You’ve probably seen the commercials. Do your taxes now, and why wait for the refund when we’ll give you the money right now? Sounds good, right? In fact, the Refund Anticipation Loans, short-term high-interest loans (50%-500%) appeal to low-income taxpayers who could use the cash right away to pay bills. But these loans are risky gambles, and a lot of New Yorkers will lose that gamble this year.
Habitat for Humanity is now sponsoring a series of talks on the Refund Anticipation Loan. They have some startling statistics. In 2004, New Yorkers lost more than $92 million of their refunds and credits through Refund Anticipation Loans. Approximately 77% of all New Yorkers who received a RAL were low-income. In many of the poorest NYC neighborhoods, and estimated 1 out of every 4 taxpayers received a RAL.
Habitat-NYC will provide information about the loans, as well as smart tax strategies for tax savings and free tax preparation sites.
Brooklyn Jubilee is assisting Habitat by trying to get the word out. We’re looking for locations to sponsor the talks by Habitat, and hoping to help some New Yorkers save their hard-earned money. If you know of any churches or non-profits we could approach to sponsor a talk, please contact Sandhya at brooklynjubilee@brooklynjubilee.org.
