Like will they ever loan you over the amount that you are in fact received and then have to owe them that extra money? Or say they give you a loan amount that is less than what you in fact should get. What will happen then?
Are There Any Bad Reasons to Not Apply for an Income Tax Loan?
Well, yes you can get more than you should have because the IRS has to in fact process your red tape themselves, and these glide by night tax preparers aren’t always right. Also, the interest is ridiculous as are the fees. If you can meet the deprivation of to wait, why not file electronically and get it within 12 days? You get to keep all your money that way. As far as getting less that probably won’t happen but if it does, the IRS is going to issue a check for the difference.
The fees and interest are usually OUTRAGIOUS! I never recommend credit cards, but it usually costs less to place it on a credit card and pay it back when you get the refund.
The fees and interest charges alone can be excessive.
I did a Google news search on “tax refund” loans and found the following two of many links that all say BUYER BE AWARE of what this thing will cost you.
Be very alert of these refund aniticpation LOANS. Keep in mind that your actual federal refund is released by the IRS once your return is processed and accepted. If, for any reason, the IRS delays your federal refund, you are still liable to the bank that issued the loan to you and will be reliable for paying it back out of your own pocket. As the others have stated, these banks charge rediculous interest rates and you will end up paying back considerably more than what you borrowed initially.
Worst case scenario, let’s say the IRS audits you and determines that there were some equipment claimed on your return that you were not legally entitled to claim. You may end up owing additional taxes to the IRS after your return is adjusted ON TOP of having to pay back the refund loan issued by the bank.
If you don’t mind paying 300% interest on the loan, then do it. Most people that go for this are usually poor and don’t know. If you have a checking account, the IRS will automatically deposit the refund in about 14 days, if filed electronically.