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Keeping What They Earned: The High Cost of Tax Preparation and Refund Anticipation Loans

Release Date: March 1, 2008
File Size: 187 KB
File Format: pdf
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Reports from March 2008 on how low-income families in New York lose billions each year in Earned Income Tax Credit (EITC) benefits to high-interest, short-term loans, tax preparation fees, and other financial products issued by commercial tax preparers. The report warns low-income families to avoid Refund Anticipation Loans whose high interest rates cause families to forfeit a significant percentage of their refunds in order to receive their money a little earlier. The report provides action items that lifts children out of poverty by helping their working families keep more of the money they've earned.