Get Your Tax Refund in Advance!
Taxes: a word everyone dreads. Refund: a word everyone likes. What if you can get your tax refund in advance? That sounds even better!
Refund anticipation loans (RALs) are high-interest, short-term loans secured by a taxpayer’s expected tax refund. It is an advanced payment on what you anticipate to be refunded by your taxes. However, since the RAL is a loan, it comes with a service charge which can usually be deducted from your refund beforehand.
Tax refund anticipation loans can be acquired through most tax preparation firms.
Once you apply for a RAL, your advanced refund may be available in as little as 1-2 business days. Receiving your tax refund in advance provides you with more financial flexibility, especially when unexpected expenses arise, such as medical visits, car payments and other unexpected bills.
If you are planning on using the advanced refund for cancelling debt, then a RAL might be a good option. If, however, you’re planning on using this money for something less significant, you should wait for your refund.