Filing your taxes can often feel like a daunting task, but with the advancements in technology, the process has become significantly easier and more accessible. Doing your taxes online is not only convenient but also unlocks opportunities to receive your refund quicker, sometimes even with a refund advance. This guide will walk you through the essentials of filing taxes online and how you might be able to access your refund sooner.
Understanding the Refund Advance Program
If you’re anticipating a tax refund, you might be interested in a Refund Advance. It’s important to understand that a Refund Advance is essentially a loan based on your expected tax refund, not the refund itself. Financial institutions like First Century Bank, N.A. or WebBank, which are not affiliated with MVB Bank, Inc., Member FDIC, may issue these loans. These loans often come with a 0% APR and $0 loan fees, making them an attractive option for those needing immediate access to funds.
However, it’s crucial to remember that eligibility for a Refund Advance isn’t guaranteed and is subject to various conditions. These conditions are in place to ensure security and compliance, and to assess the risk associated with advancing funds before the IRS processes your tax return.
Who is Eligible for a Refund Advance?
Several factors determine your eligibility for a Refund Advance. Here are some key criteria you need to meet:
- Expected Refund Amount: You generally need to expect a federal refund of $500 or more.
- Address Requirements: Your physical address must be included on your federal tax return, be within the United States or a US territory (excluding PO boxes and prison addresses), and not be in Illinois, Connecticut, or North Carolina.
- Age: You must be at least 18 years old.
- Tax Return Type: The tax return cannot be on behalf of a deceased person or involve certain IRS forms such as 1310, 4852, 4684, 4868, 1040SS, 1040PR, 1040X, 8888, or 8862.
- Income Documentation: You typically need to have received Forms W-2 or 1099-R, or be reporting income on Schedule C.
Additionally, to apply for a Refund Advance, you are usually required to e-file your federal tax return through tax preparation software like TurboTax and have or open a Credit Karma Money™ Spend (checking) account with MVB Bank, Inc., Member FDIC.
Loan Amounts and Repayment Details
If your application for a Refund Advance is approved, you won’t necessarily receive the full amount of your expected refund in advance. Loan amounts are typically offered in set increments, such as $250, $500, $750, $1,000, up to $4,000. The actual loan amount you are approved for will depend on your anticipated federal refund, often capped at 50% of that refund amount.
It’s important to note that approval is not immediate. You will only receive a final decision after the IRS accepts your e-filed federal tax return. Repayment of the loan is automatically deducted from your federal tax refund, which will reduce the amount you ultimately receive.
Accessing Your Funds Quickly
One of the significant benefits of a Refund Advance is the speed at which you can access the funds. If approved, the loan amount is typically deposited into your Credit Karma Money™ Spend (checking) account within about 15 minutes after the IRS accepts your e-filed return. You can then access these funds online through a virtual card, with a physical debit card arriving within 7 to 14 days.
Your remaining tax refund, after deducting the loan amount and any applicable fees, will also be deposited into your Credit Karma Money™ Spend (checking) account once it is disbursed by the IRS, usually within 21 days of e-file acceptance.
What Happens if Your Refund is Less Than Expected?
In a scenario where your actual tax refund is not sufficient to cover the full loan amount, you are generally not required to repay the remaining balance. However, you might be contacted regarding the outstanding balance and given the option to repay it if you choose. It’s also important to be aware that if your loan is not fully repaid, you may not be eligible for a Refund Advance in the future.
Conclusion
Filing taxes online offers numerous advantages, including convenience and potentially faster access to your refund through programs like Refund Advance. While a Refund Advance can provide quick financial relief, it’s essential to understand the eligibility criteria, loan terms, and repayment process. By being informed and prepared, you can navigate online tax filing and refund advances effectively, making tax season less stressful and more beneficial.
