Jackson Hewitt charges a finance fee for its Early Refund Advance loans, which varies depending on the amount of the advance. These charges are directly deducted from your tax refund.
Understanding Jackson Hewitt's Refund Advance Fees
Jackson Hewitt offers an Early Refund Advance loan that allows you to access a portion of your anticipated tax refund quickly. Instead of an interest rate, these loans come with a fixed finance charge. This charge represents the cost of borrowing the advance and is repaid when your full tax refund is issued.
Below is a breakdown of the finance charges for different advance amounts:
| Early Refund Advance Loan Amount | Estimated APR | Finance Charge |
|---|---|---|
| $100 | 35.53% | $7.30 |
| $300 | 35.53% | $21.90 |
| $500 | 35.53% | $36.50 |
| $1,000 | 35.53% | $73.00 |
How the Refund Advance Works
The Early Refund Advance is a short-term loan secured by your expected tax refund. When you apply and are approved for a refund advance, the loan amount (minus the finance charge) is typically disbursed quickly. Once your actual tax refund is processed and issued by the IRS, the loan amount plus the finance charge is repaid directly from your refund. This means you do not receive the full refund amount; rather, the advance and its associated fee are covered by it.
For example, if you receive a $500 Early Refund Advance, a finance charge of $36.50 will be applied. Your tax refund will then be used to repay the $500 loan plus the $36.50 finance charge.
