Can I Get An Advance On My Tax Return

Gather Your Tax Documents

How do I show Student Loan and Postgraduate Loan repayments on my tax return?

The first thing to do if you want a tax refund advance is to start working on your taxes. You can ensure a smooth process by collecting all of the documents you need before getting started. Take a look at the list below for the documents that you should start looking for:

W-2 If you have a regular day job, then youll likely have a W-2 that reports your wage and salary information.

1099s If you work aside hustle or an unconventional gig as an independent contractor, then you may have 1099 to file alongside your W-2.
Schedule C If you own a business, then this form will allow you to report income and losses from that business.
1098 If you own a home and paid mortgage interest this year, then you need to report that.

Quarterly tax record If youve paidquarterly taxes through the year, then you need to include that in your filing documents.
Personal information Youll need to provide your social security number and some of your banking information to complete your tax filing.

Although this is not an exhaustive list of all possibletax documents that you might need, it is a good place to get started. For a more comprehensive list, read our article: Your tax document checklist the no-stress guide to filing your taxes.

Youve Filed Your Federal Income Taxes Now Its Time To Wait For Your Refund From The Irs But That Could Take Some Time If Youre Looking To Get Your Refund Money Quickly You Might Consider A Loan Against Your Tax Refund

If you prepared your tax return through a tax-preparation service and youre expecting a refund, you may be able to apply for a short-term loan against your anticipated federal income-tax refund. But taking a loan against your anticipated refund may have costs associated with it, as well as the risk that your refund wont be as much as you expected.

Lets take a look at how these refund-advance loans work, examine some of the pros and cons of a loan against your tax refund, and explore some possible alternatives.

Tax-refund loan alternatives

Jackson Hewitt Refund Advance

Jackson Hewitt is incredibly simple and easy to use, and has both DIY filing and options to work with a tax pro to complete your return. But, there’s no free version, even for simple tax situations.

Like H& R Block, Jackson Hewitt’s refund advance loan is issued by MetaBank.

Minimum refund for eligibility

What Do I Need To Get A Tax Advance

In order to apply for a tax advance loan through TaxAdvancesNow.com you have to meet the minimum requirements.

You must be at least 18 years
United States citizen or legal resident.

Verifiable source of monthly income
Working email address
Verifiable home and work telephone numbers.

Your state residence will determine the minimum age and if you are able to apply for an tax advance loan.

Should You Get A Tax Refund Loan

It depends on your financial situation. You could get cash right away to handle an unexpected financial emergency, pay down high-interest debt, make a big-ticket purchase or use however else you see fit.

Still, a tax refund loan could cost you a sizable amount if the lender charges fees, and youll essentially be paying to borrow your own money. And should your refund be delayed or denied if there are unresolved tax issues or you owe back taxes, you could be stuck with a hefty debt load. So it may be more worthwhile to wait until the IRS processes your refund.

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Lenders That Offer Small Loans And Fast Funding

If you dont expect to get a refund that covers your needs, or you want more time to repay the funds, consider getting a loan with an online lender that offers fast funding.

These lenders can fund a loan within a few business days and have minimum loan amounts between $1,000 and $2,000. Repaying a personal loan on time can help you build credit, but understand the risks before borrowing.

How To Get An Advance On A Tax Refund

Tax refund loans are appealing because they allow you to get a quick loan that’s equivalent to the money you’re owed from the government. Depending on the company you use, the loan can be ready for you within 24 hours of applying. That’s a pretty big difference from having to wait the six to eight weeks it generally takes for the IRS to issue your tax refund check when you submit a paper return. If you file your taxes to the IRS electronically, it typically will take less than three weeks, and the process can be expedited if you opt for direct deposit rather than a mailed check. In any case, those weeks can crawl by when you need the funds to pay your bills.

As long as you expect a refund, you are eligible to apply for a loan. You may not be able to borrow the entire amount due, however, as most companies cap the loan below your full refund amount in case the predicted refund amount is inaccurate. Many companies also have established minimums and maximums. Jackson Hewitt refund loans, for example, start at $200 and go up to $3,200, while TurboTax offers advances of $250 to $2,000.

In the event that you or your tax preparer made a mistake on your tax forms, you could get less back than you anticipated. If you borrow more than your tax refund amount, you’ll be responsible for repaying the debt your tax refund doesn’t cover. Some tax preparers will absorb the difference between what you borrowed and what your actual refund is, but ask them about their policy first.

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How Do I Get A Loan Against My Tax Refund

Tax refund advances are available at tax preparation companies like H& R Block or Liberty Tax Service, and even e-filing companies like TurboTax or TaxSlayer. In order to secure a tax refund loan, you must use their service to file your taxes, usually by a mid-to-late February deadline. The companies themselves dont issue the loan, but a partnered financial institution does. For example, H& R Block works with Axos Bank, Jackson Hewitt with MetaBank, and Liberty with Republic Bank & Trust company. To make sure you qualify, the bank will run a soft-pull of your credit card history that will not affect your credit score.

