TaxAct does not offer refund advance loans directly, but you can get one through a partner lender while using TaxAct to file your return
TaxAct is a tax preparation software, not a lender. The company does not issue refund advance loans itself. However, TaxAct has partnered with third-party lenders who can offer you a refund advance while you prepare your return through their platform. This means you can file with TaxAct and pursue a refund advance loan through the same process, but the money comes from the lender, not from TaxAct.
The refund advance loan is a separate product from the tax filing service. You will see the option during the filing process, usually near the end when TaxAct asks how you want to receive your refund. If you choose the refund advance route, TaxAct passes your information to the lender, who then decides whether to offer you the loan and on what terms.
Key Takeaways
- TaxAct partners with lenders to offer refund advance loans, but does not lend the money itself.
- You can see refund advance options while filing your return through TaxAct, usually in the final steps before submission.
- The lender, not TaxAct, sets the loan amount, fees, and approval decision based on your expected refund.
- TaxAct's role is to connect you to the lender and provide your return information; the lender handles the actual loan.
How the refund advance works when you file with TaxAct
During the TaxAct filing process, you will reach a step that asks how you want to receive your refund. At that point, TaxAct typically displays options for refund advance loans from its partner lenders. You can choose to pursue a loan, decline it, or select direct deposit to your bank account instead.
If you choose the refund advance option, TaxAct will ask for additional information the lender needs: your bank account details, income verification, and permission to share your tax return data with the lender. TaxAct then transmits this information to the lender's system. The lender reviews your expected refund amount and decides whether to offer you a loan and for how much.
The lender typically deposits the loan funds into your bank account within one to three business days if you are approved. Your actual tax refund, when the IRS processes it, goes to the lender first to repay the loan amount plus fees. Any remaining refund balance goes to you.
What TaxAct charges versus what the lender charges
TaxAct's own fees for filing your return are separate from the refund advance loan fees. TaxAct charges for tax preparation and e-filing (prices vary by return complexity, typically $60 to $120 for federal returns). Some TaxAct plans include free state filing; others charge extra.
The refund advance loan itself has fees set by the lender, not TaxAct. These fees vary by lender and loan amount but typically range from $15 to $50 or more. Some lenders charge a flat fee; others charge a percentage of the loan. The lender will disclose the exact fee before you accept the loan. TaxAct does not receive a cut of the loan fee, though it may receive a referral payment from the lender for sending customers their way.
You will pay both the TaxAct filing fee and the lender's loan fee if you use both services. Neither is waived by using the other.
When a refund advance through TaxAct makes sense
A refund advance loan through TaxAct is useful if you need cash before the IRS processes your return and you have already decided to file with TaxAct. The loan arrives in days rather than weeks, which matters if you have an urgent expense or bill due before your refund would normally arrive.
The trade-off is the loan fee. If your refund is small (under $500), the fee may consume a meaningful portion of what you receive. If your refund is large, the fee is a smaller percentage of your total, making the loan more cost-effective. You should compare the lender's fee against the cost of other short-term borrowing options—a credit card cash advance, a payday loan, or a personal loan from your bank—to see which is cheapest for your situation.
A refund advance also makes sense if you do not have a bank account yet but need to set one up to receive the loan. Some lenders will help you open a basic account as part of the loan process, which then becomes your ongoing account for future refunds and direct deposits.
Alternatives if you want a refund advance but do not want to use TaxAct
If you prefer to file your taxes with a different software or a tax professional, you can still get a refund advance loan from a lender that works independently of your tax filing method. Many banks, credit unions, and standalone lenders offer refund advance loans to anyone with a recent tax return or a filed return in progress.
You would file your taxes separately (with another software, a CPA, or a tax preparation chain like H&R Block or Jackson Hewitt), then contact a lender directly to request a refund advance. The lender will ask for a copy of your filed return or your filing confirmation to verify the expected refund amount. This route takes slightly longer because you are coordinating two separate processes, but it gives you more control over which lender you work with.
Some credit unions offer refund advances to members at lower fees than commercial lenders. If you belong to a credit union, call and ask whether they offer this product before committing to a third-party lender.
What happens if your refund is smaller than expected
If the IRS processes your return and your actual refund is smaller than the lender estimated, you still owe the full loan amount plus fees. The lender takes what the IRS sends, and you are responsible for the difference. For example, if the lender gave you a $1,500 loan based on an estimated $1,600 refund, but your actual refund is $1,400, the lender takes the $1,400, and you owe the lender $100 plus the loan fee out of pocket.
This is why the lender asks for documentation of your income and withholdings before approving the loan—they are trying to estimate your refund as accurately as possible. But estimates can be wrong if you made an error on your return, claimed deductions you were not may have access to to, or had a major life change (marriage, job loss, additional income) that affected your tax situation.
Before accepting a refund advance loan, review your return carefully to make sure your estimated refund is realistic. If you are unsure, ask the lender what happens if your actual refund is lower, and get that answer in writing.
Frequently Asked Questions
Can I get a refund advance loan through TaxAct if I have bad credit?
TaxAct's partner lenders vary in their credit requirements. Some lenders focus on refund amount rather than credit score, while others do check credit. You will not know whether you may have access to until you provide your information during the filing process. The lender will tell you their decision before you accept the loan.
What if I change my mind about the refund advance after I accept it?
Most lenders have a short window (usually one to three business days) to cancel the loan after you accept it. Check the loan agreement for the cancellation important date and process. Once that window closes or the lender deposits the funds, you are locked into repaying the loan from your refund.
Does using a refund advance loan affect my tax return or my refund amount?
No. The loan is a separate financial transaction. Your tax return is filed the same way whether you take the loan or not, and your refund amount is determined by the IRS based on your return, not by the lender. The loan straightforward gives you access to that refund early.
Can I use TaxAct to file my return and get a refund advance from a different lender?
Yes. You can file with TaxAct and decline the refund advance option, then contact a different lender separately with a copy of your filed return. This takes more time to coordinate but lets you shop around for the best loan terms.
What if TaxAct's partner lender denies me for a refund advance?
If the lender declines, you can still file your return with TaxAct and receive your refund by direct deposit or check on the normal IRS timeline (typically 5 to 21 business days). You can also contact other lenders directly to see if they will offer you a loan based on your filed return.