Income Tax Refund Advance Loans: January 2018

Tuesday, January 30, 2018

Americans Getting More in Tax Refunds

About 75% of people who submitted their tax returns for 2010 are expecting to get a tax refund. The statistics of the percentage is no different from previous years. However, the average amount of tax refunds that the taxpayer gets has been growing steadily over the years. This has grown from the average in 1999 of $1,698.00 to that in 2009 of $3,003.00. This means that the IRS refunds have grown about 100% in only 10 years. There are several explanations for this growth in refund averages, which are listed below:

Changing Perceptions on Refunds

In the past, the idea of overpaying your taxes and waiting for a tax refund was seen as a bad deal, as it meant that you had basically advanced Uncle Sam with an interest-free loan. People worked to match their withholdings to ensure that they got the least possible tax refund. In fact, a survey carried out on the perception of tax refunds on taxpayers revealed that the older taxpayers, aged 50 years and above, still hold this notion and will always work to adjust their withholding to match actual taxes. However, the younger taxpayers seem to have a different attitude towards their tax refunds. Many of them will intentionally overpay their taxes so as to have a larger tax refund. The refund comes more like a bonus and the funds can be used for a specific thing such as set up an emergency fund, make an asset down-payment, or simply saved up for a vacation. Many young tax payers feel that the burdens of bills are high and saving up within the year turns out to be hard work. However, the IRS does the job in piling the overpayment of withholdings and refunding this in one paycheck, which can feel like a lump bonus to the taxpayer. The receiving of a healthy paycheck from the IRS seems preferable over receiving small funds distributed throughout a given tax year. This new trend of viewing tax refunds may have contributed to the increase in amount of tax refunds made.

Poorer Performing Markets

The stock exchange market and interest rates on various investments have performed dismally between 1999 and 2009. In fact, the stock market dipped in 3 of these 10 years and stagnated for the most part of the remaining years. These reduced returns on investments has worked to defer taxpayers from seeking to manage their tax withholdings better since there is nothing much you lose in terms of investment returns by waiting for a tax refund. Therefore, less people are keen to make withholding adjustments.

Job and Investment Losses

During the same period of 1999 to 2009, there have been more people who have lost returns on investments and lost jobs, especially in the 2001 and 2007 economic recessions. Therefore, the growth in refund averages may reflect the deductions on losses, unemployment benefits, and adjustments on reduced incomes.

New Tax Breaks

During the same period, there have been many tax breaks that have been introduced, such as the Bush tax cuts, among other tax credits (some of which were created in efforts to revamp the economy). These breaks include the home-buyer credits, American Opportunity Education credit, and larger child credits. Many people choose to apply these new tax credits in their returns, which leads to higher refund checks.

Cost of Withholding Adjustments

Another reason that could explain the raise in tax refunds is the complex process of calculating and making withholding tax adjustments. You will need to work with 3 worksheets and 2 tax tables on the W-4 to make the correct adjustments on your withholdings. You will then need to forward your W-4 to your employer so as to have them update the changes. Many people find this process a challenge and would rather do nothing about their tax withholdings. However, on the flip side, most tax preparers provide free help in preparing the W-4 to make tax withholding adjustments. You can therefore request the assistance of your tax preparer with your W-4.

Robert L. Daniel and partners of Limon Whitaker & Morgan, for years have helped businesses and individuals Nationwide, with their delinquent IRS & State tax problems. The firm is based in Los Angeles, California USA. [http://www.limonwhitaker.com] / Tel:888.321.6188

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Sunday, January 28, 2018

How To Estimate Your Irs Tax Refund In Advance, For Free

Wouldn't it be nice to know how much your income tax refund check will be. It's like having money in the bank. Yes, there is a simple way to estimate your tax refund in advance and it won't cost you a dime.

I'm about to show you how you can estimate your Federal IRS income tax refund or return in advance, for free!

How to estimate your income tax refund

Forget about using pen, paper and a calculator, we're going to estimate your taxes with the help of the Internet. Using an online tax refund estimator, we can get this done in about 10-15 minutes. The tax refund estimator will need to gather information about you, to make an estimate. All you have to do is make simple entries.

