if filing jointly) earned $42,000 or less OR you are a senior (50 or older) tax preparation and electronic filing are free!
• The North Carolina Central University School of Law is offering free tax preparation through VITA. 
• Location: NCCU Law School Legal Clinic, 640 Nelson Street, Durham, NC
• Saturday, January 28, 2012 through Saturday, March 31, 2012
• Fridays (4pm-7pm)
• Saturdays (9am-3pm)
• Other dates may be added to the schedule