It is safe to say that nobody feels happy when the tax season is approaching. Filing a tax return can be an unwanted task, but it can be surprising because you may owe more than you expect. On the other side, you may get tax refunds as well, and you can get even thousands of dollars even without waiting long.
Often tax refunds don’t always arrive fast enough. It can take several months to get your refund from the IRS. There is a way you can get your money much faster. That is a tax refund advance.
Tax Refund Advance- Defined
Tax refund advance can be defined as getting money (tax refund) earlier than expected or due on the IRS’s part. But how? Well, many tax prep companies can give you advance money even before the refund is due. Then, when the tax refund funds are available, these companies deduct the amount you have already borrowed1.
Generally, these companies make the funds available to you in 24 hours or so, and most don’t charge interest. These tax advances can be up to several thousand dollars2. However, these companies have other terms of services. That said, you will have to pay the company a fee for preparing and filing your tax returns or other tax requirements if you take an advance refund from them3.
How Can You Get A Tax Refund Advance
Currently, there are many tax prep companies in the U.S offering these services in the tax season.
Turbo Tax
There are several better ways to prepare and file your taxes, and Turbo Tax is one of them. If you are eligible, you can get an advance between $250-$3000, and after filing your taxes, you will get the funds within two days4.
Eligibility Criteria
To Qualify for Turbo Tax, you must meet these conditions:
- The minimum expected tax refund must be $500
- You have to use the Turbo Tax option for filing your taxes.
- You have the approval for Turbo Visa Debit Card
- You are a resident of any of the accepted states
Jackson Hewitt
There are two types of tax refund advances in this option
- No fee refund loan
- Early refund advance loan
There is zero percent interest on these options, and the maximum advance limit is $40005.
Eligibility Criteria
To qualify for this option, you must meet these requirements:
- The minimum expected tax refund must be $300
- Office of Jackson Hewitt prepares your taxes/tax returns
- You have W2, Pay subs, or any other verifiable income source
H&R Block
You can get this service if your taxes are prepared at an H&R Block office. With this option, you will need a Prepaid Mastercard to get an advance refund of up to $3200 within 24 hours6.
Eligibility Criteria
You must fulfill these conditions to qualify:
- The minimum expected refund must be $500
- Your tax returns are prepared at the H&R Block office
- You must fulfill specific credit requirements
Get an Advance on Your Refund This Year
Tax prep companies have made it easier to get some or all of your tax refund in advance. But you can get these services if you are proactive. Companies offer these services in the early tax season. Mostly, these advance refunds are available as long as companies have available funds. Therefore, act smart and get an advance tax refund as early as possible.
1. https://www.thebalance.com/refund-anticipation-loans-315626
3. https://www.credit.com/taxes/what-is-a-tax-refund-advance-loan/
4. https://turbotax.intuit.com/refund-advance