Here is how and what you'll be asked:

Screen 1. Your filing status, age, your children and other dependents.

Screen 2. Earnings, gross wages and self employment income.

Screen 3. Any investment income such as interest, dividends and capital gains.

Screen 4. Any other income such as rental, royalty , partnerships, trusts, tax refunds, alimony, unemployment, social security and any other income.

Screen 5. Ira and education expenses such as Ira contributions, student loan interest, college tuition and expenses.

Screen 6. Expenses, business and work related, self employed health insurance, moving, Keogh and other.

Screen 7. Deductions and personal expenses such as medical, real estate, mortgage interest, home equity loan, charitable contributions, alimony you paid, child care, gambling losses, theft and other.

Screen 8. Miscellaneous tax items. These tax items apply to relatively few people. AMT and other misc.

Screen 9. Withholding, Federal income tax withheld, State income tax withheld and future withholding if before end of tax year.

Screen 10. Tax payments you have made or will make for this year.

And now what you've been waiting for.

The Results! That's it, you'll know how much your tax refund will be, so you can make important financial decisions.

You can go to Turbo Tax Online right now, and estimate your tax refund just like I showed you. Try the Turbotax Online Tax Refund Estimator today and see how large your tax refund will be. When you prepare and file taxes online, you get all the tools you need for a fast, easy and bigger than ever tax refund. http://www.harborfinancialonline.com

Article Source: http://EzineArticles.com/405025

Monday, January 22, 2018

Avoid Pay Stub and Tax Refund Loans

What could be better than getting an advance on your tax refund from the good ole IRS? Well, you better give some thought to the fees you are paying for that advance.
America is a capitalist country and home to many creative people. You can even find them in the field of tax preparation, a bland area if ever there was. The interesting service in this case refers to loans being made by tax preparers in concert with banks to taxpayers. There is nothing inherently wrong or illegal with such loans, but it is a case of buyer beware. The fees can be atrocious.

The loans at the heart of this article are called a couple of different things. The most direct name is a tax refund loan. A less direct name is a "pay stub" loan, in reference to the use of paycheck stub information to figure out how much money to loan you. While these loans are fine and dandy, they can come with some atrocious fees.
Short term loans are inherently expensive. Why? The financing party doesn't have a lot of time to watch interest accumulate and collect it as would be the case for a home mortgage. Instead, they need to find a way to make money on the loan quickly. They do it with fees. In the pay stub loan business, the fees often equate to 10 percent or more of the loan. That is a pretty high percentage for loaning you money for a couple of months.
Before I go any farther, it is important to understand there is nothing wrong with lenders doing this. They have every right to make money and every right to charge you fees. The burden is on you to determine whether you really need that money now. If you do, then why don't you go ahead and file your taxes early? I know that is a shocking idea, but there is nothing prohibiting you from doing so. The IRS will now wire you the refund, so you shouldn't have to wait to long for your mulla.
At the end of the day, it is your decision as to whether you want to take a loan against your taxes. Some will and some will not. Whatever your decision, just make sure you go in with your eyes open to the fees.
Richard A. Chapo is with BusinessTaxRecovery.com - providing information on taxes.

Sunday, January 21, 2018

The Pros and Cons of Refund Anticipation Loans

There has been a dramatic rise in the popularity of refund anticipation loans at tax time. These loans can be a good or bad idea depending on your situation and why you feel you might need one. Let's take a look at the pros and cons of getting such a loan.
PROS
If you are having a cash flow problem and need money immediately, a refund anticipation loan could fill that gap for you. Sometimes you can get a cash advance on a paycheck to fit the same need, but perhaps you need a larger some of money fast and such loan could do that for you.
Refund anticipation loans are processed much more quickly than a conventional loan. A refund anticipation loan can be approved in about 24 hours and the funds dispersed within approximately 48 hours in comparison to conventional loans, which can take weeks from application to disbursement.
If you get a loan against your refund, the tax professional providing the loan generally takes their fees from your refund. Therefore, you avoid upfront payments for the preparation of your income tax return.
CONS
The interest and fees attached to such a loan are generally very high. This is because a third party lender is usually involved. Although people who have prepared your taxes offer these refund anticipation loans, the loan itself usually comes from a bank or lender outside of the tax professional's operation.
You are ultimately responsible for the full total of the loan. If, for some reason, the lender does not receive the full amount of the loan from the IRS refund, you must pay the difference out of pocket.
Many people take advantage of refund anticipation loans simply because they are an available means to get cash right away. If you are not in urgent need of this money for some pressing obligation, it is always better to just wait for your Internal Revenue Service refund.