Learn more about filing taxes.

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H& r Blocks Refund Advance

First Time Filing a Tax Return?

If you need your refund now, you may want to consider filing with H& R Block. H& R Block offers something it calls Refund Advance. Its a short-term loan worth $250, $500, $750, $1,250 or $3,500 depending on your refund amount. So if you expect a refund of $600, you can apply for a $500 refund advance. It is available from Jan. 4, 2022 to Feb. 28, 2022.

H& R Block charges no interest on the loan. There also arent any finance charges or fees. All you need to do is complete a loan application. You will receive the funds for your loan, in most cases, on the same day that the bank approves your application. The loan will be on an H& R Block Emerald Prepaid Mastercard.

There are just a couple of caveats. One is that you will need to file your taxes in person at an H& R Block store. Refund Advance is not available for online filers. The second thing to keep in mind is that you will need to pay for the tax-filing service. This is more expensive in person than it is online. You may pay $200 or more just for the filing, depending on the complexity of your return.

Also Check: Can You Change Your Taxes After Filing

Eligibility To Apply For A Tax Advance Instant Tax Loan

In order to apply for a Tax Advance Instant Tax Loan your expected refund must be at least $1,200 and you must agree to file a bona fide tax return using our online services. Tax preparation fees may apply.

Warning: If you have already electronically filed your tax return using online software or a tax preparation company and then apply for a refund anticipation loan with TaxAdvance.com your loan application will be rejected and the duplicate filing may cause a delay to your actual refund. To avoid delays do not apply for a refund anticipation loan if you have already filed your income tax return.

Where Can I Get A Tax Refund Loan

Many tax preparation companiesincluding H& R Block, Jackson Hewitt and Liberty Taxlet their customers borrow against an upcoming U.S. tax refund. While these companies have many brick-and-mortar locations, they also have an online presence, so you can apply for a loan in person or online.

If you prepare your own taxes, you don’t have to go to a tax preparer to get a tax refund loan. Online tax filing services, including TurboTax and TaxAct, also offer refund loan options.

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Get A Tax Advance Loan Online

Need money now? Are you looking for a tax advance refund? If you answered yes then you are in the right spot for a tax advance. When you apply for a tax advance today you will receive an instant decision in under 90 seconds and if approved your funds will be direct deposited in to your bank account as soon as the next business day or sooner. Get started with online tax loans now by clicking the apply button below.

The application is free and there is no affect to your credit score. Its a no obligation loan offer so if you change your mind or you do not not like the rate or terms you are not required to take the loan.

Con: Usually Not Free

Getting a tax-refund loan may or may not involve paying interest. But even if the refund-anticipation loan youre approved for doesnt assess interest, there may be fees. For example, refund-advance products typically come with administrative fees associated with transferring your refund.

Every tax preparer is different some may offer tax-refund loans with no interest or fees while others may charge interest and fees on the loan. Its important to understand the fees and interest for your refund loan, and read your refund-loan agreement to ensure youre actually getting the type of loan you thought you applied for.

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How Does The Turbotax Refund Advance Loan Work

If youre one of the millions of Americans who is expecting a tax refund this year, you may be wondering how you can get your hands on that money as soon as possible. One option is to apply for a TurboTax refund advance. This loan allows you to receive your refund before its actually deposited into your bank account.

One of the biggest benefits of the TurboTax refund advance loan is that you can get your money very quickly. In many cases, you can receive the funds within 1 hour of approval. Refund advances are available in amounts of $250, $500, $750, $1,000, $1,500, $2,000, $2,500, $3,000, $3,500, and $4,000.

If youre expecting a federal refund and are using TurboTax to file your taxes, youll have the option to apply for a Refund Advance when you select your refund method.

What Are Some Good Alternatives To Tax Refund Advance Loans

Waiting until your refund comes through in 2023 is your best option. Even a simple miscalculation could lead you to expect a higher refund and accidentally borrow more money than you can afford to pay back when your refund hits your account.

If an emergency expense pops up, like an essential medical bill, car repair or other necessity, there are better borrowing options available. Weiss recommends a personal loan if you need quick funding, which will often have more favorable terms and a lower interest rate than a tax refund advance.

You could also consider a as a last resort. Just make sure you can repay the balance in full within 30 days to avoid interest, late fees and other penalties.

For more tax advice, check out our story on the key tax changes that may impact your refund next year, and learn about all of the homeowner’s credits and deductions you may be able to claim.

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What Are Tax Refund Advance Loans

Tax refund advance loans are short-term loans of $200 to $4,000 you take out when you’re already anticipating a refund from the IRS. The loan amount is deducted from your refund once its issued. In some cases, you can get the money loaded onto a prepaid card within 24 hours. The loans are usually offered from December through February.

