The timing of when you can receive a tax refund advance depends on several factors. Typically, you must file your tax return and have it accepted by the IRS before you can get an advance. The IRS usually starts accepting tax returns in late January or early February, but you can file yours earlier if you want. Once your return is accepted, you can expect to receive your advance within a few days or weeks, depending on the method you choose. If you choose to have your advance direct deposited into your bank account, you’ll likely receive it faster than if you choose to receive it via check. Keep in mind that some tax preparation services and lenders may offer advances even before your return is accepted, but these may come with additional fees or restrictions. It’s important to compare options and choose the one that best meets your needs and financial situation.
Advance Payment Options
Taxpayers can opt to receive their tax refund advances in several ways, each with its own benefits and limitations.
- Refund Anticipation Loans (RALs): RALs are short-term loans that banks and credit unions offer to taxpayers expecting refunds. The amount of the loan is typically limited to the anticipated refund amount, minus fees. RALs are convenient but can come with high interest rates and charges.
- Refund Advance Checks: Similar to RALs, refund advance checks are provided by tax preparation companies like Jackson Hewitt and H&R Block. The funds are available in days, but again, fees and interest may apply.
- Early Direct Deposit: Most tax filing software and tax preparation companies now offer the option for early direct deposit, where taxpayers can receive their refunds directly into their bank accounts within 8 to 10 days after filing. This method is typically free of fees and convenient, but some banks may not accept refunds early.
| Option | Timeframe | Fees |
|---|---|---|
| RALs | As early as same-day | High interest rates and charges |
| Refund Advance Checks | Within days | Fees and interest may apply |
| Early Direct Deposit | Within 8-10 days | Usually free |
Tax Preparation Platforms
There are several tax preparation platforms that offer refund advances. Some of the most popular platforms include:
- TurboTax
- H&R Block
- Jackson Hewitt
- TaxAct
- Credit Karma
Each platform has its own eligibility requirements and fees for refund advances. Be sure to compare the different platforms before choosing one.
How Early Can You Get a Tax Refund Advance?
The earliest you can get a tax refund advance is typically in January. However, the exact date you can get your advance will vary depending on the tax preparation platform you use and your individual circumstances.
If you file your taxes early and choose a tax preparation platform that offers fast refunds, you may be able to get your refund advance within a few days. However, if you file your taxes later or choose a platform that offers slower refunds, it may take several weeks to get your advance.
How Much Can You Get with a Tax Refund Advance?
The amount of money you can get with a tax refund advance will vary depending on the tax preparation platform you use and your individual circumstances. However, most platforms will offer advances of up to $500.
It is important to note that tax refund advances are not loans. You do not have to repay the money you receive. However, you may have to pay a fee for the advance.
Eligibility Requirements
To be eligible for a tax refund advance, you must typically meet the following requirements:
- You must have a valid Social Security number.
- You must have filed your taxes in the previous year.
- You must have a bank account where the advance can be deposited.
Some tax preparation platforms may have additional eligibility requirements. Be sure to check the requirements of the platform you are using before applying for an advance.
Fees
Most tax preparation platforms charge a fee for tax refund advances. The fee will vary depending on the platform you use and the amount of the advance you receive.
The following table shows the fees charged by some of the most popular tax preparation platforms:
| Platform | Fee |
|---|---|
| TurboTax | $39.95 |
| H&R Block | $59.95 |
| Jackson Hewitt | $75 |
| TaxAct | $44.95 |
| Credit Karma | Free |
Tax Refund Anticipation Loans
If you need a quick influx of cash before your tax refund arrives, you can consider getting a tax refund anticipation loan. However, before you apply for this type of loan, familiarize yourself with it to make an informed decision.
Tax refund anticipation loans allow you to receive your tax refund up to two weeks earlier than the standard processing time, but the convenience comes at a cost. These loans typically come with high interest rates and unfavorable terms, making them an expensive way to access your money.
If you are facing financial difficulties and need access to your tax refund immediately, explore other options such as a short-term loan from a credit union or bank or negotiating a payment plan with your creditors.
Who Qualifies for a Tax Refund Advance?
To be eligible for a tax refund advance, you must meet the following requirements:
- You must be a U.S. citizen or resident alien.
- You must have filed your tax return for the previous year.
- You must have a valid Social Security number.
- You must have a bank account in your name.
- You must not owe any taxes to the IRS.
How Much Can You Get?
The amount of your tax refund advance will depend on the following factors:
- Your income
- The number of dependents you claim
- The type of refund advance you choose
Types of Refund Advances
There are two types of tax refund advances:
- Traditional refund advances: These advances are typically offered by banks and credit unions. They require you to pay a fee, which is usually a percentage of your refund amount. The fee varies depending on the lender and the amount of your refund.
- No-fee refund advances: These advances are offered by some tax preparation companies. They do not require you to pay a fee, but they may charge a higher interest rate on the loan. The interest rate varies depending on the lender and your credit score.
How to Get a Tax Refund Advance
To get a tax refund advance, you will need to:
- Choose a lender.
- Complete a loan application.
- Provide the lender with your tax return information.
- Sign a loan agreement.
- You must be a U.S. citizen or resident alien.
- You must have a valid Social Security number.
- You must have earned income.
- Your income must be below a certain level.
- You must not be claimed as a dependent on someone else’s tax return.
When Will You Get Your Money?
You will typically receive your tax refund advance within a few days of your loan being approved.
Earned Income Tax Credit
If you qualify for the Earned Income Tax Credit (EITC), you may be able to get a tax refund advance of up to $5,980. The EITC is a tax credit for low- and moderate-income working individuals and families. To be eligible for the EITC, you must meet the following requirements:
| Lender | Fee |
|---|---|
| Bank of America | $0 |
| Chase | $89 |
| H&R Block | $99 |
| Jackson Hewitt | $129 |
| Liberty Tax Service | $149 |
Hey there, thanks for hangin’ out with me while we dug into the ins and outs of tax refund advances. Hope you got some helpful info that’ll make tax time a breeze for ya. Don’t be a stranger; feel free to swing by again whenever you’re curious about the latest tax shenanigans or need more money advice. Take care, and see ya soon!