How To Apply For An Early Tax Refund In 2024: If you’re expecting a tax refund this year, you might be wondering how long it will take for the IRS or state tax agency to process your return and send you your money. The IRS generally delivers tax refunds within 21 days of receiving an electronic tax return, but certain factors can delay your refund, such as claiming certain tax credits, filing a paper return, or experiencing errors or fraud on your return.
Fortunately, there’s an option for anyone who doesn’t want to wait for their refund: an early tax refund. An early tax refund is a short-term loan that gives you access to part of your refund sooner than the IRS or your state tax agency can. In this article on how to apply for an early tax refund, we’ll explain what an early tax refund is, how to apply for one, and what are the benefits and drawbacks of getting your money early.
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What is an early tax refund?
An early tax refund, also known as a tax refund advance, is a loan that you can get from some online tax preparers or lenders based on your expected refund amount. The loan is usually loaded onto a debit card or deposited into your bank account, often on the same day you file your taxes or within 24 hours. You can typically get up to half of your refund amount in advance, depending on the lender and your eligibility.
When the IRS or your state tax agency distributes your refund, the lender will automatically repay the amount you borrowed, and the remaining money will be sent to you. For example, if you file your taxes and the tax preparer estimates your refund will be $3,000, you can apply for an early tax refund loan and get approved for $1,500. You’ll get that money within 24 hours, and later, the IRS will send your $3,000 refund to the lender, who will claim their $1,500 and send the rest to you.
Tax refund advance: How to apply for an early tax refund?
How to apply for an early tax refund: To apply for an early tax refund, you need to file your taxes with an online tax preparer or lender that offers this service. Some of the popular options are:
1. H&R Block Tax Software
You can get an early tax refund of $250 to $4,000, with no fees, no interest, and no credit score impact. You need to file your taxes online or in person with H&R Block and choose Refund Advance as your refund option. You also need to open a checking account with MetaBank, where your loan will be deposited. You can apply from early January to February 28, 2024.
2. TurboTax
You can get an early tax refund of $250 to $4,000, with no fees, no interest, and no credit score impact. You need to file your taxes online with TurboTax and choose Refund Advance as your refund option. You also need to open a checking account with Credit Karma Money, where your loan will be deposited. You can apply from early January to February 15, 2024.
3. Jackson Hewitt
You can get an early tax refund of $200 to $7,000, with no fees, no interest, and no credit score impact. You need to file your taxes online or in person with Jackson Hewitt, and choose Early Refund Advance, No Fee Refund Advance, or Go Big Refund Advance as your refund option. You also need to open a prepaid card account with American Express Serve, where your loan will be loaded. You can apply from early January to February 21, 2024.
To qualify for an early tax refund, you need to meet certain eligibility criteria, such as having a valid Social Security number, being at least 18 years old, having a federal refund of at least $500, and passing a credit check. The lender will determine how much you can get based on your income, expenses, and expected refund.
How to Speed Up Your Tax Refund with Money Transfer Apps
How to apply for an early tax refund: Getting your tax refund sooner is possible with cash transfer apps like Venmo, Cash App, and PayPal. Unlike traditional banks, these apps make your deposits available as soon as they’re received, potentially giving you your refund up to five days earlier.
How to get your refund through Venmo
- Download the Venmo app on your phone and create or sign in to your account.
- Tap the profile icon, then select Settings.
- Scroll down and tap Direct Deposit, verifying your ID if needed.
- Choose “Show account number” to access your Venmo details.
- When filing your tax return, enter your Venmo routing and account number. Your IRS-processed refund will arrive in your Venmo account up to five days early.
How to get your refund through Cash App
- Download the Cash App app and create or log in to your account.
- Tap the Building-shaped Banking tab on the bottom left.
- Select Direct Deposit, noting the potential two-day faster deposit.
- Create a free Cash Card, following on-screen prompts.
- Return to the Direct Deposit tab, copy routing, and account numbers, and use them when filing taxes for a refund up to two days sooner.
How to Get your tax refund through PayPal
- Download the PayPal app and sign in or create an account.
- Select Direct Deposit from the top menu options.
- Access routing and account information in your PayPal wallet.
- File your taxes using PayPal’s details for a refund arriving up to five days early.
By following these steps with these apps, you can potentially receive your tax refund a few days earlier than usual.
What are the benefits and drawbacks of an early tax refund?
An early tax refund can be a convenient way to get your money faster, especially if you need it urgently for paying bills, debts, or emergencies. However, there are also some drawbacks to consider before applying for one. Here are some of the pros and cons of an early tax refund:
Pros
- You can get your money in as little as 30 seconds or within 24 hours of filing your taxes, instead of waiting for weeks or months for the IRS or your state tax agency to process your refund.
- You don’t have to pay any fees, interest, or credit score impact for most early tax refund loans, as they are offered by the tax preparers or lenders as a benefit for filing your taxes with them.
- You don’t have to worry about repaying the loan, as the lender will automatically deduct it from your actual refund when it arrives.
Cons
- You can only get a portion of your refund in advance, usually up to 50%, and the rest will be sent to you later after the lender is repaid. This means you’ll have less money to spend or save when you receive your full refund.
- You might not get approved for the amount you want or need, as the lender will determine your eligibility and loan amount based on your income, expenses and expected refund. If your refund is lower than expected, you might end up owing money to the lender.
- You might encounter some delays or errors in receiving your loan or your remaining refund, as the process depends on the accuracy of your tax return, the speed of the IRS or your state tax agency, and the reliability of the lender and the bank or prepaid card provider.
FAQs: How To Apply For An Early Tax Refund
Here are some frequently asked questions about early tax refunds:
Q: How do I check the status of my early tax refund?
A: You can check the status of your early tax refund by logging into your online account with the tax preparer or lender that you applied with, or by contacting their customer service. You can also check the status of your actual refund by visiting the [IRS Where’s My Refund?] tool or your state tax agency’s website.
Q: What if I don’t receive my early tax refund or my remaining refund?
A: If you don’t receive your early tax refund or your remaining refund within the expected time frame, you should contact the tax preparer or lender that you applied with, or the bank or prepaid card provider that issued your loan or refund. They can help you track your money and resolve any issues. You should also check your tax return for any errors or discrepancies that might have caused a delay or a reduction in your refund.
Q: What if I change my mind and want to cancel my early tax refund?
A: If you change your mind and want to cancel your early tax refund, you might be able to do so within a certain time, depending on the tax preparer or lender that you applied with. However, you might have to pay a cancellation fee or fully return the loan amount. You should read the terms and conditions of your loan agreement carefully and contact the tax preparer or lender as soon as possible if you want to cancel your early tax refund.
How To Apply For An Early Tax Refund: Conclusion
An early tax refund can be a useful option for anyone who wants to get their money sooner than the IRS or their state tax agency can deliver it. However, it’s not free money, and it comes with some risks and limitations. You should weigh the benefits and drawbacks of an early tax refund before applying for one, and make sure you understand the terms and conditions of your loan agreement. You should also file your taxes accurately and timely, and check the status of your refund regularly, to avoid any delays or problems.