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Important Tax Updates That Will Change After 2025

In the absence of Congressional action, 2026 will usher in significant tax adjustments, such as increased tax rates and reduced standard deductions. Anticipate substantial 2025 tax updates on the horizon, all attributed to the repercussions of the 2017 tax reform legislation.

Beginning in 2026, a significant number of individual tax provisions are set to revert back to the regulations implemented in 2017. These provisions, which are currently scheduled to expire after 2025, will require action by Congress to be extended beyond that point. Let’s delve into the essential provisions that are due to expire.

  • 2025 Tax Update 1. In the upcoming year of 2025, alterations are set to take place within the individual income tax brackets. tax rates will return to 10% ~ 15% ~ 25% ~ 28% ~ 33% ~ 35% ~ 39.6%.
  • 2025 Tax Update 2. We can expect to see significant increases in standard deductions in 2025. The legislation passed in 2017 led to a substantial doubling of these deductions, marking a significant shift in tax policy.
  • 2025 Tax Update 3. In the year 2025, the child tax credits have seen a significant increase compared to the amount set before 2018. The credit has now been raised to $2,000, up from $1,000.
  • 2025 Tax Update 4. In the tax reform bill of 2017, a change was made to the AGI (Adjusted Gross Income) cap for cash donations to qualified charities, boosting the limit from 50% to 60%.
  • 2025 Tax Update 5. In the current year of 2025, individuals benefit from a significantly increased estate and gift tax exemption.
2025 tax update

Some Restrictions on Well-Known Tax Deductions End After 2025.

  1. In compliance with current regulations, there are limitations on the tax deductibility of home mortgage interest can be tax deducted on up to $750,000, which is less than what was previously.
  2. Incorporated within Schedule A are various tax deductions that fall under the 2%-of-AGI threshold. The recent legislation of 2017 has removed this particular group of itemized deductions up to the year 2025. Among these are costs such as unreimbursed employee expenditures (covering travel, meals, education, etc.), fees associated with brokerages and IRAs, hobby-related expenses, and fees linked to tax return preparation.
  3. In the tax year 2025, individuals may claim tax deductions for theft and casualty losses from only the federally declared disaster area eligible for the tax deduction.
  4. In the upcoming year of 2025, two significant tax provisions set to expire were not present in the laws of 2017. One of these changes is the widening of eligibility for the Obamacare health premium credit, benefiting more individuals purchasing insurance through a marketplace. 

Additionally, the exemption from federal income tax on most student loan debt forgiven between 2021 and 2025 stands out as a departure from the usual tax treatment of canceled debts. Find your dedicated RapidTax Tax Professional to walk you through these new 2025 tax updated and provisions from start to finish.

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Should I Get a Tax Refund Advance Loan?

Exploring the option of a tax refund advance loan? Weigh the advantages and disadvantages of obtaining a tax refund advance loan. Rapid Tax provides the opportunity to secure a quick tax refund advance by utilizing certain tax preparation services. While many tax preparation firms may not offer the full expected refund amount to prevent issues during IRS review, Rapid Tax fast refund advance loans facilitate accessing your tax refund funds quicker with minimal or zero charges.

Pros

Access some of your federal tax refund money quickly and affordably.

When opting for certain options, there is a possibility of enjoying a 0% interest rate along with low fees to pay.

Easily manage your finances without any hassle by effortlessly handling your funds. Simply submit your tax return to initiate automatic repayment of your loan when your tax refund is processed.

Prevent potential delays from the IRS. It’s important to take certain precautions. While the majority of tax refunds are typically processed within three weeks of submission, there is always a chance for hold-ups, particularly if you have applied for the earned income tax credit or the additional child tax credit.

refund advance loan

Cons

It’s important to note that obtaining a tax refund advance loan may not be possible for everyone. While tax refund advances typically have a good approval rate, there is no absolute guarantee of approval. If you decide to hire a tax professional specifically for a tax refund advance loan, you could end up feeling let down and out of pocket due to the costs associated with tax preparation.

Should you find yourself with an unwanted account, it might not disappear on its own. After receiving tax advance loan funds into a checking account, remember that the account may linger even after your tax refund is depleted. To close the account after your loan is settled, take proactive steps to close it once your refund is issued.

