Tax Refund 2023: You Could Get An Advance

Tax Refund
Tax Refund

When W-2s arrive in the mail and refund checks start to smell, it is tax season. You might be thinking, “Can I get a loan against my tax refund?” if you need your rebate check in a hurry or do not want to wait for the IRS to file your return. You could be eligible for an advance loan on your tax refund.

If you meet the requirements, you might be eligible to borrow all or part of your return to pay for a large-ticket item like a car. You can choose whether or not these loans are the best option for you by knowing how they operate.

A short-term loan known as a tax return advance loan is given out by banks and non-bank lenders. The expected tax refund of the borrower serves as collateral for these loans. As a result, the loan amount is limited to the return amount. 

Advance Tax Refund Available

When you apply for a tax return advance loan, the lender agrees to lend you all or a portion of your tax refund. The lender wants you to submit your taxes using their tax preparation software or services to guarantee the form is completed correctly because the loan is secured by the tax return. This enables the lender to check the size of your refund and guarantee that the IRS will accept it.

Depending on the lender’s standards, most taxpayers who anticipate receiving a tax return can be approved for a refund advance loan regardless of their credit score.

For instance, Intuit TurboTax’s Refund Advance program is only available to taxpayers that are at least 18 years old, have a Social Security number, document using specific forms, and anticipate receiving a refund of at least $500; it is not available to those who use a post office box or a prison address.