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“Magic” Money a Mere Illusion

Refund Anticipation Loans & the Earned Income Tax Credit in West Virginia

In 2007, working West Virginians with modest incomes lost nearly $13 million of their federal EITC refunds to tax preparers who promised them “fast cash” in the form of Refund Anticipation Loans (RALs). EITC recipients disproportionately use these short-term, high-cost loans. With three out of ten EITC recipients purchasing a RAL in 2007, approximately five percent of the federal money intended to help these working families make ends meet was redirected into tax preparers’ pockets.

Visit http://www.wvpolicy.org/ralb.html for additional information.

Last Updated (Friday, 19 March 2010 19:46)

MHCCR&R is funded through a grant from DHHR, Bureau for Children and Families, Division of Early Care and Education.
MHCCR&R was established in 1992.

MountainHeart Community Services, Inc. is a private, nonprofit 501(c )(3) community action agency that was incorporated in 1965 in accordance with the economic opportunity act of 1964. The organizational mission of MountainHeart is to reduce the incidence of and lessen the impact of poverty among West Virginia residents.

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