![]() ![]() 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). Your qualification depends largely on the amount of money that you will be refunded by the government. 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.īecause tax loans do not have as much risk as unsecured loans, credit score requirements are usually not as restrictive. 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. A financial advisor can help you budget for unexpected expenses and offer advice on dealing with them when they arise.Ī tax refund loan is officially known as a refund anticipation loan (RAL). Refund advances are also a popular alternative. But what happens when you need the money before the IRS sends your refund? You may want to consider a tax refund loan. It functions like other short-term loans, but the loan amount is based on your refund amount. Taxpayers often rely on this money to boost their retirement savings or save for a home. The IRS says that the average tax refund in 2022 was $3,039, a 7.5% uptick from the previous year. SmartAsset: Where Can I Get a Tax Refund Loan?įor many Americans, filing federal income taxes means getting a refund. ![]()
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