Tax refund advances come from tax preparation companies and some banks, not from the IRS
A tax refund advance is a short-term loan that a tax preparation company or bank gives you based on the refund they expect you to receive from the IRS. The lender gives you the money before the IRS processes your actual tax return — usually within one to three business days. You repay the loan when your refund arrives, and the lender takes their fee from that refund.
The IRS itself does not offer these advances. They come from private companies that have decided to offer them as a service to people filing taxes. Some of these companies are well-known tax preparation chains; others are smaller lenders that partner with tax preparation software or tax preparers.
These advances are not the same as a tax refund. You are borrowing money against a refund you have not yet received. The lender charges a fee for this service, which reduces the amount you ultimately take home.
Key Takeaways
- Tax refund advances are loans from private companies, not government programs, and the IRS does not offer them.
- Major tax preparation chains like H&R Block, Jackson Hewitt, and Liberty Tax offer refund advances, as do some online tax software providers and banks.
- The lender charges a fee — typically $15 to $50 — that comes out of your refund when it arrives.
- You receive the advance within one to three business days if you meet the lender's requirements, which usually include a valid ID and proof of income.
- Refund advances are available only if you are filing a tax return and expecting a refund large enough to cover the loan and the fee.
Tax preparation chains that offer refund advances
The largest tax preparation companies in the United States offer refund advances as part of their service. H&R Block offers a product called the Refund Advance Loan, which you can receive the same day you file if you file in person at an H&R Block office. Jackson Hewitt offers the Rapid Refund, and Liberty Tax offers the Liberty Tax Refund Advance. Each of these companies charges a fee that varies by location and the size of your advance.
These companies typically require you to file your tax return with them in order to receive an advance. Some allow you to file online and still receive the advance, though the timeline may be longer. You will need to bring a valid government-issued ID, proof of income (such as a recent pay stub), and your Social Security number or ITIN.
The fee structure differs slightly between companies. Some charge a flat fee; others charge a percentage of the advance amount. The fee is deducted from your refund when it arrives, so you do not pay it out of pocket upfront.
Banks and credit unions offering refund advances
Some banks and credit unions offer tax refund advances to their customers. Chime, an online bank, offers a SpotMe Boost feature that can advance part of your refund. Navy Federal Credit Union and other credit unions have offered refund advances to members, though availability varies by institution and changes from year to year.
If you have a checking or savings account with a bank or credit union, ask whether they offer refund advances. The terms and fees will be different from those of tax preparation companies. Some banks charge no fee if you are a member in good standing; others charge a small fee similar to what tax preparation companies charge.
Bank refund advances often require that you file your taxes through a partner tax preparation service or software, or that you provide the bank with documentation of your expected refund. The bank will verify your refund status with the IRS before releasing the money.
Online tax software providers with refund advance options
TurboTax, TaxAct, and other online tax software providers partner with lenders to offer refund advances to users. These advances are typically available only if you purchase the software's premium or deluxe version, not the free version. The lender is usually a third-party company, not the software provider itself.
When you file through one of these platforms, you will see the refund advance option during the filing process if you are found to be may be able to access. may be able to access depends on the lender's requirements, which usually include a minimum refund amount and a valid ID. The fee is disclosed before you accept the advance.
The timeline for receiving the advance varies. Some lenders deposit the money within one business day; others take two to three business days. You will receive a confirmation email with the exact deposit date.
What you need to may have access to for a refund advance
Most lenders require the same basic documents and information. You will need a valid government-issued photo ID (such as a driver's license or passport), proof of income from the past year (usually a recent pay stub or W-2), and your Social Security number or ITIN. If you are self-employed, you may need to provide additional documentation such as a profit-and-loss statement.
You must be expecting a refund of a certain minimum amount — usually at least $300 to $500, though this varies by lender. The lender will estimate your refund based on the information in your tax return and will only advance up to a percentage of that estimate, typically 50 to 80 percent.
You must also have a valid bank account in your name where the lender can deposit the advance. Some lenders require that the bank account be at a specific bank or type of institution; others accept accounts at any bank.
How fees work and what they cost you
Refund advance fees range from about $15 to $50, depending on the lender and the size of your advance. Some lenders charge a flat fee; others charge a percentage of the advance amount, typically 1 to 3 percent. A few lenders charge based on how quickly you want the money — a same-day advance costs more than a three-day advance.
The fee is not paid upfront. Instead, when your refund arrives at the IRS and is processed, the lender takes their fee from that refund before sending you the remainder. This means the fee reduces the amount of money you ultimately receive, but you do not have to pay it separately.
Before you accept a refund advance, the lender must disclose the fee in writing. Read this disclosure carefully and calculate what you will actually receive after the fee is deducted. If the fee is high relative to your refund, a refund advance may not be worth it.
Alternatives to refund advances
If you need money before your refund arrives, a refund advance is one option, but it is not the only one. You can file your tax return for free using IRS Free File, which is available at IRS.gov, and then wait for your refund to be deposited directly into your bank account. The IRS typically processes refunds within 21 days of receiving your return.
If you need money sooner, a personal loan from a bank or credit union may have a lower fee than a refund advance, depending on your credit history and the loan terms. A credit card cash advance is another option, though it usually carries a higher interest rate than a personal loan.
Some employers offer paycheck advances or emergency loans to employees. If you are in a financial emergency, ask your employer's human resources or payroll department whether this is an option.
Frequently Asked Questions
Can I get a refund advance if I file my taxes myself without a tax preparation company?
Yes, if you file through online tax software that partners with a lender, or if you have a bank account with a bank that offers refund advances. You cannot get a refund advance directly from the IRS. Some lenders will advance money based on your tax return even if you file it yourself, as long as you provide them with a copy of the return and the required identification documents.
What happens if the IRS rejects my tax return or my refund is smaller than expected?
You are still responsible for repaying the full advance amount plus the fee. If your refund is smaller than the advance, the lender will take the entire refund and you will owe the difference. If the IRS rejects your return, you will owe the full advance amount when ready. This is why it is important to make sure your return is accurate before accepting an advance.
How long does it take to receive a refund advance?
Most lenders deposit the advance within one to three business days of approval. Same-day advances are available from some tax preparation companies if you file in person at their office. Online advances typically take longer because the lender needs time to verify your information with the IRS.
Is there a difference between a refund advance and a refund anticipation loan?
These terms are often used interchangeably, but a refund anticipation loan is technically a loan secured by your expected refund, while a refund advance is money given to you before your refund is verified. In practice, most lenders use these terms to mean the same thing — a short-term loan based on your expected refund.
Can I get a refund advance if I owe back taxes or child support?
It depends on the lender's policy. Some lenders will not advance money if you have outstanding tax debt or child support obligations, because the IRS or state agency can intercept your refund to pay these debts. Other lenders will advance the money but require you to sign an agreement acknowledging this risk. Ask the lender directly before you explore.