Understanding tax forms can be tricky, especially when you’re trying to determine your eligibility for a Refund Advance. One form that often comes up is the 1099-R. Let’s break down what a 1099-R is and how it relates to your ability to get a Refund Advance.
The original article details the requirements and limitations of the Refund Advance program. Key aspects include eligibility criteria, loan amounts, and how the loan is repaid. It also mentions certain situations that would disqualify an applicant from receiving a Refund Advance.
One specific requirement is that you must have received Forms W-2 or 1099-R, or be reporting income on Schedule C, to be eligible for a Refund Advance.
Understanding the 1099-R Form
A 1099-R form, officially titled “Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.,” is an IRS form used to report distributions from retirement accounts. This includes distributions from:
- Pensions
- Annuities
- Retirement or profit-sharing plans
- Individual Retirement Accounts (IRAs)
- Insurance contracts
If you’ve received money from any of these sources during the tax year, you’ll likely receive a 1099-R form.
The 1099-R provides details about the amount you received, any taxes withheld, and other relevant information needed to accurately file your tax return.
Why the 1099-R Matters for Refund Advances
The original article about Refund Advances explicitly states that applicants must have received either a Form W-2 or a Form 1099-R, or be reporting income on Schedule C. This requirement is in place to ensure that the applicant has a verifiable source of income to base the Refund Advance upon.
Without a W-2, 1099-R, or Schedule C, it’s difficult for lenders to assess the applicant’s financial situation and determine the appropriate loan amount.
Refund Advance Eligibility Requirements
To be eligible for a Refund Advance, you need to meet several requirements, including:
- Expecting a federal refund of $500 or more.
- Having a physical address included on your federal tax return and located within the United States (excluding IL, CT, and NC).
- Being at least 18 years old.
- Not filing on behalf of a deceased person.
- Not filing certain IRS forms, such as 1310, 4852, 4684, 4868, 1040SS, 1040PR, 1040X, 8888, or 8862.
- Having received Forms W-2 or 1099-R, or reporting income on Schedule C.
- E-filing your federal tax return with TurboTax.
- Having or opening a Credit Karma Money™ Spend (checking) account with MVB Bank, Inc., Member FDIC.
Loan Amounts and Repayment
If approved, the Refund Advance will be deposited into your Credit Karma Money™ Spend (checking) account typically within 15 minutes after the IRS accepts your e-filed federal tax return. Loan amounts range from $250 to $4,000, based on your anticipated federal refund, up to a maximum of 50% of that refund amount.
Repayment is deducted from your federal tax refund, which reduces the subsequent refund amount paid directly to you.
What Happens If You Don’t Qualify?
If you don’t qualify for a Refund Advance after the IRS accepts your e-filed federal tax return, your tax refund (minus any agreed-upon fees, if applicable) will still be placed in your Credit Karma Money™ Spend (checking) account.
Conclusion
Understanding the requirements for a Refund Advance, including the significance of the 1099-R form, is crucial for anyone seeking this type of loan. Make sure you meet all the eligibility criteria before applying to avoid disappointment. Having the necessary forms, like the 1099-R or W-2, will help ensure a smoother application process. Remember to review all terms and conditions before proceeding.
