Filing taxes can sometimes be disappointing and may leave you owing a lot more but if you are to get a tax refund then you could end up with a huge amount of cash. Tax refunds take months before the IRS can pay you but a tax refund advance can be a faster way to get the money.
Understanding what a tax refund advance is
A tax refund advance is a fee-free and interest-free loan of up to $3,500 that tax prep companies give during the tax season for individuals expecting a tax refund. It is similar to a short-term loan that a tax prep company advances to you which they will deduct once the actual refund comes.
Individuals who qualify for a tax refund advance are those whose taxes the company offering the refund advance prepares. This implies that you will pay a fee when they prepare your taxes. You will also be eligible for an advance if your refund meets the requirements of the tax prep company.
It is important to note that the loans get individuals to pay for tax prep services since they are available to those whose returns get prepared professionally. You could end up paying for other services such as refund transfer accounts and fees related to the prepaid debit card where you receive tax refunds.
Companies offering tax advances
TurboTax is among the ways people prepare and file taxes and customers get refund advances from $250 to $200. One has to have a minimum expected tax refund of $500 and loan amount vary depending on refund and personal information,
Jackson Hewitt offers a No Fee Refund Loan and Early Refund Advance Loan at 0% interest rate. They advance loans from $200 to $3,200 and one has to have a minimum tax refund of $300 and their taxes prepared by Jackson Hewitt.
H&R Block is another tax prep company that offers advances through February for customers whose taxes get prepared by the company. Refund advance ranges from $250 to $3,000 and one has to have a minimum tax refund of $500 to qualify.