Filing your Federal and State Taxes

For some individuals, tax preparation services are free of charge. But some these individual especially those seeking the refundable tax credit under the Earned Income Tax Credit opt out of using the free tax preparation services for several reasons. One reason is the refundable tax credit. Some individuals participate in trading children for the tax credit. This practice may be legal in certain situations, but for many it is not. Therefore they tend to use tax services that will overlook the tax code mandate on claiming the credit. Especially, since some low income women have filed in the past and were not caught in prior years. However, taking this risk, if caught, the offenders can be find liable to the Internal Revenue service and can be or disallowed from receiving the earned income credit for up to 10 years, even if eligible in those years for claiming the credit

Another reason for opting out of using the free tax services is need for getting their tax refunds quick. Some tax payers are unwilling to wait the 7 to 10 days or three weeks under the free tax service. Instead, these individuals seek out tax services that will provide loans within 15 minutes after determining client eligibility for a refund. These rapid loan services also provide loans on same day in some cases. These loans are based on the amount of the return and fees are involved sometimes in the range of hundreds of dollars.

However, the advantage to using the free service is that if there are no outstanding tax obligations or bank loan obligations, a return can be deposited into an account or two which will speed up the process since they are going directly to the Internal Revenue service. In addition, hundreds of dollars are saved without having to pay for the other type of quick and rapid service. It’s your money and the free service wants you to pocket your money.