What is a Refund Loan?

Refund Anticipation Loan (RAL)

A RAL is a loan to a taxpayer based on the amount of their Federal tax refund. The client receives the RAL check within 1-3 days after filing their tax return electronically. When the IRS (or State taxing authority) Direct Deposits the client’s actual tax refund, the refund pays off the loan and any additional money is given to the client in a second check which is printed in the tax office.

Benefits to Taxpayer

• Receive loan check in 1-3 days
• Tax Preparation fees can be deducted from the loan amount
• Safety of picking up check at Tax Preparer’s office
• Client can choose amount of the bank fee by choosing the amount of the loan
• Client can get up to 100% of their Earned Income Credit at no additional charge

Client Eligibility

Taxpayers are eligible to apply for a RAL if:

• They meet all the eligibility requirements for the Bonu$ Deposit Account (see Bonu$ eligibility)
• Total income is not from Schedule C
• If the taxpayer is not approved for a loan then they will automatically be placed in the Refund Electronic Check program.  Once we have e-filed the return it cannot be withdrawn or stopped.

Bonu$ Deposit Account (Bonu$) or Refund Electronic Check

A Bonu$ Deposit Account, or Bonu$, is an account opened at Bank One to receive the Direct Deposit of a client’s refund from the IRS or State taxing authority. A client who requests a Refund Anticipation Loan (RAL) automatically receives a Bonu$. A client can also request a Bonu$ without a RAL, in which case a check is issued when Bank One receives the Direct Deposit of the tax refund.

Benefits to Taxpayer

• Receive tax refund in 10-21 days (for Federal tax refund, State refunds average 1-4 weeks)
• Enjoy benefits of Direct Deposit without a checking or savings account
• Tax Preparation fees can be deducted from the refund
• Safety of picking up check at Tax Preparer’s office
• Client can establish Direct Deposit Experience with Bank One

Client Eligibility

Taxpayers are eligible to apply for a Bonu$ if:

• They file Federal Tax return electronically
• They are at least 18 years old
• Their Federal tax refund exceeds the amount of fees to be deducted