why is it a bad idea to get an income tax refund anticipation loan?\n○ the persons employer is automatically…

why is it a bad idea to get an income tax refund anticipation loan?\n○ the persons employer is automatically notified. \n○ the loan is extremely expensive. \n○ the loan increases the persons payroll taxes reducing take - home pay. \n○ the persons credit report will always show the loan.

why is it a bad idea to get an income tax refund anticipation loan?\n○ the persons employer is automatically notified. \n○ the loan is extremely expensive. \n○ the loan increases the persons payroll taxes reducing take - home pay. \n○ the persons credit report will always show the loan.

Answer

Brief Explanations:

To determine why an income tax refund anticipation loan is bad, we analyze each option:

  • "The person's employer is automatically notified" is incorrect as these loans don't involve employer notification.
  • "The loan is extremely expensive" is correct. These loans often have high fees and interest rates, making them costly for accessing a tax refund early.
  • "The loan increases the person's payroll taxes reducing take - home pay" is wrong. Payroll taxes are determined by earnings and tax rates, not this type of loan.
  • "The person's credit report will always show the loan" is incorrect. Not all such loans appear on credit reports, and even if they do, this isn't the main reason they're bad (the cost is the key issue).

Answer:

The loan is extremely expensive.