LocalSYR

Are rapid refunds a ripoff? The Real Deal

It's tax time, and if you're getting a refund, you may not want to wait for your money. We've told you before about refund anticipation loans, but those are harder to come by now. However, many tax shops still offer options to get your money back faster.
Syracuse (WSYR-TV) - It's tax time, and if you're getting a refund, you may not want to wait for your money. We've told you before about refund anticipation loans, but those are harder to come by now. However, many tax shops still offer options to get your money back faster.

A rapid refund might sound like a great idea, but beware, because it could cost you.

Peggy Penders with the Better Business Bureau says, “Any time you get a refund from a third-party, you are going to pay some sort of fee.”

Those fees can add up, sometimes to hundreds of dollars, and they can be hidden.

Not all companies charge the same fees, so shop around. Most big tax service chains offer quick money options.

“They want to ask if they are any processing fees, they want to ask if there are any interest rates being charged to them for using this, and really kind of compare ‘what would my refund look like if I did not use this service versus what would my refund look like if I do use this service’ and make a decision,” Penders says.

The IRS says 90 percent of refunds are paid out within 21 days. Sometimes it takes longer. But in the long run, the Better Business Bureau says you'll keep more money in your pocket.

New this year, if you file your taxes online, you can start tracking your refund the next day on the IRS website. Click here to visit the page.

Page: [[$index + 1]]