There are various reports that there may be delays in income tax refunds in differing states due to legislation that may help tax payers, but delayed the return process and states being unable to, financially, send out the refunds in time. What many tax preparation companies feel could be the result is a rise in refund anticipation loans.
Refund anticipation loans have been a way for those expecting a return on their income tax to quickly gain access to that money without the wait. Since tax returns for many may be slower than usual, though not by too much, many taxpayers still may be considering a loan on their income tax.
This can be beneficial, but as with any loan, it could cause taxpayers problems. Refund anticipation loans do require that you pay interest and there are often fees associated with this type of loan, so be sure you are financially stable enough to afford any costs incurred from this type of loan.
If you can afford to wait on your income tax refund, it goes without saying that you will benefit more than getting a loan. However, if for emergency reasons or simply for the fact that you want your money now and are going to get a refund anticipation loan, be sure to go with a reputable company and look for the lowest rate possible.
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