Jackson Hewitt's Refund Advance Product
Jackson Hewitt does offer a refund advance, which is a short-term loan based on your expected tax refund. The product is called the Refund Advance Loan, and it lets you borrow money before the IRS processes your return and sends your refund. You repay the loan from your refund when it arrives.
This is different from a tax refund itself. Your refund is money the government owes you. A refund advance is money Jackson Hewitt lends you, expecting to be repaid from that refund. The loan comes with a fee, and the amount you can borrow is limited by how much Jackson Hewitt estimates your refund will be.
Not all Jackson Hewitt locations or tax preparers offer this product, and availability can change. If you are interested, ask your tax preparer directly whether refund advances are available at your location.
Key Takeaways
- Jackson Hewitt's Refund Advance Loan is a short-term loan you repay from your tax refund, not a refund itself.
- The loan comes with a fee that reduces the amount of money you actually receive.
- You can only borrow up to what Jackson Hewitt estimates your refund will be, and the estimate may be lower than your actual refund.
- Not all Jackson Hewitt locations offer refund advances, so you will need to ask your tax preparer whether it is available where you file.
- The IRS processes refunds on its own timeline, which means you may wait weeks for your refund to arrive and the loan to be repaid.
How the Refund Advance Loan Works
When you file your taxes with Jackson Hewitt, the tax preparer estimates what your refund will be based on the information in your return. Jackson Hewitt then offers to lend you a portion of that estimated amount right away, usually the same day or within a few business days. You sign a loan agreement that spells out the fee and the repayment terms.
Once you receive the loan, Jackson Hewitt files your tax return with the IRS. The IRS then processes your return on its own schedule, which typically takes 21 days or longer depending on the complexity of your return and current processing times. When the IRS approves your refund and sends it, Jackson Hewitt receives the money and uses it to repay itself from the loan, then sends you any remaining balance.
The fee for the refund advance is separate from the tax preparation fee. Both fees are deducted from your refund or your loan proceeds, which means you receive less money than your actual refund amount.
Fees and What They Cost You
Jackson Hewitt charges a fee for the refund advance loan, but the exact amount varies. Fees depend on the size of the loan, your location, and current promotions. Some locations may advertise lower or promotional fees during tax season, while others charge a flat rate. You should ask your tax preparer for the specific fee before you agree to the loan.
The fee is typically deducted from the loan amount you receive, so if you borrow $500 and the fee is $50, you receive $450. This is in addition to any tax preparation fees Jackson Hewitt charges for preparing your return. Both fees reduce the amount of money you walk away with.
Because fees vary by location and change throughout the tax season, there is no single fee amount to quote here. Always ask for the fee in writing before you sign the loan agreement, so you know exactly what you are paying.
When a Refund Advance Makes Sense
A refund advance can be useful if you need money urgently and cannot wait for the IRS to process your return. If you have an unexpected expense, overdue bills, or a time-sensitive need, borrowing against your refund lets you access that money within days instead of weeks.
However, the loan costs you money in fees. If you can wait for your refund without borrowing, you will keep more of your money. The longer you can wait, the less sense it makes to pay a fee to get the money sooner.
A refund advance also only works if you are confident your refund will arrive. If your return is complicated, the IRS may need more time to process it or may request additional information from you. If that happens, your refund is delayed, and you still owe Jackson Hewitt the loan amount on the agreed date.
Risks and Things to Watch For
One major risk is that your actual refund may be smaller than Jackson Hewitt estimated. If the IRS adjusts your refund downward — for example, because of an error in your return or a debt offset — you may owe Jackson Hewitt more than your actual refund covers. In that case, you would need to pay the difference out of pocket.
Another risk is that the IRS may delay processing your return. If your return is flagged for review, requires verification, or is part of a processing backlog, your refund may not arrive by the date Jackson Hewitt expects. You still owe the loan on the agreed date, even if your refund has not arrived yet.
Read the loan agreement carefully before you sign. Make sure you understand the fee, the repayment date, what happens if your refund is delayed, and what happens if your refund is smaller than expected. If anything is unclear, ask your tax preparer to explain it.
Alternatives to a Refund Advance
If you need money before your refund arrives, you have other options. A personal loan from a bank or credit union may have a lower interest rate than the fee on a refund advance, especially if you have good credit. A credit card advance or a line of credit from your bank are other possibilities, though these also come with costs.
If your need is temporary, you might also ask creditors or service providers whether they can delay a payment or set up a payment plan. Many utilities, medical providers, and other businesses will work with you if you contact them before you fall behind.
If you do not need the money urgently, the simplest option is to wait for your refund. The IRS typically processes most returns within 21 days, and you will keep all of your refund instead of paying a fee.
How to learn about Your Location Offers Refund Advances
Not every Jackson Hewitt office offers refund advances. Availability depends on the individual location, the tax preparer, and sometimes on the time of year. The best way to find out is to call or visit the Jackson Hewitt location where you plan to file and ask directly whether refund advances are available.
When you call or visit, ask for the fee amount and the terms of the loan. Get this information in writing before your appointment, so you can compare it to other options and decide whether a refund advance makes sense for your situation.
If your local Jackson Hewitt does not offer refund advances, other tax preparation services may. H&R Block, Liberty Tax, and some independent tax preparers also offer similar products, though fees and terms vary.
Frequently Asked Questions
Can I get a refund advance if I owe taxes instead of getting a refund?
No. A refund advance is only available if you are expecting a refund. If you owe taxes, Jackson Hewitt can help you file your return and set up a payment plan with the IRS, but a refund advance does not explore to your situation.
What happens if the IRS rejects my return or asks for more information?
If the IRS rejects your return or requests additional documents, your refund will be delayed. You still owe Jackson Hewitt the loan amount on the agreed date, even if your refund has not arrived. Contact Jackson Hewitt when ready if this happens, so you understand your options.
Can I pay back the refund advance early if my refund arrives sooner than expected?
This depends on the terms of your specific loan agreement. Some lenders allow early repayment without penalty, while others do not. Ask your tax preparer about early repayment options before you sign the agreement.
Is the refund advance fee tax deductible?
No. The fee for a refund advance is a loan fee, not a tax-related expense, and it is not deductible on your federal income tax return. It straightforward reduces the amount of money you receive from your refund.
What if my refund is smaller than Jackson Hewitt estimated and I cannot pay the difference?
Contact Jackson Hewitt when ready to discuss your situation. Depending on the loan agreement and your circumstances, you may be able to set up a payment plan or negotiate a resolution. Do not ignore the debt, as it can affect your credit if it goes unpaid.