Free simple tax prep available

As we approach tax season, one major retailer is making trained preparers available to do free simple tax prep.

Wal-Mart has a free tax prep program for 1040EZ filers that's available through the end of February. There will be booths in 3,000 stores across the country staffed by either H&R Block Inc. or Jackson-Hewitt Tax Service Inc.

  Not to be out done by the nation's largest retailer, the IRS Free File program will offer links to free tax prep software online beginning Jan. 17, 2012.

In prior years, any taxpayer could use the IRS free tax prep. Then strict income limits went in place recently to prevent those who made higher incomes from using it. We'll have to wait and see where they set the adjusted gross income cutoff this year.

One special warning for those anticipating a refund: Many state legislatures are doing rip-off programs where they issue your refund on a debit card if you live in a state with a state income tax. You may have to pay fees to get at your own money from your own refund. It's disgusting and despicable, considering that it's your money that you made an unfortunate interest-free loan of to your state all year.

I want you to opt opt of receiving your refund on a debit card and get a paper check or direct deposit instead.

Finally, never do a refund loan. The effective interest rate you pay is typically somewhere around 600%. And besides, if you set up direct deposit for your refund, you'll get it in little more than a week. Why would you pay 600% interest just to get your money in three days instead of seven or eight days?!