![]() This money is usually loaded on a pre-paid card and takes between 1-3 days for you to receive, as opposed to the three weeks it takes for the IRS to issue you your return. Instead, they work with a bank that lends them the money, which is then loaned to you. In most cases, the company will not issue you a loan using their own capital. Most companies require you to use their services in order to get a tax refund advance, which can be a disadvantage if the service price is more than your refund loan amount. To get an advance on your tax return, it’s best to use tax preparation services to ensure you file properly. It’s always better to use a tax preparation service to avoid this error, but if your return is denied, you could have a hefty loan looming over you and find yourself in the need of tax resolution There’s a chance Uncle Sam could deny your income tax return.Since your loan is based on an anticipated return amount, if you end up receiving less money on your tax return, you could face high interest rates and penalties if you don’t promptly repay the loan.If you have a difficult tax return, the cost of using a tax preparer to file your tax advance refund can be more expensive than your actual refund amount.Tax preparers will only issue you a portion of your refund with a set dollar amount. You can’t get the entirety of your refund in your tax advance.Because a tax advance is a loan, you’ll technically be in debt until you receive your actual refund and pay it off.A tax refund advance won’t affect your credit score and most tax preparers don’t check your credit score prior to issuing you a tax advance loan.This means you won’t pay anything extra besides the standard cost of tax preparation services. Almost all tax refund advances come with 0% APR.You can get your money faster, in as little as 24 hours.Below, you’ll find out more about the pros and cons of tax refund advances so you can decide whether this option is right for your current financial situation. We’re here to help you make that decision for yourself. As with all decisions, there are advantages and disadvantages. ![]() If you’ve been researching early income tax loans or a cash advance on income tax refund, you’ve probably come across different opinions on whether or not you should take the advance. It’s advised to consult with a professional to answer any tax refund questions you have and to properly fill out your return.Īdvantages and disadvantages of a tax refund advance Tax preparers look at how much you’re expected to receive from your tax refund and base the loan on your projected refund amount. You get this loan before the IRS actually processes your return. It’s important to remember that a tax refund advance is a short-term loan against your income tax refund. However, with a tax refund advance, you can get a portion of your refund in as little as 24 hours. When you normally file your tax return, it will take around 21 days for you to receive your refund in the form of a check by mail or direct deposit from the IRS. ![]()
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