It has long been the case that if you owe money, your federal income tax refund can be seized to satisfy your debt. Again, your tax preparer knows this and a lack of earned income could result in an RAL denial.ĥ. If you don't make enough money, your ability to claim certain tax breaks, like refundable credits, could be limited.

The key part of 'earned income tax credit' is 'earned income.' The amount of the credit is based on earned income - but not unearned income - which means that taxpayers who rely on dividends and interest don't qualify, only those who actually work for a living. You can check the phaseout amounts for 2017 here (IRS Rev. Your tax preparer knows this, and if your income won't support those credits, it's likely that your tax refund could be too small to be worth offering you a loan (remember that you have to account for fees, including tax prep, in the total). If you make too much money, you won't qualify for the tax credits. Those credits are generally restricted by a 'completed phaseout amount' which is the amount of income at or above which no credit is allowed. The reality is that most of the big dollar tax refund checks are tied to refundable tax credits, like the EITC and the ACTC. I know, you're scratching your head on this one, but hear me out. If your tax preparer can't put together your return, they may not be able to justify offering you a loan.ģ. However, the IRS specifically bars tax preparers from e-filing your tax returns without receipt of forms W-2 (as well as forms W-2G and 1099-R, if applicable). Banks, employers, and others generally have until January 31 to get your tax forms to you (you can check specific due dates here), so it can be tempting to show up at your tax preparer's office with your last paycheck in hand - and nothing else. If you've been the victim of a data breach and decided to take advantage of a credit freeze, the freeze affects access to your credit information. ( Quick add: There may be another reason you fail a credit check, even if you have good credit.

That makes it more difficult to know what your bottom line might be and it also makes it more likely that the lender could rely on other criteria, like a credit check. The IRS no longer provides a 'debt indicator' which advises the lender in advance whether any part of your refund is earmarked for offset. All kinds of things could reduce the amount you actually receive, including tax law changes and offsets (more on those in a moment). That means that your tax refund must be large enough after you take out interest rates and fees, as well as any tax prep fees, to pay off the loan. You have to repay the entire amount of the loan even if you receive a smaller tax refund than you anticipated and even if you don't receive any tax refund at all. If you've been turned down for a tax refund-related loan, it might have been for one of these reasons:ġ. Sometimes, you'll get turned down even if you think you've done everything right and even if you've had no problems in prior years, and you may not know why. But not all efforts to secure an RAL are successful. With that in mind, some taxpayers use a tax Refund Anticipation Loan (RAL) to bridge the gap between the first of the year and mid-to-late February.

Turbotax return still pending