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::February Edition::

Welcome to the February edition of Financial Friday, Oklahoma Money Matters’ online personal finance question and answer forum. This month, we're answering a question about using Tax Refund Advance Loans.

 

I anticipate receiving a tax refund this year, but I need those funds immediately to cover my expenses. I've been advised to explore refund anticipation loans while filing my taxes. Please tell me more.

Tax Refund Advance Loans, also known as Refund Anticipation Loans, might attract individuals relying on tax refunds to address pressing financial obligations or make significant purchases. These loans enable filers to borrow an amount equivalent to their anticipated tax refund. By accepting such a loan, your tax refund is directed to your tax preparer upon IRS processing rather than reaching you directly. The preparer retains the loan amount, including interest, and returns any surplus to the borrower. It's essential to weigh the advantages and drawbacks before committing to this financial option.

Advantages:

Drawbacks:

Alternatives to consider:

Considerations for the future:

For additional tax preparation resources, feel free to explore our resources at https://www.oklahomamoneymatters.org/Consumers/Taxes.shtml

For more resources to help you in your personal finance journey, check out our resources at OklahomaMoneyMatters.org.

As always, if you have money-saving tips you’d like to share, send us an email at OklahomaMoneyMatters@ocap.org or submit a personal finance question for a future edition of Financial Friday.

Thanks for participating in Financial Friday. It's never too late to take control of your financial future!

The OKMM Team

Financial Friday is a service of Oklahoma Money Matters, the financial literacy initiative of the Oklahoma College Assistance Program, a division of the Oklahoma State Regents for Higher Education.

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