What You Should Know About Tax Refund Advances
It can be tempting to ask for tax refund advances. However, it is not necessarily the best approach. There are some important reasons to avoid tax refund advances, and simply wait to receive your refund.
First, tax refund advances cost money. When you receive a refund from the IRS, you will receive the full amount you deserve. This is not the case with advance loans. The amount you receive will be less, because you will pay a fee to receive your money.
Second, it is possible to miscalculate an income tax refund. If this occurs, you can lose money.
Third, while advances can be used for important purposes, often they are not. Many people feel that having cash in their hand is reason enough to spend it frivolously. You may be more tempted to waste your advance than if you receive a check from the IRS, or a direct deposit into your bank account.
These are all good reasons to wait for your tax refund. If you have financial difficulties, it is much better to save your income whenever possible so you can deal with your finances without advance loans.
You can be taken advantage of if you look at tax refund advances as a source of fast, easy cash. A better approach is to be patient, and wait for the IRS to send your refund to you.
It does not take long for the IRS to process tax returns. A little patience will mean receiving the entire amount you are entitled to, and not paying any fees to receive your own money.