Another tax mystery

Also, there's the fact that your year-end paystub may differ from your W-2. Mine always does. I believe it has something to do with benefits being taken out pre-tax. My health, life and short term disability are all pre-tax.

I may be wrong, but all I know is my W-2 is always less than my last paystub of the year.

From my understanding, this girl I work with had her taxes done from her last paystub of the year and she had told me that it isn't really filing your taxes with your paystub, the bank is just giving you a loan based on your last paystub. She had told me that in order to qualify, your return had to be at least $2500, and your credit has to be decent. Then when you get your w2s, you actually go back and file and whoever gave you the loan will deduct the amount they loaned you from your actual return.

I've seen commercials from Jackson Hewitt and I think they call it a "money now loan."

Kyside, Brown sugar is right. Our local news did a segment on this the other night. You are taking out a LOAN, and when you figure up all the fees, plus the fact it's a loan, you loose alot of money. What little bit we get, I'll wait on!!..KAren

I still think it is a scam. Because when you do go back and file with the W-2 it is more fees. People are so desperate they will do anything. I am with Karen I will wait. LOL KYSIDE38

That idea of getting a loan against your tax refund is just that - a loan. In my opinion, it's nothing more than a glorified payday loan, with extremely high interest rates and fees. And on top of that, if you take the loan out, you have to have your taxes done by the tax place that gave you the loan - they take the payment for the loan out of your refund before you even get it. It may sound like a good deal, but think of it as a payday loan, multiplied by about 20.

A friend of mine said she saw on the news the other night that it cost one woman almost a thousand dollars by the time she was finished, what with paying the fees for the loan plus filing, etc. She said she had hardly anything left. I'm with you guys. I'll wait on mine an extra week or two for mine.

Dbaker - I saw the same news report and the woman who was on being interviewed was saying that she and her husband basically only got like a 1/4 of the money back after all of the fees. It was horrible! Then the next day on the radio one of the county commissioners was on the radio talking about the sam thing and also about the pdls and the complaints that he has been getting from people here in Ohio. He said something to the effect that possibley our new gov will start taking some action. I am going to listen to the interview this weekend - he was on MJI and they pod cast all of the morning show interviews. More later on that.

You guys are exactly right--and my take on it is this: if it walks like a duck and talks like a duck, it's a duck--or a PDL in this case under another name.
And when it comes to sending your W2 in, as we all know, they have to be in the mail by 1/31--and if they are not there in a reasonable time, you can ask the IRS to ask your company for it. BTW, if the IRS has to do this, it is a fine for the company.
If you don't get one by 4/15, you can estimate in a jury-rigged W2 and send that in.
The reason it's so important to send your W2 in is because of the different amounts in the boxes that are checked. For example, my daughter always had to report her tips that were in one box. The paystub may or may not have this information.
And W2's don't go to the IRS first. They actually go to Social Security first, and then the IRS gets them later in the year, which explains why some notices come out later.