Contributed by: WrenD, FreeTaxUSA Agent, Tax Pro
When it comes to accessing your tax refund quickly, many taxpayers wonder, "Does FreeTaxUSA offer refund advance loans?" The answer is no, FreeTaxUSA does not offer refund advance loans, also called a refund anticipation loan or RAL. However, we do offer an alternative that can be just as efficient: the Green Dot Prepaid Visa® card. While refund advances come with their own set of drawbacks, such as potential fees and the risk of repayment delays, our Green Dot card offers a seamless and convenient way to access your refund without these complications.
What is a refund advance?A refund advance on a federal tax return is essentially a loan given before you receive your tax refund. While it might seem appealing to get money quickly, it comes with several significant drawbacks. After you file your taxes, instead of waiting for the IRS to process and send your refund, you borrow money based on the anticipated refund amount. This loan is typically provided by a lender within a few days.
Cons:
- If your refund is delayed, you could face the stress of repaying the advance sooner than expected.
- There are often hidden fees or charges, especially if you do not use the lender's tax preparation services.
- You might receive only a part of your expected refund, not the full amount, which can be disappointing.
Pros:
- You get your money faster, which may be helpful if you urgently need funds.
- There are usually no interest fees if you repay it with your refund.
What is a Green Dot card?You can opt for our Green Dot Prepaid Visa® card to receive your IRS refund. Rather than waiting for a mailed check or using a bank deposit, the refund is directly loaded onto your Green Dot card. This method is as speedy as a direct bank deposit and much faster than getting a check in the mail. It’s a convenient choice if you don’t have a bank account or prefer not to use it to receive your refund.
In conclusion, choosing the right option for accessing your tax refund is crucial. While we do not offer refund advances, the Green Dot Prepaid Visa® card is still a convenient and efficient choice for many. Evaluate your financial needs and preferences carefully to make the best decision for your situation.