As mentioned before, such loans generally charge a very high interest rate. There are almost always fees added in addition to the high interest of a refund anticipation loan. The combination of these two factors makes this sort of loan ill advised unless you are experiencing pressing financial difficulties that make immediate relief necessary. If you can hold off these obligations until the time you receive your Internal Revenue Service refund, it would be better all around for you to just wait.
While filing your income tax return, your consultant is likely to sure you a fat figure as your refund from IRS! At the same time he presents you a proposal - take a loan against it and you can start spending that right away. Well, looks lucrative at the spur of the moment but is it worthwhile? Chintamani Abhyankar explains.
Chintamani Abhyankar, is a well known expert in the field of finance and taxation for last 25 years. He has written many books explaining inside secrets of the magic world of personal finance. His famous eBook Stop donating your money to IRS [http://www.planningyourtax.com] which is now running in its second edition, provides intricate knowledge and valuable tips on personal finance and income tax.

Wednesday, January 17, 2018

What to Do With Your Income Tax Rebate When You Don't Have a Bank Account

Unbelievable as it may seem, there are many Americans with no bank account affording direct deposit of their income tax rebate. In fact, it is estimated that as many as 12 million American households are without a bank account. In this article we will discuss various Internal Revenue Service options for receiving your income tax rebate. Some of these are certainly applicable to those taxpayers with no bank account.
The first option, however, is strictly for taxpayers with bank accounts. It is, by far, the most chosen method among taxpayers for receiving their income tax rebates. It is direct deposit. This is the fastest way to get your money. An electronic refund, featuring direct deposit, generally happens within eight to fifteen days. A mailed in rebate can take as long as five to seven weeks to show up.
You can still get your refund via a good old-fashioned paper check. There are two ways to get your check. You can file your income tax return electronically and still request a paper check, in which case it should come in the mail in about three weeks. Your other option is to file by mail and request a paper check. You will wait approximately six to eight weeks with this process.

Now, if you don't have a bank account, many tax preparation services offer you the option of a check card. This is not an option from the Internal Revenue Service. This is an option offered by tax preparation services in return for charging you to file your income tax return. These cards are generally issued as part of the tax preparation service's refund package. As a part of this package, you generally agree to pay them for filing your income taxes, and then you pay fees and interest associated to a refund anticipation loan. The amount of the loan is then loaded onto a prepaid check card. You can use the card anywhere credit cards are accepted. Many times the money will be placed on your card within twenty-four hours.
Remember, however, that this is a very expensive way to get your income tax refund. First, the tax preparation services will charge you for preparing your income tax return. Then, they will charge you for an electronic filing of your return. Next, they will add fees and interest that will be deducted from your refund before issuing a card with whatever is left to you. That's a lot of bites out of your income tax refund.
It may be better to consider filing by mail and receiving a paper check. There are plenty of check-cashing operations that will gladly cash a tax refund check for a small percentage charge. This check cashing fee is generally slight in comparison to all the money the tax preparation service is going to take from you in preparation fees, filing fees, loan fees, and interest.
If you have a trusted friend or family member with a bank account, they might allow you to have the IRS direct deposit your money with them, and then withdraw it for you when it clears. Be careful whom you ask to do this, because the money is technically and legally theirs should they decide not to give it to you once it is deposited.
The process of getting the refund is very easy when you have your bank account. But when you don't have one, problems start coming up. No need to worry, there are options available. Take the best and least expensive one Chintamani Abhyankar explains.
Chintamani Abhyankar, is a well known expert in the field of finance and taxation for last 25 years. He has written many books explaining inside secrets of the magic world of personal finance. His famous Tax eBook http://www.planningyourtax.com "Stop donating your money to IRS" which is now running in its second edition, provides intricate knowledge and valuable tips on personal finance and income tax.

