Upside / Downside to Cash Back Tax Refunds

This is the full story about how everyone pays a premium for cash back features. 

Many of you probably know that you can have your income tax refund the same day when you have your taxes prepared with a business that prepares income tax and offers " Cash Back" services.

Did you realize that you are paying for this service?   What is the cost? Do You Know?

The cost can be as much as 10% of the balance of the refund not including the additional cost of preparing the return.

Think about what you could do with the extra money. You would only have to wait about three weeks for your refund if you E-filed your return. The refund can be directly deposited to your bank account if you wish.

Prepare your own Income Taxes to save even more!

Don't worry, if you are not sure how to do the paperwork there are other alternatives:

• You can telefile your income tax return by telephone, call 1-800-959-1110. All you need are your T4's, Rent, Childcare Receipts, Education Expenses and any other tax related information
• File your return over the Internet using Netfile, receive your access code online at www.netfile.gc.ca
• For more information visit the Canada Customs and Revenue Agency website at  www.cra-arc.gc.ca/
• The income tax forms can be printed from the website www.cra-arc.gc.ca/
• You can have access to your own personal tax return

Software can be purchased for a nominal fee which may assist  you to complete your own tax return. Most of the software programs prompt you through each of the steps and perform the calculations for you. You may be able to E-file using these software packages designed to assist you to file your income taxes.

If you E-file and have your return directly deposited to your bank account these steps will shorten the waiting time for your refund considerably.