Getting a Tax Refund Instantly: Things to Consider

You can expedite your refund and avoid waiting for the CRA to process your return by requesting an expedited tax refund. In essence, you are receiving a short-term advance secured by your anticipated reimbursement.

How does an immediate tax refund work?

Your tax expert does the math and calculates how much you should get back. The professional will issue your return right away if you qualify for an instant tax refund and decide to proceed. After that, they electronically file your return with the CRA. Your tax preparer receives the money immediately after the CRA delivers your return in order to reimburse them for the money they gave you.

Instant tax refunds might come at a hefty price. In essence, you are paying a fee to borrow your own funds, which reduces your disposable income. You can owe your tax preparer money if your actual refund is less than what was predicted. To be eligible for an immediate refund, your tax preparer can have a minimum refund amount.

CRA processing time for tax refund

The CRA wants to complete your return in two weeks if you file electronically, which is probably less time than some of us need to organize our tax paperwork. The CRA takes about eight weeks if you are a traditionalist and file your return on paper. Therefore, even though it may seem like forever, waiting for your return is not as long as you might imagine, particularly if you filed electronically and have set up direct deposit.

Additionally, the CRA offers a number of practical ways to find out how your refund is progressing. For safe online access to your tax return data, you can utilize the MyCRA app, phone the CRA directly, or log onto My Account on the CRA website.

Benefits of immediate tax returns

Instant money: This can be a lifeline if you need the money immediately or are dealing with an unforeseen expense.

No credit check: Instant tax returns and tax refund advances, in contrast to standard loans, do not necessitate a credit check, which is undoubtedly advantageous if your credit score is below ideal.

Ease of use: The tax preparer’s office, where you may file your return and get your refund, is already where you are.

Possible financial savings: In certain situations, choosing a fast refund could save you money because the fee includes the expense of tax preparation.