Jackson Hewitt & Walmart Start Very Early

[Lee B]

Jackson Hewitt Tax Service has opened early in 3,000 Walmart stores nationwide.

Clients can get started on their taxes with their latest paystub and other income verification documents, the tax prep giant said, and can see if they qualify to receive an Express Refund Advance of up to $1,300, a no-fee, zero-percent APR loan.

The amount of the advance will be deducted from refunds and reduce the amount that is paid directly to the taxpayer. Returns may be e-filed without applying for this loan.

Approved clients may receive $200 on a Walmart eGift card the same day they complete their return with Jackson Hewitt. These clients will then receive any remaining loan balance when they provide their W-2 and file their return. Loans are repaid when clients receive their refunds.

I am very confident that all the other fees will cover the "no fee zero percent APR loan".

[Possi]

Once they get the money up front, what's to stop them from filing their own return and getting a full refund?

I'm glad I don't compete with these tax-in-a-box-ers.

[Gail in Virginia]

11 minutes ago, Possi said:

Once they get the money up front, what's to stop them from filing their own return and getting a full refund?

I'm glad I don't compete with these tax-in-a-box-ers.

Generally speaking, once you have e-filed you can't e-file again.  I don't know what would happen if they tried to paper file; JH, etc. isn't going to see any refunds if they qualify for EITC or CTC until after 2/15 as I understand it.

 

[Possi]

The original post said the clients could qualify for a refund before the tax return is actually filed. Or did I read this wrong?

"Approved clients may receive $200 on a Walmart eGift card the same day they complete their return with Jackson Hewitt. These clients will then receive any remaining loan balance when they provide their W-2 and file their return. Loans are repaid when clients receive their refunds."

So, they are not actually filing the returns until the client provides the W2.

Maybe I'm all wrong.

[SaraEA]

efile doesn't even start until Jan 23.  This smells to me like something HRB has offered for awhile--a refund advance you could get in Dec., offered mainly to returning clients (ones who had a history of getting their real refunds without offsets).  The no fee, zero percent seems to me like "if it sounds too good to be true....."  Someone has to pay for the risk that the client doesn't return/repay/qualify for a refund, and I'm sure it isn't JH or the bank.

Sad that some people are so desperate for their refunds.  Maybe this year when the money doesn't show up until late Feb the mindset will start to change.

[BLACK BART]

4 hours ago, Possi said:

The original post said the clients could qualify for a refund before the tax return is actually filed. Or did I read this wrong?

"Approved clients may receive $200 on a Walmart eGift card the same day they complete their return with Jackson Hewitt. These clients will then receive any remaining loan balance when they provide their W-2 and file their return. Loans are repaid when clients receive their refunds."

So, they are not actually filing the returns until the client provides the W2.

Maybe I'm all wrong.

That's also the way I understood it.

[FDNY]

Another interesting addition to this tax season is Credit Karma's offer of free federal and state tax returns with support.  I'm sure to lose a few this year to them but they will surely be the ones I would be happy to sacrifice.

[Terry D EA]

It is mind boggling to see the number of clients who don't recognize or care about the amount of interest they are paying on these products. The article in the original post makes reference to two "loans". I picked up a new client last year that was part of the HRB debacle of get part of your refund Dec 15th so on and son, and said when it was all said and done, the total cost was close to $500.00. I can't afford to throw away $500.00 and I know I sure could do a lot with it.

[Gail in Virginia]

The problem is that the people who do this aren't actually getting "refunds" they are getting money they never had - EITC and CTC.  So if the government (you and I) wants to give them "free" money and the cost to get it comes out of the "free" money, they don't care.  This is one reason I have never liked EITC.  I have a whole list.

[Jack from Ohio]

9 hours ago, Gail in Virginia said:

The problem is that the people who do this aren't actually getting "refunds" they are getting money they never had - EITC and CTC.  So if the government (you and I) wants to give them "free" money and the cost to get it comes out of the "free" money, they don't care.  This is one reason I have never liked EITC.  I have a whole list.

DITTO!!  Well said!!!

[Catherine]

21 hours ago, Gail in Virginia said:

This is one reason I have never liked EITC.  I have a whole list.

