Tax Time - Uncle Sam & Your Money By Deon Rondon

Ah. It’s that time again- Yes! tax time. Uncle Sam and Your money. Who can forget the wait two decades or more ago when it took at least 5-6 weeks before receiving your income tax refund. Luckily the wait has been slashed in half, even less! New tax preparation softwares and advanced technologies have taken it’s place in the “tax-scape”. But being very careful when filing your taxes is the number one priority for guaranteed success. No short cuts.

Some important IRS rules apply. But common sense is your friend. Stay vigilant when it comes to your money and who is getting it. Internet based and even down-loadable tax preparation software boasts electronic “File for free” fill and submit forms - Beware of such claims. Not all are designed to enhance your return and will just cost you money in the end. We tried four tax preparation softwares for 2008 and 2009 two of which are reputable in the business and boast every feature that are only meant to entice your pocket.

Then, there are the “Quick Refund” money gremlins - here is why we are skeptical of these too. You get your refund in 24 hours or less. In most cases you can get part of it the same day. Don’t get too excited over this- why? With this comes additional fees and fine print which when added up can be an astronomical cost. These “Quick Refunders” usually have a store front with tax clerks who are crash trained. They potentially also promise many

accelerated refund options, with another phrase “Faster Refund” but fail to disclose two words up front; “Greater Cost!”.

Just so that you are aware, the “Quick Refund” and “Faster Refund” options are actually loans offered by a bank- one such bank is located in California. If you hate reading fine print like many of us, maybe this is a good time for you to take a closer look. In your rapid refund paperwork, you will be in for an unpleasant surprise when you find out the rate of interest being charged for these loans. Interest can range from 60 to 100 percent or more! Many, many people ignore these percentages and will gladly pay. Don’t let it be you!

There are many points to cover but your number one source of information should always be directly associated with the IRS. You can go to the official web site www.irs.gov or call 1-800-829-1040 for all tax information or write to them and request the information you may need. If you file your tax return electronically remember that your account information will be utilized, be sure it is in safe hands. You can expect to see your refund in about 2 to 3 weeks, or even sooner in some cases. Keep in mind that the few honest electronic and non- price gouging services may charge a small and fair fee for electronic filing, but it is not even close to the massive interest charged for the “Rapid Refund” and “Faster Refund” loans.

Usually the IRS will issue direct deposits every Friday, so you can expect to see your refund on Friday of the week following the week you filed your taxes. If you file a state refund for any reason they can sometimes come even sooner.