Avoiding the Pitfalls of Refund Anticipation Loans

As the 2008 tax filing deadline is fast approaching and millions of families are struggling in the economic recession, this report, from the Children’s Defense Fund, found that low-income families lose billions of dollars each year to predatory commercial tax preparers and highlights the importance of tax credits for working families. In tax year 2006, low-income families lost $3.1 billion of their Earned Income Tax Credit (EITC) benefits to high-interest, short-term loans, tax preparation fees, and other financial products issued by commercial tax preparers.