When it comes to filing your taxes, there’s no better feeling than getting a refund from the IRS.
But what if you could bypass the time it takes to process your return—and put that cash in your pocket even sooner?
With a tax return advance loan on your federal refund, you could get your hard-earned money back faster than ever, making it easier to pay off bills, do home repairs and buy that special item you’ve had your eye on.
Here are answers to 5 of the most frequently asked questions about income tax loans, including what they are, how they work and how to get approved for your tax advance loan today.
1. What are income tax loans?
Sometimes known as a tax refund anticipation loan, an early income tax loan is essentially an advance on your anticipated federal tax refund, providing you a pre-determined dollar amount based on what you expect to get back after filing with the IRS. Tax loans are usually available through your local tax preparer from January to the end of February.
Low-interest tax advance loans offer a great opportunity to avoid IRS refund processing times and get your tax refund quickly, ensuring your money is available and in your hands when you need it most.
2. How do tax loans work?
Income tax advance loans are made possible through a partnership between your local tax preparer and a trusted lender, such as between Liberty Tax® and Republic Bank & Trust Company, member FDIC. Taxpayers determined eligible for a tax refund loan like the Liberty Tax® Easy Advance must file their 2020 return through their local Liberty office before applying.
It generally takes 24 hours or less to get approved for your Liberty tax® refund loan. Because every loan is secured by and paid for with your federal tax refund, your loan payment (plus a small finance charge) won’t be due until you receive your 2019 refund.
3. What tax loan options are available?
Different tax loans are available based on your tax preparer and how much you expect back. When you file your taxes and apply for an Easy Advance through Liberty Tax®, you may qualify for one of seven loan amounts, including:
Of course, the option you’re eligible for depends on your anticipated return. Learn what you’re getting back and how much you may qualify for with our Tax Estimator tool.
4. How do I know if I’m eligible for a tax loan?
Each tax prep service has a different process for learning your tax loan eligibility.
To see if you’re eligible to apply for a Liberty Tax® Easy Advance loan, go to the Easy Advance page and complete our easy 4-step process:
- Choose your filing status (Single, Married Filing Jointly, Married Filing Separately, Head of Household or Qualified Widow(er)
- Fill out our personal information form (including secondary taxpayer info, if applicable)
- Add your estimated 2019 tax refund amount (provided by the Tax Estimator) and how you prefer to be contacted
- Confirm your info and submit
You will receive an answer confirming/denying loan eligibility shortly after submitting the form. You may also determine your eligibility by visiting a Liberty tax® prep pro in your local area.
Note: Eligibility to apply for an Easy Advance loan does not guarantee loan approval, which is subject to such factors as identity verification, different eligibility criteria and certain underwriting standards.
5. Can I get a loan against my tax refund in 2020?
Yes! If you’re eligible to apply and file your taxes with Liberty Tax®, you may be approved for an Easy Advance income tax loan against your tax refund in less than 24 hours*! Simply locate your local participating Liberty office, complete your taxes and apply for your loan today.
*While most Easy Advance tax loans are available in 24 hours or less, choosing the direct deposit option may add extra time for your bank to post your funds to your account.
How to maximize your refund (and possibly your tax advance loan)
Since tax loans are based on what you’re getting back (and, honestly, who doesn’t like more money?), it’s crucial to maximize your 2019 tax refund.
And the best way to do so is by using every tax break and advantage available to you and your family.
Before putting together your return, be sure to:
- Collect and organize tax-relevant documents. This includes all personal, financial and business info you may need to capitalize on tax advantages and ensure tax return accuracy (for help with this, check out our free Tax Organizer).
- Get to know popular tax deductions and credits. Commonly used tax advantages like the American Opportunity Tax Credit (AOTC), Earned Income Tax Credit (EITC) and Additional Child Tax Credit (ACTC) may help reduce tax liability and maximize your refund check.
- Gather the right forms. Having the right tax forms ready (1040s, 1099s, Schedule K-1s, etc.) is key to avoiding issues with the IRS.
- Consult your local tax prep pro. An experienced tax professional can help you identify tax breaks you’ve missed and get the money you deserve.
Avoid the wait! An early tax refund loan puts money in your hands now, allowing you to catch up on bills, make that down payment or take that next vacation sooner than ever! Click here to learn if you’re eligible to apply for a Liberty Tax® Easy Advance today.