Monday, January 15, 2018

Income Tax Refund Advance

This tax season, many taxpayers will accept an income tax refund advance. Most of these individuals will not fully understand the exact nature of this refund anticipation loan.

The process is easy; the individual completes and submits their federal and perhaps state tax returns. They then receive a loan from a lender who could be connected with the tax preparation or could be independent. The loan repayment comes out of their refund, which goes to the lender. Unfortunately, many of these taxpayers do not understand the risks they are taking when they accept one of these loans against their refund.

Most income tax refund advance loans are provided by the companies who also prepare the returns, including H&R Block, Jackson Hewitt and Liberty. They have small or temporary offices set up in low income areas filled with working class people who do not understand that what they receive is a loan, not their actual refund.

The risk lies in the possibility that the refund may not come through as hoped from the Internal Revenue Service. The borrower is obligated to repay this loan regardless of what happens when IRS receives and reviews the paperwork. The lender is also going to charge the borrower with interest and fees for the loan whether or not IRS accept it.

The tax filer needs to understand that the tax preparers do not have the final say on the validity of the return. The preparer only fills out the forms and submits them on behalf of the filer. Only IRS has the authority to determine the filing is acceptable and then process it.

The approval by IRS happens after an agency official reviews the return and determines that it is accurate, complete and includes required documentation. The review process takes several days to several weeks depending on whether the return was filed electronically or by mail.

Lenders have no problem with this risk because the odds of getting their loaned money back are excellent. The Internal Revenue Service approves virtually all returns within a week of their submission. Even if a few returns end up being rejected, the amount of income earned on the huge majority that do pass IRS inspection justifies the relatively few losses on return rejections.

If the IRS decides that the return is inaccurate, incomplete or IRS objects to some deductions, the refund could be delayed, reduced or eliminated. IRS may refuse to pay the refund as requested and then the borrower must struggle to repay the income tax refund advance out of their own funds. If they are unable to fulfill the loan conditions, their credit rating, future credit worthiness and credit interest rates could suffer. Some tax services are able to protect their own interests by recovering anticipation loans that were not repaid from tax refunds in future years.

The wisest course for most taxpayers is to avoid the process unless they are in truly desperate need of immediate funds. This eliminates all concern over being able to repay the loan or getting the refund in time to avoid any extra interest or late charges.

The emergency needs to be very immediate, because IRS processes refunds quickly. Those who file electronically and have their refund direct deposited frequently get the refund within a week at no charge from IRS or the bank. Even refunds submitted by mail usually get processed within a month if submitted early in the tax season.

Most important to the tax filer is the knowledge that they are getting every penny of their hard earned money. None of the refund is going to the preparer on top of their charges for preparing the return. The money that was going toward loan interest and fees is instead going into the taxpayer's pocket. There is really no point in an anticipation loan for most individuals.

Sunday, January 14, 2018

Tax Advance Loans

Critics for years have attacked loans for being unscrupulous and predatory. But these loans also work as prepayment for tax refunds.
Adam Rust is a director of research for the Community Reinvestment Association in North Carolina. The Association is a nonprofit of Durham that fights for minorities of and low-income groups. Rust says that the fees on the refund anticipation loans could about $50 to $200.
According to the Community Reinvestment Association, 470,000 residents of North Carolina pursue refund anticipation loans each year. Fifty-million dollars is paid for these services.
Some critics are stating that some people are assuming that they are getting their refunds quicker, but they do not realize that they are in fact paying more to get their refund only a couple weeks earlier than normal.
The IRS allows banks to use a financial instrument called a debt indicator, which many people allows the IRS to act as enablers of these types of loans. This tool would let banks know if the individual who was filing their tax return be getting the whole return, or if part of it was being taken out by child support, defaulted student loans, back taxes, or any other unpaid debts.
On Thursday, the IRS said that this particular financial tool would not be needed anymore as refunds can be done fast online.
However, without these debt indicators, banks will not know if they will recover their loan or not. Because of this, banks might be handling a great risk in giving out tax advance loans. A small amount of banks only are giving out these loans in the country.
Tax preparation offices normally process tax refunds. This move by the IRS was slammed by tax preparation offices because they believe the use of debt indicators will not stop these loans, but the lending risk will increase and make banks increase the fees for giving tax advance loans.
The tax preparation company H&R Block said that refund anticipation loans are a big need in communities that are low income. People in poorer communities generally live from paycheck to paycheck while juggling debt.
Another tax preparation group, Jackson Hewitt Tax Service, stated that refund anticipation loans are important and needed in economic downturns.

