Q:

Can you get a cash advance on a refund from a tax return?

A:

Quick Answer

As of 2015, several tax preparation companies offer cash advances, often called refund-anticipation loans, to customers. Cash advances are popular among low-income taxpayers who receive the Earned Income Tax Credit and don't want to wait to receive a check from the IRS, according to Daily Finance.

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Full Answer

Taxpayers who requested refund-anticipation loans and prepaid debit cards accounted for 10 percent of H&R Block's revenue in 2014, notes Daily Finance. Liberty Tax Service earned 20 percent of its revenue from such taxpayers over the same span. Nearly 84 percent of taxpayers who got refund anticipation loans in 2014 were low-income taxpayers, and 21.6 million filers used these types of services in that year.

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