Why Would I Get Denied for a Tax Advance?

A tax advance is a short-term loan that allows you to access a portion of your expected tax refund before the IRS issues it. Tax advances are typically offered by banks, credit unions, and other financial institutions.

There are several reasons why you may be denied for a tax advance, including:

• Your physical address is located outside of the United States, a US territory, a PO box, or a prison address. Tax advances are only available to taxpayers who have a physical address in the United States or a US territory.
• Your physical address is in one of the following states: IL, CT, or NC. Tax advances are not available to taxpayers who reside in Illinois, Connecticut, or North Carolina.
• You are less than 18 years old. Tax advances are only available to taxpayers who are 18 years of age or older.
• The tax return filed is on behalf of a deceased individual. Tax advances are not available for tax returns filed on behalf of deceased individuals.
• You have outstanding tax debts. If you have any outstanding tax debts, you may not be eligible for a tax advance.
• Your tax refund is too small. Tax advances are typically limited to a certain percentage of your expected tax refund. If your tax refund is too small, you may not be eligible for a tax advance.
• You have a poor credit score. Lenders may consider your credit score when evaluating your application for a tax advance. If you have a poor credit score, you may be denied for a tax advance.
• You have recently filed for bankruptcy. If you have recently filed for bankruptcy, you may not be eligible for a tax advance.

If you have been denied for a tax advance, you can contact the lender to find out the specific reason for the denial. You may also be able to appeal the denial.

Here are some tips to increase your chances of getting approved for a tax advance:

• File your tax return early. The earlier you file your tax return, the sooner you will be able to apply for a tax advance.
• Make sure your tax return is accurate. Any errors on your tax return could delay your refund and make you ineligible for a tax advance.
• Choose a lender that offers tax advances. Not all lenders offer tax advances. Do some research to find a lender that offers tax advances and has good reviews.
• Compare interest rates and fees. Tax advances can come with high interest rates and fees. Be sure to compare the rates and fees of different lenders before you apply for a tax advance.

If you are denied for a tax advance, there are other options available to you for getting access to your tax refund. You can:

• Wait for your tax refund to be issued by the IRS. This is the slowest option, but it is also the most affordable.
• Get a refund anticipation loan (RAL). RALs are similar to tax advances, but they are offered by banks and credit unions. RALs typically have lower interest rates and fees than tax advances, but they also come with some risks.
• Use a tax refund anticipation check (RAC). RACs are similar to RALs, but they are offered by check cashing stores. RACs typically have higher interest rates and fees than RALs, but they are also more convenient.

Before you apply for a tax advance or any other type of loan, be sure to understand the terms and conditions of the loan. Make sure you can afford the interest rates and fees, and make sure you understand the risks involved.