Tax season can be a daunting time of year for credit union members. Some, who view their annual refund as a much-needed source of extra cash, want to maximize their refund opportunities. Others, who owe taxes, may be wondering how they'll afford payments. To ensure the process runs smoothly regardless of a member's situation, many credit unions are stepping up to help.

State Employees' Credit Union, a $23.7 billion CU based in Raleigh, N.C., for example, has partnered with the North Carolina Department of Revenue and Office of State Personnel to offer members an individual income tax debt payment loan. The loan, which the CU is offering in conjunction with the North Carolina Department of Revenue's Individual Income Tax Debt Relief Program, gives qualifying members a 5% interest rate plus a waiver of any penalties and fees associated with their tax debt, which can equal up to 35% of their total debt.

“Resolving past due tax liens can have a highly positive impact on the credit standing of a member, often resulting in lower credit costs, lower costs for insurance, housing and medical services, and improved employment opportunities in a difficult economy,” said Spencer Scarboro, senior vice president of loan originations for SECU.