There are a bunch of us who have very similar lists.  If we put those lists together end to end, there might be enough length to encircle the Capitol Building and prevent the legis-vermin from getting IN to cause more trouble for us!  (I can dream can't I?   )

[Abby Normal]

On 1/5/2017 at 10:52 AM, Gail in Virginia said:

The problem is that the people who do this aren't actually getting "refunds" they are getting money they never had - EITC and CTC.  So if the government (you and I) wants to give them "free" money and the cost to get it comes out of the "free" money, they don't care.  This is one reason I have never liked EITC.  I have a whole list.

It was originally supposed to be a refund of Social Security and Medicare taxes, but it's grown beyond that. It's really a subsidy to the businesses that do not pay a living wage for those who work full-time.

[Lion EA]

And for those employees who know exactly how much to make, when to quit, to make the highest EIC while sometimes supplementing with unreported cash jobs.

[Jack from Ohio]

5 hours ago, Lion EA said:

And for those employees who know exactly how much to make, when to quit, to make the highest EIC while sometimes supplementing with unreported cash jobs.

These days, most fit this profile.

[SaraEA]

Lion, I'm no fan of EITC, but I've always disagreed with the argument that people know how much to make and then quit so they can maximize the credit.  Most recipients aren't qualified for big-bucks jobs.  Take someone who makes $10 hr X 40 hr work week X 50 weeks = $20k income.  If they have a child they are eligible for a big credit.  Someone who makes $20k isn't likely to stop working mid-year because they really need the money.  Someone who makes $30 an hour isn't likely to quit after four months just to maximize EITC.

EITC was expanded to replace welfare during the Clinton years.  It was pretty successful in getting people to work because there were lifetime limits on welfare benefits.  Now to get the money you had to have EARNED income.  The biggest problem with the system is that it's so easy to cheat.  The IRS should never have been given responsibility for administering the program.  Welfare used to handled by social service agencies, but Congress wanted to make it look like EITC was not welfare so handed it to IRS.  It wasn't welfare--people had to work to receive it--but they were ending "welfare as we know it."  I think it should be administered by social services, real people who look at actual documents to determine eligibility.  Instead of being IRS police, we tax pros will just prepare a normal return, hand it to the client, and let them take it to social services for their EITC.  End of fraud (and much refund ID theft).

[BLACK BART]

On ‎1‎/‎1‎/‎2017 at 8:41 AM, FDNY said:

Another interesting addition to this tax season is Credit Karma's offer of free federal and state tax returns with support.  I'm sure to lose a few this year to them but they will surely be the ones I would be happy to sacrifice.

Well, some won't be missed, but many are just ordinary blue collar people in low-paying jobs who legitimately qualify for EIC and are not a problem.  In the last several years I've lost a bunch of those "short forms" (it was quick, easy money) to TurboTax and the other tax-in-a-box outfits.  It's not hard to see why: a 2/3 lower price and no "third-degree" 8867 grilling - just enter what you want, audit odds are low, but if overpaid (whether intentional or accidental) and checked, simply say "I did it the best I could - I don't know anything about taxes." And, as we know, IRS doesn't pick on "poor people" -- they prefer to gouge we unscrupulous tax preparers. 

Oh well, enough crying - I got to see a little payback recently.  At the bank I ran into a lady who knows I'm in the business.  Said she always files online through TurboTax, but (of course) asked me some questions anyway.  "Using them again," I asked?  "No," she said. "They're too high now; they still want $30 to $60.  I'm switching to Credit Karma - theirs is free!" (So -- TT experiences "karma" through Credit Karma.)

[RitaB]

14 hours ago, BLACK BART said:

Well, some won't be missed, but many are just ordinary blue collar people in low-paying jobs who legitimately qualify for EIC and are not a problem.  In the last several years I've lost a bunch of those "short forms" (it was quick, easy money) to TurboTax and the other tax-in-a-box outfits.  It's not hard to see why: a 2/3 lower price and no "third-degree" 8867 grilling - just enter what you want, audit odds are low, but if overpaid (whether intentional or accidental) and checked, simply say "I did it the best I could - I don't know anything about taxes."

Absolutely correct.  We get hired to solve a problem.  If it doesn't matter if the return is accurate, people who don't care about accuracy don't need us.  We get back the ones who get audited.  That's it.