Saturday, January 13, 2018

Tax Refund Cash Advance - Emergency Loans With Tax Refund

If I had made this statement a few years back that you can deal with almost any sort of cash emergency; you would surely have negative opinion towards my statement however, there is a new option that can really help people in times in emergencies, and help save them money as well, this is called a Tax Refund Cash Advance! People used to be so worried whenever a medical emergency or anything like that occurred and they were short on funds. This happened because usually the monthly salaries were not enough and they still are not enough. Cash advances came into being to address all such issues so people do not have to worry even if their pays went out. Tax Refund Cash Advances were in a way that the borrower can take a small loan amount to address his urgency and return back the money along with the interest on his next pay day and get a tax refund for it!

There are simply numerous lenders you can easily find today and a few of them are the pioneers who launched this great idea some time back. You can easily locate them in several financial institutions and see what deals they have to offer regarding Tax Refund Cash Advances. It depends on your pay amount and credit history how much amount you get approved and what your interest rates will be. It is always wise to shop around good before making the final decision because you can always find something better. You can always search for reliable Tax Refund Cash Advance lenders over the web or by making a few calls through phone directories.

It is important that you end up with a reliable lender in order to avoid future complications. Sometimes un-reputable lenders can start fluctuating the interest rates or charge you with useless penalties. This is why it is also important that you go through all the paper work carefully so you can know each and every rule and regulation there is in the agreement. Get Tax Refund Cash Loans from a lender who offers flexible payback terms and has been in business for quite some time. You can find about a lender's reputation and all through reading reviews from people who have already done business with them.

Tax Refund Cash Advance should only be taken when the urgency is important because if you fail to pay on time some of the lenders might start creating problems for you. They make phone calls and keep on bugging you for payback. Also, they charge you with big penalties and even increase the interest rates with time. Finding a reliable cash advance lender is not that hard only if you look around good.

Tips on finding a good Tax Refund Cash Advance Lender:

Ask friends and family for referrals
Check online for testimonials
Read articles related to cash advances for help
Look on forums for referrals of lenders.

Everyone one of us can fall into unexpected situations where funds are needed to escape. Mostly a situation like this would not tell you before occurring and therefore you might get confused about what to do once the emergency stands in front of you. Today, the times and conditions both are rough and it is hard to make a comfortable living; a middle class person's pay is not enough to last for the entire month so it is hard to save anything out of it either. The monthly budgets are really tight and even if there are some savings; an emergency can ask more then that too.

Tax Refund Cash Advance are for getting rid of urgent financial needs such as medical, academic fee, house repairs, car repairs, a debt, a loan installment, and whatever you can think of. There was a time when urgencies left terrible outcomes and conditions once they were gone since many people did not had sufficient amount of money to deal with them while opting for bank loans mean waiting for more then a month at least. Tax Refund Cash Advances eliminated all such problems and provided people with urgent cash to take care of the problem and stop it from getting any worse.

Although compared to traditional loans, Tax Refund Cash Advance are not match when it comes to the amount of money but at the same time they are enough to contaminate the current urgency. They are not long term loans like bank loans and that is why the amount is kept limited so it can be paid back on the next payday; as the name of this loan suggests. Usually a Tax Refund Cash Advance will let you avail an amount from 500 dollars going up to 1500 or may be 2000 dollars. This also depends on how much your monthly pay is and whether you will pledge any collateral or not. If your monthly pay is good enough and you can pledge a valuable asset against the money; the amount can certainly raise more and the interest can be kept lower as well.

Thousands and millions of people today are taking help from Tax Refund Cash Advance and there are several lenders that you can easily find online and offline both. Always talk about the interest rates, late payment penalties, and any other questions that you have in mind before signing up for anything; after all, money cannot be taken without having a valid reason.

Get A Tax Refund Cash Advance From Our Recommended Lenders:

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