Learn what advanced Tax TurboTax refund is, its eligibility criteria, and how to claim a refund in TurboTax for financial requirements.
Among the widely used tax preparation software programs, TurboTax allows you to file your taxes from the comfort of your home. Whether through a TurboTax website or purchasing the required version of TurboTax, you can effortlessly file your federal or state taxes according to the American tax systems. For a majority of Americans, filing their income taxes means getting a refund. According to the IRS, an average tax refund of $2,535 was disbursed till November 2020. The refund is often an addition to the retirement savings of many individuals.
Moreover, you get an excellent opportunity to invest this refund amount by consulting with a financial advisor. However, if you need this refund in advance, you need to opt for a tax refund loan. Read on to explore more on this and learn how to opt for an advance refund in TurboTax.
What is Advance Tax Refund in TurboTax?
The advance refund in TurboTax is just like other short-term loans available out there. However, the loan amount is based on your total federal tax refund amount. Like other tax filing services, TurboTax also offers you a tax refund loan once you file your taxes with them.
The amount of advance refund has the value of your anticipated refund amount, subtracting any interest charges or fees. The mode of advance refund or the loan could be a prepaid card, a check, or an electronic deposit in your bank account. You should remember that if the refund amount is lesser than your tax refund loan, you still need to pay the loan back in full.
With TurboTax’s advance refund in place, taxpayers who will file their taxes before February 8, 2021, will have a minimum expected Federal refund of $500. Your tax filing is accepted until late January. Once the IRS receives an advance refund request, they will issue a refund within 21 days.
Tips To Qualify For Advance Tax Refund
Tax refund loans don’t include similar risks as unsecured loans from banks. Hence, the credit score requirements are not strict when it comes to a tax refund. However, your qualification for an advance tax refund depends on the amount of money the IRS will refund you.
They will verify your identification, analyze your tax history with themselves, and check the amount of debt you owe. Instances occur when the IRS may review your credit history, and if you want to qualify for the advance tax refund, you are required to provide your SSN, contact details, and the amount of refund that you received for the previous tax year.
How To Get An Advance Tax Refund?
If you don’t have sufficient money; however, you can use the money from your tax refund, then an advance tax refund is an ideal option. It is an excellent way to meet your immediate financial needs without any high-interest rates. Getting an advance refund requires you to perform the following actions.
Start with gathering all your income tax documents. It is recommended that you collect all the documents required for the advance refund process. If you don’t know how to open .tax file without TurboTax, select the “Open Tax Return” option from the File menu, locate your “.tax” file, select it, and then click on Open. Once you can open the .tax file, ensure that you have any of the below-listed documents for requesting an advance refund:
- W2: If you fall under the regular day job category, you must have a W2 that includes your wage and information on the salary.
- 1099s: You will have a 1099 and W2 if you work as an independent contractor.
- Schedule C: The Schedule C form helps you in reporting the income and losses of your business.
- 1098: You need to report form 1098 if you own a home and if the mortgage interest is paid for the year.
- Quarterly Tax record: You need to include the Quarterly tax record if you’ve paid the quarterly taxes for the year.
- Personal Details: Completing your tax filing process requires you to submit a few of your personal details, such as the social security number (SSN) and your bank account details.
Once you ensure the availability of the required forms and you are all set to receive a tax refund advance through TurboTax, file your taxes using the online version of the software that you have purchased. Next, wait for the IRS acceptance of your tax return. If the IRS accepts your request, you will receive the refund in two business days. You can see the refund amount on your TurboTax Visa Debit Card. While you can use the refunded amount for meeting your financial needs, you need to wait for about 10 business days for the physical Turbo Visa Debit Card to be delivered to your doorstep.
Now, here’s the step-by-step guide to avail a TurboTax refund advance:
- Before you file your taxes, select the “Refund Advance” as your refund option.
- If the request is approved, you can use your virtual card to start spending online. The refund amount of TurboTax is available in the amounts of $250, $500, $750, $1000, $1500, $2000, $2500, and $3000.
- After the IRS processes the advance refund, the balance refund amount will be credited to your physical Turbo Visa Debit card within 21 days.
If you encounter any issues while opening a TurboTax tax2pdf file, try reinstalling the software on your system and open the file. In case the issue persists, remove cookies and cache files from your web browser. These files are often accumulated in huge quantities and restrict the usual performance of your computer system.
So, these are some of the useful insights into advance TurboTax refund. Instead of approaching any traditional method of getting loans, file your taxes before the due date and follow the series of steps involved in claiming advance tax from TurboTax and wait for the IRS to approve your request. This will certainly save you a lot on interest and service charges, which otherwise you’d have paid to banks or finance companies. Hope you love reading “Advanced Tax Refund in TurboTax”
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