Do Not Get An Economic Stimulus Refund Anticipation Loan!
Over the past few weeks, I have been getting more and more searchers landing on my blog with the terms “refund anticipation loan economic stimulus“. And if what that means is that people are looking for a way to get a refund anticipation loan for their economic stimulus check, I just have one word to say:
Don’t.
First off, the IRS doesn’t even allow refund anticipation loans for the economic stimulus (code 0248), which means that you can’t just go down to your local tax preparer and request one. They can’t help you with that, and guarantee that they’ll get your stimulus check. Not that the idea of a refund anticipation loan is a good one under any circumstance, but you can’t even get this one through the normal channels.
Am I saying it is impossible to get a “stimulus anticipation loan”? No, because I am sure that where there is a demand, there will be a supply. Maybe payday loan places will offer them. I don’t know. But I know it is a bad idea.
Please, wait for your check. Keep all of your money instead of giving some of it to whomever you get a loan through. There’s a schedule on this post of when you’ll get your check, approximately. Don’t spend the money before you have it. Just wait for the check - it will be here soon enough.
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April 16th, 2008 at 4:46 pm
Preach it! Even more than a normal tax refund, this is one of those “I’ll believe it when I see it” situations. Besides not spending money before you have it, there’s no guarantee that you’ll definitely get a certain amount. Strong presumption, but until the money’s in hand you don’t have it.
Plus, you’re letting them cheat you (or better, you’re cheating yourself) out of part of your stimulus…since you can bet it won’t be an interest-free loan.
April 16th, 2008 at 5:24 pm
Well, where’s the fun in that then?
April 17th, 2008 at 12:10 am
I can’t believe people would borrow against a cheque they have coming for any reason, sounds like madness to me. Is this an American thing? I’ve never seen this before.
I’ve got a payrise coming next month with 2 months back pay (sweet!). I can tell you I’m certainly not running up my credit card in anticipation of it. Once money is in my account, then I’ll use it (wisely in my case), not prespend it.
April 17th, 2008 at 8:10 am
It is indeed an American thing, we are the culture of “we want it now” lol
April 17th, 2008 at 9:07 am
amen.
April 18th, 2008 at 4:07 pm
[sigh] that’s all I can say.
I definitely think this “we want it now” mentality is an american thing. It just embarrasses me. I’ve never heard of another country having a credit crisis…have you?
April 18th, 2008 at 9:44 pm
Lol - I didn’t hear about this - read it here first! Talk about people with money burning a hole in their pocket — before the money even gets into their pocket! Loans for obtaining money in advance from future checks are never a good idea and should always be avoided whenever possible since the rates are always very high as well. Good article!
May 2nd, 2008 at 1:56 pm
Think thats bad? How about us poor suckers who desperately needed our tax refund to survive (in the construction business and in a bad slump) and foolishly trusted H&R Block to do a RAL. Because of that , we will be getting our stimulus check months later than those who direct deposited because the IRS refuses to direct deposit H&R Block cards - those are all paper check issued now…. I went from “I should have any day” to ” not getting till June 20!”
Those who need it the most get it last… some stimulus…
May 5th, 2008 at 4:11 pm
will my stimulus check be dd if I filed Electronically with tax act
May 15th, 2008 at 6:15 pm
Mel, If you filed through TaxAct and your tax preparation fees were deducted from your refund you will NOT be recieving a direct deposit stimulus payment.
I was low on cash at the time so I figured I’d just have the prep fees deducted from my return. Now, when I was really depending on the stimulus payment to help my family and I out, I found out that because I filed through TaxAct and authorized them to deduct the prep fees from my refund I will not be getting a direct deposit from the government I will instead be sent a check.
Now that means instead of getting the money in time for my child’s birthday (May 17), I’ll have to wait until sometime in mid-July to get it.
What a crock of shit. That’s the last time I use TaxAct…
May 18th, 2008 at 12:45 pm
It’s the same situation with Turbo Tax. At least they were kind enough to send out an e-mail the LAST DAY of direct deposits to let me know that I wouldn’t be getting one!
May 19th, 2008 at 2:57 pm
I thought mine would be direct deposited as well. I know I shouldn’t have, but I made plans around getting it on the 9th of May. I was pretty disappointed, but I only had myself to blame.
June 26th, 2008 at 1:46 pm
For those of you bashing your tax sites because you didn’t pay your fees to them and now have to wait I have a question IF it was known back in February that you wouldn’t get your stimulas payment until June or July if you did a RAL would you not then have gotten your money in 1-2 days or paid you fees up front just to have gotten your stimulas payment faster??????
The IRS made the decision in April on how the Economic Stimulas Payments were to be distributed. Oh by the way don’t forget that these were just advance payments and that you now get to claim the amount that you received in 2008 on your tax return It is appearing as if you should expect a dollar for dollar reduction in next years refund:( Another thing that most people didn’t get out of the bill.