Turbotax loan advance9/28/2023 If you are looking for a loan that lasts more than a couple of weeks, a tax refund loan is not the best choice for you. So if you claim those credits, and are filing early, you may have to wait longer than usual. For 2022, when you file your 2021 taxes, the IRS says that the earliest date you could expect get an EITC/ACTC refund will be the first week of March. Under federal law, the IRS cannot provide tax refunds right away for people who claim these credits. The people who most commonly receive tax refund loans are taxpayers who file early in the tax season and claim the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC). While the IRS issues refunds typically within 21 days after getting your return (and can take over six weeks for paper returns), some lenders could get you the money faster, depending on your refund option. Or perhaps your emergency fund isn't quite big enough and you could really use the money from your tax refund. Maybe it's February and you have a major bill coming up. The most obvious reason to consider a tax refund loan is because you need money quickly and for the short-term. And if you want to pre-qualify as a candidate, you may need to provide your Social Security number, contact information, and the refund amount that you got for the previous tax year. You should keep in mind that some lenders may also review your credit history. Tax loan lenders will verify your identification, weigh your tax history with the IRS, and consider how much debt you owe. Your qualification depends largely on the amount of money that you will be refunded by the government. How to Qualify for a Tax Refund Loanīecause tax loans do not have as much risk as unsecured loans, credit score requirements are usually not as restrictive. The only other thing to keep in mind is that if your refund is smaller than your tax refund loan, you will still need to pay the loan back in full. At this point, your loan is repaid and you made it through tax season. Once the IRS processes your refund, it will go directly to the lender. Some lenders only offer one of those methods while others may offer multiple options. You may receive the loan on a prepaid card, on a check or as an electronic deposit in your bank account. The loan that you receive from a lender will have the value of your anticipated refund minus any fees or interest charges. Tax refund loans typically only last a couple of weeks – just long enough for the IRS to process your tax refund. Many tax filing services will also offer you a tax refund loan after you file with their service. This may require a little research on your part to make sure the lender is reputable. Lenders are often small financial institutions. It is a loan that a lender makes based on the amount of your federal income tax refund. The loans are backed by your expected refund, and are usually repaid by (that is, deducted from) your eventual IRS refund.A tax refund loan is officially known as a refund anticipation loan (RAL). The tax-refund advance is a short-term loan that gets you what's owed to you (or, at least some of the amount), sometimes as soon as the day you file. Filing an error-free return is important, too.įollow this formula, and the IRS says, even in this age of the pandemic-related backlog, most taxpayers will receive their refunds within 21 days.īut what if you want your refund sooner than soon? What if you need it now? If you want to get your federal tax refund as soon as possible, then the basic advice is this: File as soon as possible file online, perhaps via the IRS-backed IRS Free File or a commercial service like TurboTax or H&R Block and, when filing online, request your refund be sent to your bank or designated online account via direct deposit. Commercial loan options exist for those who want their money ASAP. Taxpayers filing online and with direct deposit should generally expect to see their refunds in 21 days or less. In 2022, tax day for most Americans is April 18. Promotions are subject to availability and retailer terms. We may receive commissions from some links to products on this page. CBS Essentials is created independently of the CBS News editorial staff.
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