If you’re getting your taxes done at a tax preparation company, you may be tempted to use one of their programs to get your tax refund advanced. After all, if you know you’re getting a refund, why wait for the IRS when you can get the money now?
Whether you choose the refund anticipation check (RAC) or the personal line of credit option, you will be losing money when you choose to get it early. Refund anticipation checks can cost anywhere from $30 to $60 in fees and a personal line of credit can cost as much as $6.95 per month with interest rates as high as 35 percent.
It might be difficult, but waiting for your refund check from the IRS will definitely give you much more of your tax refund to use than an advance will.