Most tax prep companies offer the ability to have fees withheld from refunds (at a higher fee than necessary, in my opinion). The difference is, the client has to wait for IRS to issue the refund instead of receiving it "instantly" as a loan. I've seen cases where the "refund" represents 50% of their earnings. Given some education, these folks should be able to manage that amount for the rest of the year so they don't get into a desperate situation come tax time again. Low-income earners are seen as victims of a financial industry where they do not have bank accounts, access to credit, etc. They are the ones who most need to handle their finances prudently, yet choose not to avail themselves of services that could help them learn to do so. These same "victims" are savvy enough to know that keeping money in a bank account prevents them from receiving welfare benefits in the form of subsidized housing, food stamps, etc. When the money is just handed over because they meet certain criteria, they have no incentive to better their circumstances.