....I've done it before but I forget....do they base your anticipation loan on last years tax return or what they estimate your tax return to be this year?
2007-08-30 13:42:35 · 5 answers · asked by PoisonApple 2 in Business & Finance ➔ Taxes ➔ United States
I dont give a crap about the details and the interest rate so spare me the lecture. I have had taxes with held from being taken out of my check for 75% of this year and YES I KNOW what that will get me but like I asked....is it based on this year? Can you atleast answer that? Thanks.
2007-08-30 13:55:00 · update #1
The RAL is based on what a tax prep firm has determined will be your refund after they have prepared you tax return for that year. You can not get a RAL for any year other than the current year. In years past there have been loans based on estimates based on your pay stubs but those are gone. The RAL is a loan that will get you your refund a couple of weeks early but you pay a pretty high fee.
2007-08-30 13:54:53 · answer #1 · answered by ? 6 · 1⤊ 0⤋
It will be based upon what the accountant estimates your tax return to be for the year that he/she is doing your taxes for. Here is some information from H&R Block:
Refund Anticipation Loan (RAL) options
* Classic Refund Anticipation Loan - A Classic Refund Anticipation Loan is a loan in the amount of your anticipated tax refund minus certain fees. With a Classic Refund Anticipation Loan, you can pick up your loan check, minus bank fees and H&R Block fees, in as little as one to two days.**
Is a Classic Refund Anticipation Loan right for you? Find out more.
* Instant Money Refund Anticipation Loan - Walk in with your taxes; walk out with a loan check. With an Instant Money Refund Anticipation Loan, you can take out a loan in the amount of your anticipated tax refund and receive your check, minus bank fees and H&R Block's fees, today.***
2007-08-30 21:40:51 · answer #2 · answered by Princess Leia 7 · 1⤊ 0⤋
An RAL is a really great deal ;-{
First you loan your money to Uncle Sam for the year at no interest, then you pay someone high fees and interest to borrow back your own money for a couple weeks. What's wrong with this picture?
Why not have less taken out of your paycheck in the first place?
2007-08-30 20:48:40 · answer #3 · answered by Judy 7 · 1⤊ 0⤋
RALs are (were) based on the current years expected refund. But don't spend that money yet...It's my understanding that the banks have stopped backing RALs since they were losing too much money. I know Jackson-Hewitt and H&R Block are not currently planning on offering any pre-file loans this year.
2007-08-30 21:47:56 · answer #4 · answered by PixieMS 2 · 1⤊ 0⤋
Basded on what they anticipate your refund will be this year. BEWARE!! There is a fee, and if you translate that into interest rate, you are being s#####d royal.
2007-08-30 20:47:20 · answer #5 · answered by Barry auh2o 7 · 1⤊ 0⤋