Speaking of taxes #4

[Sheherezade]

How does everyone feel about this "Get your refund on a gift card" program? I'm thinking that's only Turbotax.....actually, I'm hoping it's only Turbotax. We figured out we would get a decent refund last night, and DH was joking around about putting it all on a Starbucks card. That's a latte dough.

I hadn't heard about it - but at first glance I think it's a bad idea. People won't think it through, or consider that they could just as easily deposit the $ in the bank and then spend it at that establishment if they wanted. Plus, a lot of what gift card vendors count on is people losing the cards, or not using the entire balance - and some have annual "fees" if you carry the card for more than a year. Per card it's a minimal fee, but they add up.

For those that have no debt and visit Starbucks daily - it would work (I know you were joking Angie - but I have a friend who would actually USE a refund's worth in a couple months).

It's marketers taking advantage.

[Vanquisher]

I have seen that (when using TurboTax), and they also have them for Hope Depot, I think, and other big retailers. I think, if you were doing a major project, and were going to spend your refund in this way, it might be worth looking into. For a lot of us, the money is already spent, and the prospect of getting extra money, but in the form of gift cards to a certain establishment is not appealing at all.

Here is an FAQ

http://www.turbotax.com/refund_bonus/rb_faq.html

[SueC]

Well, it sounds like a brilliant plan for Home Depot, or whatever company is guaranteed to get your entire refund! I personally won't take the bait, even if I am planning on spending the entire refund on home remodeling.

[PrincessFiona]

WHAT?! I have never heard of this! Bad idea....put it in the bank! NO....I have a better idea...put it in my bank. I'll hold onto it for you. :>

kris

[Vanquisher]

Upon reading more, it does not have to be your entire refund, but let's say you got $1000 and had your eye on a new dishwasher somewhere that costs $500 or something. You could spend $400 or some number and get a gift certificate for $500.

I don't think it is necessarily a bad/horrible idea for people who use it responsibly. There, of course, is shipping and handling involved and such. You can get up to 80 cards to different retailers for one refund. Blah, blah, blah. Anyway, it might be useful if you had something in mind for a specific purchase.

[DCJenn]

The Washington Post JUST did an article on gift cards in the business section. Apparently they're in a serious grey area of regulation since typically the person who buys them is not the person who uses them.

the bank card gift cards (AMEX, Visa, MC) have hidden fees and practices which basically suck a lot of the value from the cads over time. for example, some of the bank cards charge a fee for each month that the card isn't used. (nice- give someone a gift, they wait and lo and behold, it's worthless) Another neat little trick the card companies are doing is not allowing the card to be used in conjunction with other cards or cash and/or not allowing the card to be used for an amount that's over the amount of the card. (i.e. you are at Borders, you have a 25 dollar Borders card and a 25 dollar VISA card. Your total is 35.99. Borders will allow you to use their card plus however you want to make up the difference- but VISA doesn't. So, you hang onto the VISA card and end up buying gum with it, but you can't get change.

It's a giant scam in some ways.

I'd take the cash and buy whatever it is that I wanted in the first place.

http://www.washingtonpost.com/wp-dyn/co ... 01985.html

Jenn