TurboTax does not offer a refund advance directly, but it partners with banks that do
TurboTax itself does not lend you money against your expected tax refund. However, TurboTax has partnered with certain banks and financial institutions that offer refund advances — loans you repay from your refund when it arrives. These are separate products from TurboTax's tax preparation service, and whether you can use one depends on which bank TurboTax is working with in your state that year.
A refund advance is a short-term loan, typically for a few hundred dollars, that you receive within days rather than waiting for the IRS to process your return. The bank deducts the loan amount plus fees from your refund when it arrives. You do not repay the bank separately — the money comes directly out of your refund deposit.
The availability and terms of these advances change year to year based on which banks participate and which states they operate in. If you are interested in a refund advance while using TurboTax, you will see the option during the filing process if your state and situation may have access to.
Key Takeaways
- TurboTax partners with banks to offer refund advances, but TurboTax does not provide the loan itself.
- A refund advance is a short-term loan that the bank repays itself from your tax refund, so you do not make a separate payment.
- Refund advances come with fees that reduce the amount you ultimately receive, and the cost varies by lender and state.
- Not all states and situations may have access to for a refund advance in any given year, and availability depends on which banks are participating.
How a refund advance works when you file with TurboTax
If a refund advance is available to you, TurboTax will show the option during the filing process, usually near the end when you are reviewing your return. You will see the bank's name, the loan amount they are willing to offer, the fee, and how quickly you would receive the money.
If you choose to proceed, you authorize the bank to deduct the loan and fees from your refund. The bank deposits the advance into your bank account within one to three business days. When the IRS processes your return and sends your refund, the bank takes its loan amount and fees first, and you receive what remains.
For example, if your refund is expected to be $2,000 and the bank offers a $1,500 advance with a $89 fee, you would receive $1,500 when ready. When your refund arrives, the bank deducts $1,589 ($1,500 loan plus $89 fee), leaving you with $411 from your original refund.
What the fees and terms typically look like
Refund advance fees are not interest charges — they are flat fees set by the bank. These fees vary depending on the lender and your state, and they typically range from around $50 to $150 or more. The exact fee is shown to you before you agree to the advance, so you know the cost upfront.
The loan amount is usually less than your expected refund. Banks typically offer advances of $500 to $2,500, though the actual amount depends on your estimated refund size and the lender's policies. You cannot borrow more than the refund you are expecting to receive.
The timeline is the main advantage: you receive the advance within days instead of waiting weeks or months for the IRS to process your return. However, you are paying a fee for that speed, and the fee reduces your net refund.
When a refund advance might not be available
Refund advances are not available in every state every year. The banks that offer them change their participation based on business decisions and state regulations. Some states have restrictions on refund advances or do not allow them at all.
Your personal situation also affects availability. If your return is flagged for review by the IRS, if you claim certain credits, or if your income is above a certain threshold, you may not be offered an advance. The bank assesses the risk that your refund might be delayed or reduced, and they decline advances they consider too risky.
If no advance is available when you file, TurboTax will not show the option. You will straightforward proceed with filing your return normally and wait for your refund through the standard IRS process.
Refund advances versus other ways to get money faster
A refund advance is one option, but it is not the only way to access your refund sooner. Some people choose to wait for direct deposit, which is free and typically arrives within 21 days of the IRS accepting the return. Others use a refund anticipation loan, which is similar to a refund advance but structured differently and may have different terms.
If you need money when ready and do not want to pay a refund advance fee, you might consider a personal loan from a bank or credit union, a credit card advance, or borrowing from family. These have their own costs and terms, so compare them against the refund advance fee to see what makes sense for your situation.
Direct deposit is always free and the fastest way to receive your refund without paying a fee. If you can wait the extra week or two, that is the lowest-cost option.
How to decide whether a refund advance makes sense for you
A refund advance makes sense only if you need the money urgently and the fee is worth the cost to you. If you can wait for your refund to arrive through normal processing, you save the fee entirely.
Calculate the real cost: if the advance fee is $89 and you would receive the money five days earlier instead of waiting three weeks, is that worth $89 to you? For some people facing an urgent bill or expense, the answer is yes. For others, it is not.
Also consider whether you are certain about your refund amount. If there is any chance the IRS will adjust your return or if you are unsure whether you will actually receive the full amount you are expecting, a refund advance adds risk — you could owe the bank money if your actual refund is smaller than expected.
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, there is no refund for the bank to repay itself from, so the advance is not an option.
What happens if my refund is smaller than expected?
You are still responsible for repaying the bank the full loan amount plus fees. If your actual refund is smaller than the advance, you will owe the difference. The bank deducts what it can from your refund and may pursue you for the remaining balance.
Do I have to use a refund advance if TurboTax offers it?
No. The option is shown to you, but you can decline it and file your return normally. You will receive your refund through standard IRS processing without paying any advance fee.
How long does it take to receive the advance money?
Most banks deposit refund advances within one to three business days of approval. The exact timeline depends on the lender and your bank's processing speed. You will see the expected deposit date before you agree to the advance.
Can I get a refund advance from TurboTax if I file with a different tax software?
No. Refund advances through TurboTax's partnerships are only available when you file through TurboTax. Other tax software may have partnerships with different lenders, but the availability and terms will differ.