Consumer Resources on Debt, Taxes
Free resources for tax filing and for managing debt
Tax season is here, and tax prep companies are eager to sell you their services. And, some will also sell you potentially expensive cash advance loans based on your anticipated refund.
Be very clear about refund anticipation loans and their costs.
Be aware of the free tax filing services that may be available to you
First, here’s a bit about one tax prep company’s predatory practices:
Liberty Tax misleadingly offers consumers $50 in cash “just for filing” their taxes—but does not disclose that consumers who accept the cash will be charged more than those who do not. On average (depending on which forms are filed), consumers who accept the $50 offered by Liberty Tax are then charged anywhere from $67 to $200 more for tax prep services than consumers who do not participate in the “cash in a flash” promotion.
Liberty Tax was sued for this deceptive practice - but consumers should be on alert about deceptive pricing practices.
Second, there are a number of free tax filing services available.
The Consumer Financial Protection Bureau (CFPB) offers these tips:
Here’s How to Access Free Tax Assistance:
IRS Direct File Eligible taxpayers in 25 states can file their 2024 federal taxes for free on their smartphone, tablet, or computer. Check eligibility requirements now.
VITA and AARP Tax-Aide Nationwide programs offer in-person, online, mobile, and drop-off tax prep options with IRS-certified preparers—for both state and federal returns. Learn about eligibility and find a VITA or AARP Tax-Aide site in your area.
GetYourRefund.org This virtual tax prep service allows eligible taxpayers to upload pictures of their W-2s and other documents to have state and federal taxes filed by an IRS-certified preparer. Learn more about GetYourRefund.org.
Keep in mind that while the CFPB is providing resources to help consumers with taxes, Elon and the Oligarchs want to delete this consumer champion:
What to Do About Your Debt?
If you find yourself facing overwhelming debt, one consumer group wants to help.
The National Consumer Law Center (NCLC) just released an updated (and free) guide called “Surviving Debt.”
The guide offers plans for paying off debt of various types, information on consumer rights when dealing with debt collectors, and plans for managing finances to achieve stability.
The guide includes form letters that help consumers dispute debt and prevent certain types of contact from debt collectors.
And, if you find that debt remains on your credit report even after it should have been cleared, you can fight back:
