During tax season, you could wait patiently for your tax refund. It’s all part of the process, right? Life goes on while you’re waiting. There are unpaid bills, unforeseen costs, or perhaps inflation has destroyed your finances recently. You might be asking yourself, “Is there a way to get access to money quickly? Can I get a loan on my tax refund?” when something unforeseen happens.
We offer the Refund Advance loanDisclaimer number109 because we recognize the financial impact that any delay in your refund may have. Scroll to bottom of page. When submitting an application at H We’ll explain how to apply even if you choose to use digital drop off.
What are tax refund advance loans?
Short-term loans known as “tax refund advance loans” are paid back with your next IRS tax refund. Typically, loans are available from December to February, with amounts ranging from $100 to $6,500. Usually, after the loan is issued, the amount is subtracted from the tax refund.
Certain loans can be repaid in a few days as a direct deposit into a bank account or in as little as 24 hours on a prepaid card.
You may be required to pay a tax preparation fee if you choose to have your taxes prepared by the loan provider in order to qualify for the majority of tax refund loans. Only a portion of your anticipated refund may be provided in advance, and tax preparers may have minimum refund amount requirements.
If you need money right away, a tax refund loan is an option; however, if you can wait, you can avoid paying fees. For those who meet the income threshold, the IRS offers a free filing option in collaboration with tax preparers. Depending on how you file, it may take three to eight weeks to receive your tax refund.
Where to get tax refund loans
Jackson Hewitt offers two refund advances. The Early Refund Advance loan, which has a 35. The 53% annual percentage rate will be available beginning in December 202023, and the No Fee Refund Advance loan, which has a 200% annual percentage rate, will be available in January 202024. Republic Bank & Trust Company issues both.
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Minimum federal tax refund amount |
For Early Refund Advance Loans of $1,000, the minimum refund is $2,600. Jackson Hewitt did not specify minimums for other loan amounts. |
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Loan amounts |
Early Refund Advance: $100, $300, $500 or $1,000. No Fee Refund Advance: $250, $500, $750, $1,000, $1,500, $2,500, $3,500, $4,500 or $6,500. |
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APR |
Early Refund Advance: 35.53%. No Fee Refund Advance: 0%. |
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Time to funding |
Within 24 hours if you have the money loaded onto a prepaid card. Funding can take one to five business days if you want the loan deposited into a bank account. |
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Requirements |
You must have your taxes prepared by appointment at a Jackson Hewitt location. The Early Refund Advance requires a recent pay stub, government-issued ID and Social Security card. The No Fee Refund Advance requires a W-2 and other tax documents. |
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Tax preparation fee |
Varies and determined during your tax filing appointment. |
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Deadline |
The Early Refund Advance is available from Dec. 11, 2023, through Jan. 14, 2024. The No Fee Refund Advance is available from Jan. 2, 2024, through Feb. 11, 2024, at most Jackson Hewitt locations. |
H&R Block
H&R Block also offers two advances. The Emerald Advance loan is available through December 2023. In contrast to loans for tax refunds with no interest, the Emerald Advance has an annual percentage rate of 35. 9%. You have the option of repaying the loan with a check, debit card, or bank account transfer, or with your tax refund. The loan must be repaid by March 31, 2024.
H There are no fees or interest associated with the Refund Advance, but you must file your taxes with H Pathward, N. A. , issues the Refund Advance loan.
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Minimum federal tax refund amount |
H&R Block did not specify a minimum refund amount. |
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Loan amounts |
Emerald Advance: $350 to $1,300. Refund Advance: $250, $500, $750, $1,250 or $3,500. |
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APR |
Emerald Advance: 35.9%. Refund Advance: 0%. |
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Time to funding |
Same-day funding is available. The loan will be available through an H&R Block prepaid card or spending account that you receive during your appointment. |
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Requirements |
Emerald Advance: You must provide proof of identification and income. Having a tax refund is not required for this loan, but it can be used for repayment. Refund Advance: You must have your taxes prepared at a participating H&R Block office, receive a sufficient refund amount and provide proof of identification. You must also meet certain credit and other underwriting requirements. |
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Tax preparation fee |
Fees start at $89, and there may be an additional state filing fee. |
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Deadline |
The Emerald Advance loan is available at participating locations from Nov. 1, 2023, to Dec. 31, 2023. The Refund Advance loan is available from Jan. 2, 2024, to Feb. 29, 2024. |
Intuit TurboTax
First Century Bank provides funding for Intuit TurboTax’s Refund Advance loan, which has no interest. Unlike other tax preparers, TurboTax allows customers to apply online. In order to access the loan, borrowers who are approved must open a Credit Karma Money checking account.
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Minimum federal tax refund amount |
$500. |
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Loan amounts |
$250, $500, $750, $1,000, $1,500, $2,000, $2,500, $3,000, $3,500 or $4,000. |
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APR |
0%. |
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Time to funding |
Funds are deposited into a Credit Karma Money Spend checking account within minutes after your return is accepted. A debit card can take one to two weeks to arrive. |
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Requirements |
There are several eligibility requirements for the TurboTax refund advance. Here are some of them:
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Tax preparation fee |
TurboTax online products vary from free to $359. |
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Deadline |
The refund advance loan is available until Feb. 15, 2024. |
How do tax refund loans work?
When you use a tax preparer to file your return, you also submit an application for the refund loan.
Typically, tax preparers collaborate with a bank to provide the funding. As an instance, Republic Bank
The bank may examine an applicant’s credit profile without influencing their credit score, but tax refund loans typically don’t have the same credit score requirements as unsecured loans.
Qualification can depend on the amount of your expected refund. Identity verification and an examination of your tax return data and history are prerequisites for tax refund advance loans.
After your loan is approved, the money will usually be deposited into your bank account, or you can access it quickly through a checking account that the tax preparer provides, a prepaid card that may have additional fees and restrictions, or both.
When the IRS releases your refund, the tax preparer will automatically deduct the loan amount plus any interest from it.
How much does a tax refund loan cost?
Depending on the complexity of the return, tax preparation fees can change even though a tax refund loan might have no interest.
Let’s say that a month later, you receive a $500 tax refund loan secured by your refund. If you pay the $89% tax prep fee in order to file your taxes, the amount is equal to an annual percentage rate of 217 percent. However, your assessment of the loan may differ if you were required to pay for tax preparation anyhow.
Interest fees on certain tax refund loans can make even small loans seem pricey. With Jackson Hewitt Early Refund Advance, a $100 tax refund loan has an annual percentage rate of 35. 53%, according to the company’s website. Prepaid card fees and tax preparation costs are not included in that, and they can add up on a small loan.
Even though getting an advance can be a quick way to get cash, it might be less expensive to wait for your refund to come directly from the IRS.
Pros and cons of tax refund loans
- There’s often no hard credit pull.
- Most loans are interest-free.
- Funding is fast.
- You will likely have to pay a tax filing fee.
- It could be necessary for you to open an account or debit card with the tax preparer of your choice.
- The loan is subtracted from your IRS tax refund.
Tax refund loan alternatives
You could look elsewhere for a loan of the same amount at a lower interest rate, then use your refund to pay it back.
Apps for loans offer a fee-free or minimal advance on your salary. Normally, the app allows you to borrow up to a few hundred dollars, and on your next payday, it will take the advance out of your bank account. Loan apps, however, might charge a subscription fee, a fee to receive funds more quickly, or request an optional tip. These apps aren’t a long-term solution, but they can be useful if you need money quickly.
Depending on the type of loan, members of certain credit unions can obtain payday alternative loans ranging from $200 to $2,000. The maximum annual percentage rate (APR) for these loans is 20%, and the application fees are capped at $20.
Some online lenders offer $1,000 small personal loans, with funding available the following day upon approval. Rates vary from 6% to 3%36, and requirements differ for each lender. The lowest rates are available to borrowers with good or excellent credit (690 or above), high incomes, and little debt.
Lenders that offer small loans and fast funding
Consider applying for a loan from an online lender that provides quick funding if you don’t think you’ll receive a refund large enough to meet your needs or if you would prefer more time to pay back the money.
These lenders have $1,000 as their minimum loan amount, and they can fund a loan in a few business days. Building credit can be facilitated by timely personal loan repayment; however, be aware of the risks before taking out a loan.
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Lender |
Minimum loan amount |
Time to fund |
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Upgrade 5.0 NerdWallet rating NerdWallets ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more. |
$1,000. |
Same or next business day. |
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Upstart 4.5 NerdWallet rating NerdWallets ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more. |
$1,000. |
Same or next business day. |
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LendingClub 4.5 NerdWallet rating NerdWallets ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more. |
$1,500. |
One to three days. |
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Best Egg 4.5 NerdWallet rating NerdWallets ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more. |
$2,000. |
Same or next business day. |
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Universal Credit 4.0 NerdWallet rating NerdWallets ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more. |
$1,000. |
Same or next business day. |
|
Prosper 4.5 NerdWallet rating NerdWallets ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more. |
$2,000. |
One to three days. |
If you’re expecting a refund, you can get a short-term loan through a tax preparer called a tax refund loan. It enables you to receive your refund early, and as soon as the loan is granted, it is subtracted from it.
Indeed, tax preparers such as H
Generally, tax preparers offer tax refund loans from December to February. Nevertheless, precise timings may differ based on the tax preparation provider.
After the IRS accepts your tax return, some tax preparers can fund a tax refund loan in as little as one hour. For others, it can take a day or two.
Usually, when you file your taxes at a tax preparer, you apply for a tax refund loan. H What is a tax refund loan?.
If you’re expecting a refund, you can get a short-term loan through a tax preparer called a tax refund loan. It enables you to receive your refund early, and as soon as the loan is granted, it is subtracted from it. Can I get a loan based on my tax refund?.
Indeed, tax preparers such as H When are tax refund loans available?.
Generally, tax preparers offer tax refund loans from December to February. Nevertheless, precise timings may differ based on the tax preparation provider. How fast can I get a tax refund loan?.
After the IRS accepts your tax return, some tax preparers can fund a tax refund loan in as little as one hour. For others, it can take a day or two. If I’ve already filed, can I get a loan against my tax refund?
Usually, when you file your taxes at a tax preparer, you apply for a tax refund loan. H
FAQ
Can I get an advance on my tax refund now?
Bring your most recent pay stub to your appointment as early as December to find out if you are eligible to apply for an Early Refund Advance of up to $1,000. You can apply for a Refund Advance loan in January and finish filing your taxes by bringing in your W-2 and other tax documents until February 11, 2024.
Can I borrow against my tax refund?
Typically, loans are available from December to February, with amounts ranging from $100 to $6,500. Usually, after the loan is issued, the amount is subtracted from the tax refund. Certain loans can be repaid in a few days as a direct deposit into a bank account or in as little as 24 hours on a prepaid card.
Can I get a personal loan with my tax return?
If you need cash right away but have a tax refund coming, you should think about getting a tax refund loan. A tax refund loan is typically offered at a 200 percent annual percentage rate (APR); however, it is typically only available at specific times throughout the year, and there may be preparation fees involved.
How can I get my tax refund early?
How to get your tax refund early. You can increase your chances of receiving the new, larger refund early by using a top tax preparation service right now and filing your taxes early in the tax season, before the competition for refund returns heats up.
Read More :
https://www.nerdwallet.com/article/loans/personal-loans/tax-refund-loans-give-cash-now-to-early-filers
https://www.hrblock.com/tax-center/around-block/offers/can-get-loan-tax-refund/