If you’re considering a national tax preparer that promises faster refunds by offering Refund Anticipation checks (RACs), get the full story.
With RACs, a temporary bank account is opened to allow for direct deposit, and taxpayers’ refunds are then uploaded onto a prepaid debit card or they are issued a paper check. In 2008, about 12 million taxpayers received a RAC at a cost of $360 million. This was the COST to these taxpayers.
Do you really need a refund anticipation check? Refunds come fast with e-file and direct deposit – generally 4-7 days for the state refunds and 9-15 for federal refunds. Federal and state refunds can be directly deposited into a checking and/or savings account. There are no fees involved for this.
For more information on this topic or other tax news, contact any of our Tax Forward representatives in Carrington, Jamestown and Fargo.
This advice is for general information purposes only and may not apply to you. Every tax situation is different. This is not intended to be legal advice. Taxpayers should consult a Tax Forward representative regarding their individual tax situation.