It's important to understand what a tax refund advance is and how it works before committing to it.

What is a Tax Refund Advance?

A tax refund advance is a short-term loan that is offered by some tax preparation services that partner with lenders that allows you to receive a portion of your tax refund before it has been processed by the IRS. This advance is typically provided in the form of a loan and is repaid when the IRS releases the full amount of your refund. A tax refund advance is a short-term loan that is offered by a lender

It's important to remember that this type of advance is not offered by the IRS and like most loans, may come with certain fees or interest rates. It's always best to do your research and compare different tax refund advance options to make sure it will be to your benefit.

How much will my advance be?

Your tax refund advance is based on the amount of your expected tax refund along with, personal information, tax information, and related data. all of these factors are taken into account to determine your tax refund advance amount.

At ARC Tax, you can choose to see if you qualify for:

• Up to $1,000 (with NO bank finance charge)

• Up to $6,500 (WITH a bank finance charge)

Should I get the tax refund advance?

Here are some things to consider when deciding whether or not to accept the tax refund advance:

Pros:

• Receive your tax refund money quickly, often within a few days.

• You can use the money to pay for necessary expenses that come up before you receive your tax refund.

• Tax refund advances can help bridge the gap between when you need to pay for something and when your tax refund is available.

Cons:

• The tax refund advance usually comes with a fee. (Be sure to ask about a fee-free option to avoid dipping into your refund.)

• It may be difficult to qualify for a tax refund advance if you have bad credit or no credit.

• You may end up owing more money to the IRS if your tax refund is smaller than expected.

Be sure to research all the details, including interest rates, fees, and repayment terms, before deciding if a tax refund advance is right for you.