Tax returns can add up to a lot to your personal finances. However, with the new regulations for tax refunds in place, some people may experience delayed refunds. And if you are one of those who are getting stalled tax returns, then the tax refund loans can come into picture. Initially, the tax refund loans stirred up the thoughts of predatory lending but the same has been revamped currently as these loans are a way of bringing in more traffic to the tax preparation stores.

What is a tax refund loan?
Similar to the tax refund, a tax refund loan comes without any financing fee or interest. The tax refund loans are provided by the tax preparation services and more importantly, the loan requires you to apply for the loan in person in order to qualify for the same. Interestingly, tax refund loans are a faster form of financing as you can expect to get your money in a day as well. Moreover, you also do not need to make any repayments. The tax service makes the deduction from the loan amount once the refund from the federal or state comes through and sends the money to you.

What is the eligibility criteria for a tax refund loan?
The providers of tax refund loan take care of the eligibility criteria such as the age, income, and your creditworthiness. Apart from these, another vital factor that is considered for being qualified for a tax refund loan is making sure that your taxes are in place in person.

This is important as you can get the tax refund loan only from the company that is doing your taxes. So, ensure that you have taxes prepared in person.

How much do you pay for a tax refund loan?
Although tax refund loans do not call for any financing fees or interest, as mentioned earlier, this does not mean that there are no associated costs involved.

Some of the costs that come along are tax preparation fees. Although most of the tax preparation fees online are free of charge, you may have to incur some charges or fees while tax filing in-office.

You may have to pay the tax preparation fee of anywhere between $50 to $500 when filing the taxes in a store. Some of the times, the fees may even go higher than the specified amount. Moreover, there is an exception here when it comes to the filing of Form 1040EZ as you do not have to pay for the tax preparation fee while filing it in-store. It is advisable to consult your financial advisor for the right fee amount before paying any in-store fee for the same.

Who benefits from a tax refund loan?
The decision to choose a tax refund loan is not always a profound choice. However, those who are relying on a tax refund loan to bear the personal or day-to-day expenses can find this option a preferred pick.

Moreover, one can also benefit from a tax refund loan in the following ways:

• If you file early – In case you file early and depending on service you file with, you may get a tax refund. The refund will be credited to you mostly before the holiday season, which would balance the fees.
• If you claim an Additional Child Tax Credit and Earned Income Tax Credit – In case you are waiting for tax credits f more than $6000, then these deductions will apply. Moreover, it is seen that federal regulations call for extra verification when it comes to the claims related to Earned Income Tax Credit and Additional Child Tax Credit.