Did you know that if you claim an “Earned Income Credit” or an “Additional Child Tax Credit,” the IRS can delay your refund?
The delay was created to combat tax-refund fraud. So, your refund is delayed until they check you out!
That’s one of the reasons that tax preparation companies offer tax-refund advances – so you don’t have to wait weeks or months to get your refund.
But here’s the thing. It’s not an “advance”. It’s a loan from a bank, and they have the right to check your credit, report the loan on your credit report, and it could possible reduce your credit score.
And, if you read the fine print, your “loan” is subject to underwriting requirements—which means that even if you apply for the tax-refund advance, there is no guarantee that you’ll be approved.
The interest rate is usually zero. However, you will be charged a “processing fee” – usually $40 to $60 – for the privilege of getting your refund in advance. And there is usually a limit to the amount the tax prep company will advance. For example, if you are expecting a refund of $4,500, they may only advance $2,000. When the refund is received, the $2,000 will be deducted.
By the way, according to H&R Block, the tax-refund approval rate is 75%.
If you take the standard deductions—don’t pay for someone to prepare your taxes!
If you can wait a few more weeks—don’t take the tax-refund advance!
Published by Heather Paige Moody
Welcome! I'm Heather ( AKA: Paige) Moody . A Little About me: I was born and raised in a small town in Eunice, Louisiana where I started my first mortgage company in 2005 at the age of 21 years old. Since 2005 I’ve grown to know everything when it comes to the industry, from owning a mortgage company, processing loans, mortgage underwriting rules, to now managing.
Why I’m in the Mortgage Business:
My family has a history of Banking and real estate . I could see at an early age how satisfying the real estate profession was for them, so I started off as a Real Estate agent and quickly realized that the mortgage side was my passion.
I am a mother of 4 very active kids that have been/ are being raised in the Real Estate /mortgage world. I have always said that their first baby blanket was a file folder.
I love to be able to teach that going the extra mile for others is such a blessing to us as well as the other person. Most importantly that no matter what the obstacle is that we must work hard and give it our all in all that we do. Our family lives at a field or a gym for most of the year. Between baseball, cheer, volleyball, football and anything they can possibly sing up for, I have developed little-known disease called Bleacher Butt.
When I am not working ( or should I say.. not behind my desk) or attending an event for one of the kids . I really enjoy bible studies , reading and listening to podcast. My children go to 2 different schools and I am so blessed to be part of two Mom’s in Prayer groups. It is a National Organization that Moms can get together to pray for our children and our school.
As the Southern Mortgage Mom, I help homebuyers and Real Estate Agents make the Mortgage buying process as stress free as possible. I have been called the miracle worker by clients and agents( on occasion) because I have saved some mortgage loans that others have denied . It has nothing to do with miracles , but all to do with knowing how to get a loan approved.
If I am lucky enough that you chose me or my team as your go to lender, I promise that I will be fair, I will be honest and you will feel like family when you sign the final papers and I will keep in touch (till you tell me not to) long after the mortgage loan is closed. Looking forward to working with you when it comes time to buy a home or refinance your current mortgage.
View all posts by Heather Paige Moody
Southern Elite Team 