For those that may not know it, filing your income taxes early has its benefit. Not only do you sidestep the rush by filing during tax season, you can get your tax refund early through an advance. Now, if you need cash in a jiffy, then you can consider using your paycheck stub and your income tax refund as security for your loan and file your income tax return earlier than usual. Here is a step by step approach if you this piques your curiosity.
- Inspect your latest paycheck stub. Whip out your latest paycheck stub and take a close look at the details on it. Your name, employer’s name, office address, your gross pay (year to date), and the tax deductions should be explicitly and clearly displayed on the stub. Furthermore, the figures should be correct and accurate. In addition, it is crucial that the information on the stub is exactly the same as what your employer declares to the Internal Revenue Service or IRS. It is highly recommended to confirm all this with your employer.
- Find a tax-prep company. A tax-prep or tax preparation company is the type of business you will need to work with in order to use your paycheck stub in filing your income tax return early. These types of company will provide you the loan, through a specific and accredited lender, representing an advance on your tax refund. The repayment for this type of loan will come from your tax refund from the IRS. This being said, the amount of the loan they will provide you will be based on the amount of the refund you will receive. In other words, the security of the loan will be your income tax refund. It is as simple as that. Of course, the loan does not come without some type of effort on your part. The tax-prep company will normally have rigid requirements that will include your latest paycheck stub.
- Submit everything needed. Once you have a tax-prep company to work with, you will be required to prepare all the necessary documents in order to qualify for the loan and file your income tax return. Don’t worry; the tax-prep company will do the legwork for you. All you have to do is submit the necessary documents and fill up the forms. Basically, you will need to submit your latest paycheck stub. In some cases, you may have to submit your last 2 to 3 paycheck stubs for verification. Aside from this, you will have to provide a copy of your driver’s license, social security identification card, state ID, and the information for all your dependents if applicable. If you are planning to declare other income streams aside from your job, then make sure to have the documents for this ready as well. With all the documents submitted, the tax-prep company will evaluate your application and approve the loan based on these documents.
Once you are approved for the loan, you will be given an advance on the
tax refund and the tax-prep company files your income tax return for
you. Not a bad deal, huh? The best part of it is that you need not worry
about the repayment of the loan since your tax refund will cover it.