Definition

A short-term loan that advances you money based on your expected tax refund, often with high fees and interest.

What to consider

  • Gather all your documents early to simplify the filing process.
  • Double-check your numbers to avoid mistakes.
  • Consider using reliable software or professional help if needed.

Real world scenarios

  • Before her tax refund arrived, Grace took a tax refund anticipation loan to cover an urgent expense, even though the fees were high.

Related terms

Taxes