Tax refund advances are short-term loans that allow taxpayers to access a portion of their expected tax refund before the IRS officially issues it. These advances are offered by financial institutions and tax preparers, helping individuals get their funds sooner. However, understanding the differences between pre-acknowledgment (pre-ack) and post-acknowledgment (post-ack) advances is essential before making a decision.
Pre-Acknowledgment (Pre-Ack) vs. Post-Acknowledgment (Post-Ack) Advances
Pre-Acknowledgment (Pre-Ack) Advances
Definition: These advances are provided before the IRS confirms receipt and acceptance of a tax return.
Application Timing: Available immediately after filing, typically beginning in January.
Risk Factor: Since the IRS has not yet processed the return, there is a risk of delay or rejection.
Post-Acknowledgment (Post-Ack) Advances
Definition: These advances are granted only after the IRS has acknowledged and accepted the tax return.
Application Timing: Available within 48 hours after the IRS accepts the return.
Risk Factor: Lower risk, as the IRS has confirmed the return’s acceptance.
Step-by-Step Guide for Applying Through Different Banks
1040-SR ProWeb Tax Refund Advance Process
Begin the Process: Navigate to the sidebar and select "E-File."
For TPG Bank:
Select "Advances Option" from the drop-down menu.
Choose the disbursement method.
Select "With Finance Charge up to $7000."
For Refund Advantage Bank:
Choose "Advances Option" from the drop-down menu.
Select the desired advance amount (e.g., $1000, $2000, etc.).
For pre-ack advances, select "Yes."
For EPS Bank:
Select "EPS Advance" from the menu.
Choose the preferred disbursement method.
Select the appropriate finance program.
Finalizing the Application:
After selecting the desired options, proceed with the e-filing process to submit the return.
Frequently Asked Questions (FAQ)
1. What is the maximum tax refund advance amount?
The amount varies by financial institution. Some may offer up to $7000, while others have lower limits.
2. Are there fees associated with tax refund advances?
Yes, fees vary by bank and advance amount. Review the terms carefully before applying.
3. How soon can I receive my advance?
Pre-Ack Advances: May be disbursed within a few business days after filing.
Post-Ack Advances: Usually disbursed within 24-48 hours of IRS acknowledgment.
4. Can I modify my advance request after submission?
Changes may not be possible after submission. Contact the provider to check if adjustments are allowed.
By understanding these options, taxpayers can make informed decisions on accessing their refunds quickly and securely.