Contributed by: WrenD, FreeTaxUSA Agent, Tax Pro
When it comes to getting your tax refund quickly, many taxpayers wonder, "Does FreeTaxUSA offer refund advance loans?" The answer is no. FreeTaxUSA does not currently offer refund advance loans, also called a refund anticipation loan (RAL). However, we do offer an alternative that can help you get your refund up to 5 days early: the GO2bank® Visa® debit card. A GO2bank account offers a convenient way to access your refund without applying for a loan.
What is a refund advance?
A refund advance on a federal tax return is essentially a short-term loan given before you receive your tax refund. Instead of waiting for the IRS to process and send your refund, you borrow money based on your expected refund amount. This loan is typically provided by a lender within a few days. If you cannot wait a few more days for your refund, it might be a good option to consider. Look at both the benefits and the trade-offs before deciding if it's right for you.
Pros:
- You could get your money a few days faster, often within a day or two of filing. This could help if you have an urgent expense and can't wait for the IRS's normal refund timeline.
Things to watch for:
- If your refund ends up delayed or lower than expected, you may still be responsible for repaying the advance, so it helps to have a plan for that possibility.
- Some lenders charge fees or interest if you don't use their tax preparation service, so it's worth reading the terms closely.
- Offers of “0% advance” usually require filing through that lender. Depending on your situation, e-filing the return yourself may cost less and put more of your refund in your own pocket.
What is a GO2bank® Visa® debit card?
You can opt for a GO2bank card to receive your IRS refund. Rather than waiting for a mailed check or using a bank deposit, the refund is directly loaded into your GO2bank account. This method can get your refund up to 5 days early. It’s a convenient choice if you don’t have a bank account or prefer not to use your bank account to receive your refund.
If you already have a GO2bank account, choose direct deposit instead of the new debit card option in our software. Enter the routing and account number for your existing GO2bank account, and your refund will be deposited directly to that account.
So, what's the takeaway? Refund advances make sense for some people, while others may prefer getting their refund a few days early without applying for a loan. While we don't currently offer refund advances, the GO2bank® Visa® debit card is one choice worth considering if getting your refund a few days early matters to you. Weigh your options and pick what fits your situation best.