So you’re with the professional tax preparer, who has promised you a sizable tax refund.  He offers you an “instant loan” on that refund, because you don’t want to have to wait for your money…What should you do?  Don’t take it!

Many professional tax prep companies will offer you an “instant” loan on your refund.  What that means is the tax preparer will let you have your projected refund on the spot, even though the IRS still has to process your return.  These are NOT a good deal.  Most companies charge a loan fee and  filing fee, as well as a very high loan percentage rate.

There are many other ways for you to file your taxes — for FREE — and still get a refund within a few weeks.  For example, the IRS offers free filing online to lower income individuals and families.  The AARP will assist retired individuals.  At  VITA sites non-profit volunteers will prepare your taxes for FREE…and even file them for you, if ou’d like.  So before you opt for the RAL, check out your other options.