can you borrow against this tax years return early using your last pay stub?

Answer 1

To my knowledge there are none of the tax franchises offering this program for tax year 2007 because the two banks that supported them have declined to renew the contracts. I know for a fact that the big two franchises have no intention of finding a new bank because everybody was losing money on the deal even with the very high charges.

Answer 2

No. Once you are ready to file your tax return many preparers will loan you the amount of your expected refund but they charge you an extremely high interest rate. I've seen rates as high as 2,633% APR in the worst of cases and 900% APR is very typical.

If you know that you will be receiving a large refund at tax time, do yourself a favor and adjust your withholdings to reduce the refund and increase your take-home pay each payday. As a VERY rough rule of thumb, for each $1,000 in expected refund, increase your W-4 withholding allowances by 1. If you're currently claiming Single and 1 allowance and expect a $4,500 refund, file a new W-4 with your employer claiming 4 or 5 allowances.

This is perfectly LEGAL, by the way, as you are simply ensuring that you do not overpay your taxes. When you overpay your taxes you are making an interest-free loan to the government and getting less money in each paycheck. That just doesn't make sense! Personally I'd rather have to PAY a few hundred $$$ at tax time (and usually do) as it puts the most amount of money in MY hand throughout the year.

Answer 3

If you want to borrow from your taxes, simply reduce the amount of taxes coming out of your paycheck!

If you are getting a refund each year, but then have to borrow against it throughout the year, then adjust your withholding. Why would you pay interest to borrow money that you are loaning to the governement?

Answer 4

If you are referring to the advance refund so to speak offered by tax franchises, yes you can ----- However you will be charged interest because it is actually a loan.