RALEIGH, N.C. (WTVD) -- The IRS has already processed more than 26 million tax returns and paid out more than $26 billion in tax refunds just a little more than a month after the 2022 filing season started. If you haven't filed your taxes yet, but need your refund immediately, several companies are offering same-day refunds, there's a catch.
If you file electronically the IRS says you should have your refund within twenty-one days if you opt for direct deposit, but some people can't wait that long. Several tax preparation companies are offering what's known as a refund anticipation loan. It gives you a portion of your tax refund without the wait. Raleigh CPA Faith Bynum Patterson explains, "Refund anticipation loans, you're going to have to pay some sort of a percentage of whatever the company deems is appropriate for their service."
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Patterson explains how those fees can be in preparing your taxes, or interest on the tax refund loan amount. If you opt for the refund anticipation loan, read the small print as you do not get your entire refund that same day, instead just a set amount, which is pre-determined by the company offering you the refund anticipation loan. Also, the companies offering the service, don't give you cash, instead, the funds could be loaded on a pre-paid card. She adds, "If you do have to go that route, just make sure that you understand what you're up against. You make sure that the agreement is very clear with the company that is giving you the loan."
The details are always in fine print. The IRS says they've increased their customer service team and expect this filing season to go smoother than years past. The IRS says the quickest way to get your full refund, is to file electronically and opt for direct deposit as opposed to a paper check.