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HideIMPORTANT NEWS: The IRS has officially pushed out this year’s tax filing and payment deadlines from April 15 to July 15, 2020 due to the ongoing COVID-19 Coronavirus pandemic. Learn more on how this will affect your tax return.

Get Your Tax Refund Early in Advance – 2020 Tax Tips

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Tax season is just around the corner and even though the IRS is not accepting the returns just yet, there are already options out there to get the refund early.

H&R Block offers some type of early refund advance every year and there are already details on what’s available this time around. Starting January 4, you could receive up to $3,500 in Refund Advance loan.

Steps to take

First step is to make an appointment at one of the H&R Block locations. You will need your social security number, last year tax return and personal contact information that a tax pro will use to determine whether you qualify for a loan and for how much. Step two is the H&R Block response regarding your loan. The approvals are determined the same day and you will get an email or a text message with the loan amount. The last step is the issuance of the Emerald Prepaid Mastercard; that’s how the loan is disbursed.

It is important to recognize that the early advance from H&R Block is not the refund you anticipate from the IRS. It is in fact a loan. The loan comes in the following amounts: $250, $500, $750, $1250, $3,500.

Loan Repayment

The most common way to repay the refund advance is by applying a portion of your actual refund issued by the IRS to cover the loan amount. This happens at the completion of preparing your tax returns and the loan amount is discounted from your refund account. Additionally, you can cover the cost of tax preparation at H&R Block with the refund balance. There might be fees associated with repayment of the loan from your refund account so inquire with a tax pro about your options and how to minimize the fees.

Some final thoughts

  • The good – 0% financing on the loan. No finance charges or loan fees.
  • The bad – personally, I would prefer there was an option to have the loan transfer directly to a bank account, but this is not an option here.

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