H R Block and Liberty Tax require you to complete and file your return before you apply for the advance.
IRS FreeFile allows anyone with 2016 adjusted gross income below 64,000 to use its tax software at no cost.
Clients with simple 1040EZ forms could pay nothing, or up to 100.
Because they hope that by providing you with an advance, they will also be able to generate new business from you.Those loans give answer simple questions and win prizes the company the ability to extract profits from consumers elsewhere, says Adam Rust, director of research.And for the future, consider changing your paycheck withholdings. .Thats because using a tax preparer costs more than you might pay if you did your taxes yourself or used a free, not-for-profit tax-prep concern like.If you are thinking about applying for an advance, here are some questions to consider: Do I qualify for an advance?Aarp Tax-Aide or the, iRS's vita service.Just be aware that the tax preparation company may try to sell you services you dont need.Though your refund will be lower, youll be able to take home more money.State forms cost an additional 49 each.Dont apply unless you expect to receive a refund from the IRS.If you think youll qualify, you can go ahead and apply for.A tax preparer, for example might try to sell you an audit protection service, though the IRS reports that only about 1 percent of all individual tax returns are audited in a given year.Are there any hidden costs?By contrast, using tax software can be far less costly. .What if I really need the advance?Why are tax preparers offering such a generous deal?"The primary reason you wouldn't qualify is if you had an unpaid debt with government, like a student loan, or owe back child support, or have an outstanding garnishment on your wages Prokupek says.
While he adds that more than 80 percent of taxpayers who already have applied for Jackson Hewitt advances have qualified, there is a risk that you pay for tax-prep services but then aren't eligible for the loan.
Jackson Hewitts Prokupek says, for instance, that the typical storefront client pays around 200 to get a federal tax return prepared.