There is a possibility of facing the consequence of overspending when it comes to tax refunds. It’s important to be prepared for the situation where your actual refund amount ends up being lower than initially anticipated. Should this occur, there may be a need to return the discrepancy between the amount you received and the sum the IRS disbursed.

Can I Still Get a Loan on My Tax Refund Even After I Have Already Filed My Taxes?

When looking to participate in tax refund advance programs, the first step usually involves submitting an application for the loan at the time of electronically filing your taxes with Rapid Tax. 

Individuals who have already submitted their tax return directly to the IRS may find themselves ineligible for these programs due to not meeting the necessary criteria.

To maximize your chances of receiving a tax refund advance loan, it is advisable to select a file with Rapid Tax dedicated Tax Professional at the beginning of the season. These advance options are typically offered during the months of January or February, emphasizing the importance of early action.

To Summarize

Receiving a tax refund advance loan is a convenient and cost-effective way to early access your refund sooner than expected. If you had already budgeted for preparation expenses, opting for a refund advance poses minimal risks and allows for quicker access to your tax refund.

Timing is crucial when it comes to filing your taxes. Failure to act promptly or neglecting to request an advance could mean waiting until the following year to seize the opportunity.

Consider utilizing your tax refund to reduce your debt and optimize your finances. Consult with your assigned Rapid Tax dedicated tax Professional to determine the best approach for allocating extra funds towards paying down debts.

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Can I Get a Fast Loan on My Tax Refund Advance?

Upon completing your electronic tax filing with Rapid Tax you have the opportunity to receive a fast tax refund advance loan. This tax refund advance loan carries a 0% APR and with some fees. Applying for it will not affect your credit score. If your tax return is accepted promptly, you might access the funds on the same day. The loan amount is automatically deducted from your refund once it’s received.

When you find yourself eagerly awaiting your federal tax refund, a tax refund advance loan can be a lifesaver. Look no further than Rapid Tax for a complimentary fast tax refund advance, which is one of our comprehensive service offerings. By opting for a tax refund loan, you can swiftly access your funds and conveniently repay the loan once your refund is deposited.

When utilizing specific tax preparation services, individuals have the option to request an advance on their tax refund. While not all tax preparation companies offer advances for the full expected refund amount to account for potential discrepancies during IRS review, these advances provide the benefit of accessing funds sooner without significant costs. Let’s delve deeper into the mechanics behind tax refund advances.

Eligibility for Fast Tax Refund Advance Loan:

  • I am 18 or older
  • I expected the federal tax refund amount to be $500 or more
  • I am not a resident of North Carolina, Connecticut, or Illinois
  • I am e-filing my federal tax return with Rapid Tax
  • I am not filing on behalf of a deceased taxpayer
  • I am reporting income or incomes on a Form W-2, 1099-R, or Schedule C
Tax Refund Advance

What Is a Fast Tax Refund Advance Loan?

Receiving a fast tax refund advance loan means you can access part of your federal tax refund early by filing your taxes electronically through a tax preparation company that provides these advance loans. These loans often come without fees and have a 0% annual percentage rate (APR). You can often receive the funds on the very day the IRS accepts your electronically filed tax return.

At Rapid Tax, quick tax refund advances are offered to eligible clients. Your tax return and credit are evaluated by the financial institution, usually with a gentle credit check that has no impact on your credit score. While there is a chance of not qualifying for an advance, the approval rate remains high.

How Can I Get a Fast Tax Refund Loan?

Commence your tax filing process by reaching out to our Rapid Tax dedicated tax professional for fast refund advance loans. It’s advisable to evaluate multiple alternatives to ensure you select the tax refund loan that suits your requirements. 

How Much Does a Fast Refund Advance Cost?

While this type of loans usually come without any interest or fees, it’s important to be aware of potential costs and restrictions that could be linked to your loan.

Service Fees from Tax Preparation

Considering tax preparation fees is essential when deciding how to file your taxes. Opting to engage a tax preparation service for a refund advance, rather than filing for free independently, adds an extra cost. It is common for companies to mandate the use of more advanced services in order to qualify for the loan, as opposed to utilizing free or budget-friendly online options.

Unpaid Loan or Debt Balances:

Outstanding debts. Should your refund fall short of covering your existing loan, you may be left with an unpaid balance that will require payment. This situation may arise if the IRS rejects a deduction, resulting in a reduced refund amount.