Instant Tax Refund: Pros and Cons.Is an Instant Tax Refund worth it? Find out our opinion.
We have had this question many times. Where can I get an “Instant Tax Refund?” or Is an Instant Tax Refund worth it? Here is our pros and cons.
To answer this question, first we must explain exactly what an Instant Tax Refund is.
An Instant Tax Refund is basically a loan from your tax preparation company. It typically comes with a rather large fee usually percentage based.
Instant Tax Refund Pros:
Instant Money. You get money back usually the day you file or within a few days of filing.
Instant Tax Loan Cons:
Large fees. We have had reports totally 25% of your tax refund. So if you had a refund coming of 4000, the tax prep company would take 1000. Think about how insane that truly is.
Is it worth it? Heck no! Unless your situation is the most extreme, then this type of short-term loan is the absolute last method of funding you should seek. There are many better ways to get money quick then using your tax refund as an asset.
Just say no.
Who offers Instant Tax Refunds? H&R Block, Jackson Hewitt, Liberty Tax, many other local providers. We would suggest contacting your local tax services in your area and asking.
More questions? Check out our Income Tax Forums.
If you’re planning to hire a tax preparer, make sure you:
Review their qualifications, fees and charges — and avoid anyone who claims to base their charges on the amount of tax you owe or the refund you expect.
Ask whether they’ll represent you at a government audit.
Have the preparer sign your tax return. Obtain a copy of your return and a receipt for the preparer’s fees.
Never sign a tax return that is blank, incomplete or filled out in pencil.