Can I Get an Advance on Some of My Tax Refund Check?
If you frequently receive a tax refund check, you may be able to get it a little early this year, but this service might cost you more than just about any other loan on the market. Your best option usually is to wait for your refund. The IRS uses an electronic refund system, so you can receive your refund within days if you file your taxes electronically.
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Identification
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You can receive an advance on some of your tax refund check through a refund anticipation loan. However, these loans charge a fee between $50 and $100. The fee can make the effective rate on a refund advance loan 250 percent or more, according to MSNBC. Government regulations passed in 2011 make it more difficult for companies to offer tax anticipation loans, so few tax preparation companies offer them.
Requirements
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Most tax preparation companies that offer tax refund anticipation loans limit them to $1,500 and require a credit check. Also, you usually have to use the tax preparation company to prepare and file your tax return so that the company knows that it will receive repayment on your tax refund loan.
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Alternative
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If you want your tax refund sooner so that you can buy a fancy new appliance or gadget, consider asking the store for financing. Many stores offer to finance a purchase for free for a few weeks. At the very least, store financing usually works out to a lower annual percent yield than a refund anticipation loan, according to Kay Bell of Bankrate.com.
Expediting Refund
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Use electronic filing for your return. If you request your refund by paper check, E-Filing can cut the time it takes to get your refund from eight weeks to four weeks. Electronic filing in generally is a better choice than paper returns. For instance, the error rate on E-File returns is less than 1 percent, according to Bell. Direct depositing your return speeds up the refund process even faster. If you E-File and use direct deposit, your refund should reach your bank account within 14 days or sooner.
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