Are you waiting for a tax refund to pay off your loan? Well, you’re not alone and there’s a solution for every case always. You’ll be able to get a loan against your tax refund, when tax companies partner with banks that will lend you the money.
If you choose the right tax preparation service, you’ll be able to pay off your loan once you receive your tax refund that goes to your bank directly. This is a very practical solution if you need the money right away instead of waiting for your tax refund to arrive.
A tax advance refund is a free short-term loan that allows you to get your refund amount sooner. The loan amount offered is based on your expected tax return refund. Usually, you will have to have your taxes filed by the same tax preparation company ahead of their advance refund deadline.
When do we receive our tax refund?
Tax advance can be given the same day or within 24 hours once you’ve applied depending on your case and which company is working for you.
Some tax returns may take longer to review and be sent out later than three weeks.
How Do I Qualify for a Tax Advance Refund?
If you expect to receive a refund from the IRS then you are eligible to apply. Depending on your expected tax refund amount, there may be a minimum loan amount that you can borrow.
How much does a Tax Refund service cost?
Many tax preparation services will offer a tax advance refund or tax loan with no interest or fees, but they will charge you for preparation fees to file your taxes or process the loan. Those costs can take a cut out of your expected tax refund amount.
Something to take into account is that the IRS offers for free to file your taxes if your income is below $66,000.
Will a Tax Advance Refund Loan Hurt My Credit Score?
It depends on how the bank providing the loan qualifies you during the application process. If there is a hard inquiry made into your credit report then yes, your credit score will be impacted. If your bank just reviews, or only makes a soft-inquiry into your credit report, then your credit will not be affected by it.
Also,the IRS could reduce your refund if you have any of the following:
- Overdue federal tax debts
- Past-due child support
- Federal agency non-tax debts
- State income tax debt
- State unemployment debt
- Student loan debt
- Small Business Administration (SBA) loan debt
- Department of Housing and Urban Development (HUD) loan repayments
So that’s all for today, hope you found this article useful so far and don’t hesitate in reaching me out if you have any questions or need a consultation.