In this essay I will be writing about the different tax preparing methods, and what tax preparing method I would choose. And what I think about tax refunds. (disclaimer: I am not from the US, so I had to pretend that I was from the US to write this essay properly).
There are many different ways to prepare your taxes. The different ways are: having your taxes prepared by a professional tax preparer, an online tax preparer software, and finally do it by yourself. I would choose a combo of the first and last option, this is because getting an online tax preparer does not sound that safe to me, because there is the risk of getting hacked, which is not good. Having a professional help you prepare your taxes can be quite helpful since it saves “your” time to do other things; but most likely I would be preparing my taxes by myself. Doing it by hand is probably the safest and cheapest option, out of the three.
Tax Refund Advance
What is a tax refund advance? A tax refund advance is a short term loan that allows you to borrow money from your tax refund before you actually receive the money. Usually this type of loan has a high interest rate. The interest rate for this type of loan can be very high, maybe even up to almost 40%, which is ridiculous in my opinion. But there are still many other tax refund loans that are only 0% APR.
In my opinion if the tax refund advance option has an interest rate involved, then I would only ever use it if I need money right away, for an important reason; other than that if the interest rate is very high, like almost 40% high, then what is the point to lose a good amount of money in order to use part of it right away.
This is my personal finance essay on tax preparation and tax refund advance.