You should do this if you want to receive your federal tax refund as soon as possible: Do your taxes as soon as possible, and if you do so online, use either the IRS-backed IRS Free File or a commercial service like TurboTax to request that your refund be sent directly to your bank account or other designated online account.
It’s also critical to submitting a tax return that’s free of mistakes.
Even in this era of the pandemic-related backlog, the IRS says that most taxpayers will receive their refunds within 21 days if they follow this formula.
Suppose, on the other hand, that you need your money back right away? You may not have time to wait.
It’s a short-term loan that can get you your tax refund or at least a portion of it as soon as the day you file your return. Your expected refund serves as collateral for the loans, which are typically repaid out of the money you receive from the IRS in the future.
This year, if you can’t wait the full 21 days, or if you’re worried about the IRS not meeting its deadline (a problem that affected millions of taxpayers last year) there are three commercial tax-prep services that offer refund-advance loans.
All loans are billed at 0% APR, or annual percentage rate, and there are no fees or charges.
TurboTax refund advance loans
Up to $4,000 in refund-advance loans are available from TurboTax for free until Feb. 15 or until its funding source runs out. The loans range in size from $250 all the way up to $4,000. However, the absence of fees does not imply the absence of restrictions.
However, customers who open checking accounts with Credit Karma Money can get their advance loans from TurboTax. If that’s fine with you, please continue reading to learn more about the service.
In order to qualify for TurboTax’s Refund Advance loan, borrowers must have a refund of at least $500 in their bank account.
There are ten tiers of loan amounts, and TurboTax’s Refund Advance will cover up to half of your expected refund in each one.
Using last year’s average federal refund of $2,800 as an example, you would be eligible for a $1,000 loan from TurboTax if your refund is between $2,000 and $2,999.
Usually, within one to two hours of your return being accepted by the IRS, you’ll be able to access the money in your Credit Karma Money account.
Most e-file returns are accepted within 24 to 48 hours, according to TurboTax.
You will receive a Credit Karma Visa debit card in the mail within a week or two, allowing you to withdraw the full amount of your loan.
The debit card will be the only means by which you will be able to pay back your loan.
You must file your federal tax return using TurboTax in order to be eligible for a TurboTax Refund Advance loan.
Tax preparation packages from Turbo Tax, which we previously discussed in our guide on how to file your taxes online this year, range in price from free to nearly $400 for a tax-pro-prepared return that includes personal and business income expenses.
Please select Refund Advance as your refund option on your TurboTax-prepared return in order to determine whether you’re eligible to apply for a refund advance from TurboTax.
Eligibility is based on a variety of factors, including where you live and the forms you’re submitting.
H&R Block refunds advance loans
H&R Block also promotes loans with no fees and an APR of 0%. For a limited time, the company is offering Refund Advance loans ranging from $250 to $3,500. According to H&R Block, most loans are funded the same day you apply.
Keep in mind, however, that you will only be able to use the funds if you have an H&R Block Emerald Prepaid Mastercard in your possession.
In order to qualify for the H&R Block Refund Advance loan, customers must e-file their taxes at one of the participating H&R Block locations. The amount of your anticipated federal refund also plays a role in determining your eligibility.
Jackson Hewitt refund advance loans
Using your federal refund as collateral, Jackson Hewitt, like many of its competitors, offers no-fee, 0 percent APR refund advance loans. Loans range from $500 to $3,500 and are available until February 20.
Customers who file their taxes through Jackson Hewitt are eligible for a loan called the No Fee Refund Advance. To apply, you must go to a physical location, similar to H&R Block.
Jackson Hewitt claims that those who have been approved for a loan can receive their money within minutes via a Serve American Express Prepaid Card. Several factors, including your IRS payment history, are used to determine your eligibility for a loan.