![]() Your tax preparer gets to keep $105 ($45 + $60) of your expected refund, leaving you with $1,395 ($1,500 – $105) as your instant refund. You’ll receive $1,395 as your instant refund. 5% on the remaining amount of your refund.The good news is, the federal government puts a cap on the fees that can be charged for an instant tax refund : The fees of instant tax refunds, explained Because while getting your refund right away can be pretty sweet, it does come with disadvantages, one being a hefty price tag. It’s time to talk about the elephant in the room: the cost of your instant refund. Knowing the price of instant gratification Sounds like a win-win scenario, right? But in many cases, it may not be as win-win as it appears. Once the CRA issues your refund, the money goes directly to your tax preparer to repay the money they advanced you.They then submit your return to the CRA electronically.If you’re eligible for an instant refund and choose to proceed, your tax preparer gives you your refund immediately.Your tax professional crunches the numbers and estimates your expected refund.Let’s say you’re wrapping up your tax return with a tax preparer who offers instant refunds. Just keep in mind when you’re looking around that the typical term for this service in Canada is “instant tax refund” or “instant refund,” and not “a tax refund loan.” How an instant tax refund works But where can you get one? There’s good news: Many of the larger tax preparation companies in Canada offer instant refunds as a service. So you’re sold on the idea of instant tax refunds. Essentially, you’re getting a short-term advance that’s backed by your expected refund. What an instant tax refund isĪn instant tax refund is a way to fast-track your refund and bypass the wait for the CRA to process your return. Here’s the download on these loans and where to snag one. Think of an instant tax refund as a very short-term loan or advance (which is why they’re sometimes referred to as “tax refund loans” or “tax refund advances”!). Understanding instant tax refunds: not your typical loans
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