Most people are curious about when they will get their tax refund. For those who file and use the EITC for the 2020 tax year, they can expect to get their refund no earlier than the first week of March.
Prior to 2016, refunds were commonly issued starting around the end of January, with or without an EITC claim. This year’s date for those filing with the EITC is almost 2 weeks later than the mid-February date for the 2016 tax year, and now almost a full month later than 2015. This is because in 2015 Congress voted on legislation which would allow the IRS to verify income reported on these returns prior to funding them. The earliest date also assumes that the filer is using direct deposit and there are no other issues with their return.
Although it is wise to have a budget and stick to it, many people are accustomed to getting their refunds much sooner than they will be in 2021. Combined with the recent spending during the holidays, this may cause financial distress for some. Even though you can’t get your refund from the IRS until later, you might be able to get an advance on your refund within 24 to 48 hours of the IRS accepting your return.
How do you do that?
Once you have your necessary paperwork to file, some qualified tax services will make a tax advance loan based on your anticipated refund. Your preparation fees are typically set up to be deducted from your refund amount later, so you don’t have to come out of pocket up front. Once the IRS accepts your return, you receive the advance. Then when the IRS sends your refund, your advance amount and any fees are deducted automatically, with the remainder going to the filer.
For more information on filing taxes and to see if you qualify for the EITC visit irs.gov.
Taxes can be overwhelming. That's why we've created the Sunset Finance Guide to Tax Returns to provide more information.