The process of filing your taxes and waiting for your refund from the IRS can be very stressful. This past year has been very unconventional, with the national shutting down from the pandemic, people losing their jobs, and many changes happening worldwide. If you can’t wait any longer for your tax refund and you need cash now, there are a few options you may consider.
When Can I Expect to Get My Tax Return & Important Deadlines?
The IRS has pushed back the start of 2020 tax filing to February 12, 2021. If you file electronically and your refund is issued via direct deposit, you will likely receive your refund within three weeks. If you file via paper return, you can expect your refund within 42 days. Apart from these timelines, here are some important deadlines you should keep in mind:
- December 31, 2020: Deadline to maximize your 401k contributions
- January 31, 2021: W-2’s and 1099-Misc forms get sent out
- February 12, 2021: The agency will begin accepting returns
- April 15, 2021: Tax Year 2020 deadline and last day to make 2020 IRA contributions
How Can I File My Taxes?
There are two common ways to file your taxes. You can file online using tax software or choose to use an actual tax preparer from a company.
Online: Filing taxes online is becoming more popular every year due to the convenience of the process. There are many software providers available online. Some software providers will provide on-demand access to their employees, who can answer any questions. Once you select the tax software provider you would like to file through, the process is very straightforward and can be explained by the provider. For those concerned about costs, the IRS Free File program offers free online tax preparation software from different tax-prep companies, which will be made available to those who qualify.
Tax Preparer: Many individuals choose to hire someone to prepare their taxes to ensure they are done right. When searching for a tax preparer, determine their level of experience and specialization to ensure they are suitable for your needs. There are two most popular credentials for tax preparers; certified public accountant (CPA) and enrolled agent (EA). The price of a tax preparer is also important to look at. Many different individuals and companies offer different levels of pricing. There are places out there that offer free tax preparation services to individuals who qualify. Most of these places will be through a local non-profit group.
What Is An Early Refund Advance Loan?
A tax refund advance is money you can receive from your income tax before your tax refund is processed. The money you receive is typically only a portion of your refund amount rather than the full amount. In simpler terms, you are borrowing your own money. These early refund advance loans range from $200 to $4,000. If you file for a tax refund advance, you can potentially get your money the same day you submit your application.
Should I Get a Tax Refund Advance?
You should ask yourself two basic questions: “Am I expecting to get money back this tax season?” and “Do I need funds now?” If you answered yes to both questions, then a tax refund advance might be a good option for you. If you do not expect to get a tax refund this year, you shouldn’t apply for a tax refund advance.
Do I Need Good Credit to Qualify?
To qualify for a refund advance loan, you do not need a good credit score. Individuals who have no credit will still be able to qualify and be approved for one. The criteria used to determine if you qualify for an advance and are approved is based highly on the size of your tax refund.
How Do I Get a Tax Refund Advance?
If you would like to get a tax refund advance loan, the first thing you should do is gather all of the documents that you will need to file your taxes. Some of the essential documents you will need include your W-2, 1099’s, Schedule C, 1098, and your Quarterly tax record. You will then need to file for taxes, which you can do alone, through software, or with a tax professional.
Before preparing your own taxes, it is very important to familiarize yourself with certain tax companies’ requirements. Some companies will require you to have your taxes prepared with them in order to apply for a tax refund advance. With this in mind, it’s in your best interest to seek out a company that you would like to use and then get information regarding their policy, requirements, compile all necessary documents for filing your taxes, and applying for a refund advance loan. A few good tax professionals that provide this service include TurboTax, Jackson Hewitt, and H&R Block. If you want to use any of these three companies, you will need to file your taxes with them as well. Once you submit all of the required forms, you can receive your funds as soon as the same day your forms are accepted.
Where Can I Get a Tax Refund Advance Loan?
Many different places offer tax refund advance loans. TurboTax, Jackson Hewitt, and H&R Block are among the most popular. Each of these companies has its own set of requirements and their services differ from one another. Some of these requirements include having to file your taxes with their company. If you would rather file your taxes elsewhere, or you believe you would not be approved for a refund advance loan, there are other alternatives available.
Alternatives to Refund Advance Loans:
Online loans: You can find small online lenders who offer personal loans starting at $1,000. Some lenders will offer same day or next day funding. Consumers who have a great or excellent credit score, high income, and little to no debt will qualify for the lowest rates.
0% APR Credits: Consumers who have great credit or excellent credit, 690 or higher FICO score, may be able to qualify for a credit card with a 0% promotion interest period. This means you will not have to pay any interest as long as your balance is paid in full during the given promotional period.
Small Loans and Fast Funding: If you believe your refund will not be large enough and you need more funds, some online lenders offer fast funding. An installment loan is a form of borrowing that is paid back over a period of time with scheduled payment dates. An installment loan application only takes minutes, and you can get your funds as quickly as the same day. In addition to quick and easy funding making payments on the scheduled pay dates over a couple of weeks can help borrowers build their credit history.
Loan at Last Can Help!
At Loan at Last, we offer installment loans with a quick application process and same day funding if approved early enough in the day. We lend to people with all types of credit backgrounds and are committed to giving our customers transparent loan terms and a payback schedule that accommodates their budget. Paying back these loans can help you build your credit if you make your payments on time. To get started, fill out our online loan application here or give our customer care team a call at (844) 676-8550 Monday-Friday 7AM-7PM CST and Saturday 8AM-4:30PM CST, or send a message to firstname.lastname@example.org.