With the new year comes tax season, and places offering same-day refunds in the form of loans may be tempting. However, consumer groups are warning that rapid refunds may be unnecessary and the quick money could be costly.



Julie Burbach could not wait to get her hands on her tax refund. As a struggling single mom, she signed up for Rapid Refund, a loan offered by H and R Block that gives tax refunds on the spot. When Burbach looked closer at the service, she couldn't believe how much it had cost her. "I don't think it's good. It's not right," Burbach said. The year before, H and R Block charged Burbach $201 for tax preparation and Rapid Refund fees. This year, it cost $342. "It took her about 10 minutes to do my taxes," Burbach said. Duane Schwarzbauer is a certified public accountant. "I'm assuming she was just focusing on the refund and probably didn't realize how much she was being charged," Schwarzbauer said. Schwarzbauer, who also prepares taxes, said customers can get fast refunds just by filing electronically with the IRS. "The computer takes the information, sends it right to the IRS computer and they get the refund within like two weeks, sometimes within eight days," Schwarzbauer said. Most people do get their refunds in two weeks. If you want your refund on the spot, the National Consumer Law Center said the average person will pay a 187 percent annual interest rate.

Judge Swagwire is against any form of a loan against your tax refund. Wait those 8-10 days for your refund check! Also, if you don't have any complicated financial situations like a business, then challenge yourself by preparing your own taxes. There is tax software like Tax Cut that is really easy to use.