What Is a Tax Refund Advance Loan?

A tax refund advance loan provides you with a portion of your federal tax refund when you e-file your tax return with a tax preparation service that offers these loans. These loans are generally fee-free with a 0% annual percentage rate (APR) and can often be funded on the same day your e-filed return is accepted by the IRS.

How to Get a Tax Refund Loan

To get a tax refund advance loan, start by finding a tax preparation service that offers these loans. Compare different options to ensure you get the best fit for your needs. Here’s how refund advance loans work at three popular tax preparation firms:

H&R Block

• Request a refund advance loan when you e-file your taxes with one of H&R Block’s tax pros.
• Apply for a refund advance of $250, $500, $750, $1,250, or $3,500, depending on the size of your refund.
• Pay $0 in loan fees and 0% APR on your loan.
• Receive loan funds via the Spruce mobile banking app or an Emerald prepaid debit card.

Jackson Hewitt

• Tax refund advances are available at most Jackson Hewitt locations nationwide.
• Apply for a refund advance of $250, $500, $750, $1,000, $1,500, $2,500, $3,500, $4,500, or $6,500, based on your qualifying estimated refund.
• Pay $0 in loan fees and 0% APR on your loan.
• Receive your refund advance on a prepaid Serve American Express card or direct deposit to your bank account.

TurboTax

• Apply for a tax refund advance when you’re ready to e-file your return using TurboTax.
• Apply for a loan of up to 50% of your federal tax refund.
• Pay $0 in loan fees and 0% APR on your loan.
• Receive your advance minutes after the IRS accepts your e-filed return in many cases.

How Much Does a Tax Refund Advance Cost?

Although refund advance loans are typically zero interest and fee-free, there are a few costs and limitations to consider:

• Tax preparation fees: If you were planning to do your own taxes for free, paying a tax preparation company to apply for a refund advance is an added expense.
• Prepaid card fees: A prepaid card gives you immediate access to your funds, but these often come with minor fees for usage.
• Unpaid balances: If your refund doesn’t cover your outstanding loan, you’ll have an outstanding balance that may be due and payable.

Is It a Good Idea to Get a Tax Refund Loan?

Consider the pros and cons of getting a tax refund advance loan:

Pros

• A tax refund advance is a low-cost way to get a portion of your federal tax refund money fast.
• You’ll pay 0% interest and $0 in fees.
• Receive and repay your money with almost no effort.
• Avoid IRS delays.

Cons

• You may not qualify for the loan.
• You may end up with an account you don’t want.
• You run the risk of overspending.

Can I Get a Loan on My Tax Refund if I Already Filed?

Refund advance programs typically require you to apply for your loan when you e-file your taxes with the help of the tax prep company. If you’ve already filed your return with the IRS, you’re no longer eligible to meet these requirements.

The Bottom Line

A tax refund advance loan can be an easy low- or no-cost option that lets you start using your tax refund sooner. If you were already planning to pay for tax prep, there’s little downside to getting a refund advance. Just make sure your timing is right: If you wait too late into the tax season or file your return without requesting an advance, you may miss the opportunity until next year.

The fastest and safest way to receive your tax refund is through IRS direct deposit to a bank account. If you don’t have a checking account, consider the Experian Smart Money™ Digital Checking Account & Debit Card, which can help you build credit without debt by linking to Experian Boost®ø. Start building credit with eligible bill payments after three months of payments. See terms at experian.com/legal.

Using your tax refund to pay down debt is one way to make the most of your money. Check your Experian credit report to help figure out where additional debt payments might be most helpful. If you’re looking for alternatives to a refund advance, you might consider a personal loan or a credit card with a promotional 0% APR.