To be eligible for a tax refund loan, you must have your taxes prepared by the company offering the loan, and that might mean youll pay a tax preparation fee. Theres a minimum amount your expected refund can be to qualify, which can vary by company, and you may get only part of your expected refund in advance.

How Does Getting An Advance On My Tax Return Actually Work

Tax Return Errors-Tips to Avoid Them

As long as you expect money back from the IRS and dont owe back taxes, you can be eligible to apply for a loan. These loans are typically small, short-term loans against your tax refund before its processed by the IRS. Typically, you will borrow a portion of what you would normally expect out of your total refund. The IRS can take anywhere between 21 days to as much as 14 weeks to process your return, and getting cash quicker than that can help Americans in a pinch. Working with a trusted preparer can help alleviate financial strain during the tumultuous Q1 period.

The amount you can get depends on the size of your return, the tax preparer you use and other factors. Bell Finance, for instance, allows its customers to apply for an advance loan up to $6,000, whereas other national brands only offer as little as $1,000. Also, the interest rate, the terms of the loan and preparer fees typically depend on which tax preparer you go with as well. Many providers will charge an interest rate and a financial charge, which typically comes out of your refund when you get it.

Those who need a short-term boost to their finances can be most helped by this type of loan those who need a longer-term, higher-paying solution may want to look into a personal installment loan or other form of loan.

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How Do Tax Refund Advances Work

You’ll apply for a tax refund advance on a tax preparation company’s website. You may need to provide proof of income, your W-2 and other financial records.

Tax refund advance loans typically don’t have the same credit score requirements other loans do, and the amount you’re approved for may depend on your expected refund amount. So, even if a service advertises $3,000 advances, it doesn’t mean you’ll qualify to receive this full amount.

You’ll receive your funds within a few business days, though some services provide same-day or next-day access to your money. If you’re required to file your taxes with a tax preparation company, the amount owed may be automatically taken from your refund. Otherwise, you’ll need to repay your loan by the agreed upon due date.

Jackson Hewitt Refund Advance Loans

Like its top competitors, Jackson Hewitt promotes no-fee, 0% APR refund-advance loans that are repaid from your federal refund. Loan amounts are offered from $500-$3,500 loans are available through February 20. The loan, called the No Fee Refund Advance, is open to customers who file their taxes through Jackson Hewitt. Like H& R Block, you have to visit a brick-and-mortar office in order to apply.

Jackson Hewitt says those with approved loans may receive their funds, via a Serve American Express Prepaid Card, within a matter of minutes. Loan eligibility is determined by a number of criteria, including your history of IRS payments.

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How Tax Refund Advance Loans Work

Tax refund loans are usually offered by financial institutions that partner with tax-preparation companies. If you apply and get approved for a tax refund advance, youll likely receive your money via direct deposit or a prepaid card.

Once the government processes your refund within a few weeks, itll get sent directly to the lender. The lender will automatically deduct your loan amount plus fees and give you any remaining funds.

Liberty Tax Easy Advance

Tax Documents Needed for Marriage Green Card Application

Deadline to apply: Feb. 28 at participating locations.

Amount of the advance: In loan amounts of $500, $800, 1,300 $2,500, $3,000, $4,750 and $6,250, depending on your eligibility. A finance charge as high as 35.77 percent is charged on Easy Advances of $2,500 or more.

How it works: Have your tax return prepared at a Liberty Tax location. Your advance will arrive within 24 hours after your return has been accepted by the IRS . Funds can be loaded onto a NetSpend Liberty Tax Prepaid Mastercard or direct deposited into an existing account.

Prepaid card details: NetSpend Liberty Tax Prepaid Mastercard has a variety of fees, including $2.50 per ATM withdrawal.

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Getting Your Money Early

No one can provide you with immediate access to all or a portion of your tax refund before it is issued by the IRS. Some tax preparation firms may offer you an advance, which is a loan against a portion of the estimated amount of your tax refund. This loan is called a refund advance loan . The amount of the advance loan is typically based on a portion of the full amount of your estimated tax refund minus tax preparation service charges and other fees. This is a short-term loan, usually for less than one month or until the IRS sends your full refund to the tax preparer.

All tax preparation firms are different. Some firms offer refund advance loans with no fees or interest, but others may charge fees and interest.

While you should always review the terms of the specific RAL, this is how a RAL typically works:

To access a RAL, you typically must have the tax preparation provider prepare and e-file your return.

The RAL provider reviews your tax return, may consider your income and credit information, and issues your loan.

A temporary bank account is set up in your name by the tax preparation provider.

The refund is deposited directly into that account.

The amount of the RAL, the tax preparation service charge, a RAC fee if you used a RAC to delay the tax preparation service costs, any RAL fees, and any other fees are deducted from the remaining refund amount in the account.

You are paid the remaining refund amount.