Banks offer a type of credit to account holders who have filed their Income Tax (IR) and wish to receive their refund before the deadline. To access this option and receive their Income Tax refund in advance, the account holder must pay interest and the Tax on Financial Transactions (IOF). But is it worth it?
As a rule, banks only make advance payments available to account holders who have chosen to receive the refund in their current accounts. The interest rate linked to the amount will vary according to the financial institution chosen by the person.
One attractive feature of this option is that it allows the person to receive 100% of the amount that will be refunded. In most cases, when the account holder receives the refund deposited into their account, the debt is automatically paid off.
Income Tax Refund Calendar 2023
The Income Tax refund period is eagerly awaited by taxpayers. To help account holders organize their tax return, the Federal Revenue Service has already announced that all individuals who managed to submit their tax return by May 10 have a greater chance of receiving their refund in the first batch, which will be paid at the end of May.
With the declaration in days, just pay attention to the calendar dates for the return of the values, check:
- 1st batch: May 31, 2023
- 2nd batch: June 30, 2023
- 3rd batch: July 31, 2023
- 4th batch: August 31, 2023
- 5th batch: September 29, 2023
Is it worth paying the refund in advance?
But how do you know if it’s really worth it to get your income tax refund early? Since the loan generates additional costs for the taxpayer, it’s necessary to weigh up the real need to have access to the amount sooner.
One point to consider is that, if the amount received exceeds – considerably – the amount of interest and IOF, it may be worth withdrawing the money early, for example.
However, it is worth thinking about. Because, if the account holder falls into the fine mesh, he will still have to pay the loan contract, in addition to the necessary adjustments so that his situation is regularized.
Furthermore, the interest rates that banks provide are nominal, so the total cost of withdrawing the amount may be higher than expected. Therefore, it is important to pay attention to the Total Effective Cost (CET) of the operation in the contract.
Generally, the most prudent position is to avoid taking out a loan early for consumption or any other situation that could be postponed.
