TaxAct does not offer refund advances directly, but it does partner with third-party lenders who do

TaxAct is a tax preparation software company, not a lender. When you file through TaxAct, you will not see a refund advance product built into their platform the way some other tax software companies offer. However, TaxAct has partnered with LendingClub, a third-party lender, to make refund advances available to TaxAct users who want one.

This matters because it changes how you get the loan and who you owe money to. You are not borrowing from TaxAct—you are borrowing from LendingClub, which is a separate financial company. TaxAct is simply the middleman connecting you to the lender. The terms, interest rate, and repayment schedule come from LendingClub, not from TaxAct.

If you use TaxAct to file your return and want a refund advance, you will see the LendingClub offer during the filing process or after you have completed your return. You can choose to accept or decline it at that point.

Key Takeaways

  • TaxAct partners with LendingClub to offer refund advances, but the loan itself comes from LendingClub, not TaxAct.
  • The offer appears during or after you file your return through TaxAct, and you can accept or turn it down.
  • LendingClub sets the interest rate and fees, which vary based on your creditworthiness and the loan amount.
  • You will repay the advance from your tax refund when it arrives, and any remaining balance goes to you.
  • If you decline the LendingClub offer, you can still file your return through TaxAct and receive your refund through normal IRS channels.

How the LendingClub refund advance works through TaxAct

When you reach the point in TaxAct where you can choose your refund delivery method, you will see an option to borrow against your expected refund. If you select it, LendingClub will review your information—your filing status, expected refund amount, and basic financial details—to decide whether to offer you a loan and at what rate.

LendingClub typically funds the loan within one to two business days if you are approved. The money goes directly to your bank account, not to TaxAct. You then have access to your refund before the IRS processes your return, which normally takes 21 days or longer depending on the method you chose to file.

When your actual tax refund arrives from the IRS, it is directed to LendingClub first. LendingClub takes the loan amount plus interest and fees out of that refund, then sends you whatever is left. If your refund is smaller than expected, you may owe LendingClub money out of pocket.

Interest rates and fees LendingClub charges

LendingClub does not publish a single interest rate for refund advances. The rate depends on your credit score, income, debt-to-income ratio, and the loan amount. Rates can range from roughly 6% to 36% annually, though refund advances are typically on the lower end because the loan is secured by your tax refund.

In addition to interest, LendingClub may charge an origination fee (usually 1% to 6% of the loan amount) and a prepayment penalty if you pay off the loan early. Some refund advance products charge a flat fee instead of interest. You will see the exact rate, fees, and total cost before you accept the loan—do not proceed if the terms are not clear.

Because LendingClub is a third-party lender and not part of TaxAct's tax preparation service, the cost of the advance is separate from any fees TaxAct charges for preparing your return. TaxAct's filing fees and LendingClub's loan costs are two different bills.

When a refund advance through TaxAct makes sense

A refund advance is useful if you need money before the IRS sends your refund and you cannot wait three to four weeks. The trade-off is that you pay interest and fees to get that money early. If you can wait for your refund to arrive through normal channels, you will save money by skipping the advance.

The math is straightforward: if you are expecting a $2,000 refund and LendingClub charges you $150 in interest and fees to get that $2,000 in two days instead of waiting 21 days, you are paying $150 for 19 days of early access. Whether that is worth it depends on your situation—if you have an urgent bill or expense, it might be. If you are just impatient, it probably is not.

Refund advances also make sense if you have poor credit and cannot borrow money any other way. LendingClub's rates are often better than payday lenders or credit card cash advances, and the loan is may provide to be repaid from your refund.

Alternatives to TaxAct's refund advance option

Other tax software companies offer refund advances directly through their platforms. TurboTax offers a product called the Refund Advance, and H&R Block offers the Refund Advance Loan. These work similarly to the LendingClub product through TaxAct—you borrow against your expected refund and repay it when the IRS sends your money—but the lender and terms vary by company.

If you do not want a refund advance at all, you can file through TaxAct without taking one. Simply decline the LendingClub offer during the filing process. Your return will be filed normally, and your refund will be deposited to your bank account or sent by check according to the method you chose.

You can also file your taxes for free through the IRS Free File program if your income is below a certain threshold, which eliminates TaxAct's filing fees entirely. That option does not include a refund advance, but it saves you money upfront.

What happens if your refund is smaller than the advance

If you borrow $1,500 through LendingClub but your actual tax refund turns out to be only $1,200, you will owe LendingClub $300 plus any remaining interest or fees. LendingClub will contact you about payment options, which may include setting up a payment plan or charging your bank account.

This is a real risk with refund advances. Your expected refund is an estimate based on the information you provided when you filed. If you made a mistake on your return, received unexpected income, or had a major life change, your actual refund could be much smaller than you thought. Before you take a refund advance, make sure your estimated refund is accurate.

How to decline the LendingClub offer and file through TaxAct anyway

You do not have to take the refund advance to use TaxAct. When the LendingClub offer appears during your filing process, you can simply select "No" or "Decline" and continue. Your return will be filed through TaxAct as normal, and you will receive your refund through the IRS on the timeline you chose (direct deposit, check, or other method).

Declining the advance does not affect your tax return or your refund amount. It only means you are not borrowing money against it. Your refund will arrive on its normal schedule, which is usually 21 days for direct deposit or longer for a check.

Frequently Asked Questions

Can I use TaxAct to file my return without taking a refund advance?

Yes. The LendingClub refund advance is optional. You can decline it during the filing process and file your return normally through TaxAct. Your refund will arrive through the IRS on the standard timeline without any loan involved.

What credit score do I need to be approved for the LendingClub refund advance?

LendingClub does not publish a minimum credit score requirement for refund advances. The company reviews your overall financial profile, including credit history, income, and debt. You may be approved even with fair or poor credit, but your interest rate will be higher.

How long does it take to get the money from a LendingClub refund advance?

LendingClub typically funds approved loans within one to two business days. The money is deposited directly to your bank account. Your actual tax refund from the IRS takes longer—usually 21 days for direct deposit.

What if I want to pay back the refund advance early?

You can pay back the loan early, but LendingClub may charge a prepayment penalty depending on the terms of your specific loan. Check your loan agreement before you accept the advance to see whether early repayment costs extra.

Is the LendingClub refund advance the same as TaxAct's refund advance?

TaxAct does not have its own refund advance product. LendingClub is the lender, and TaxAct is the platform where you see the offer. The loan comes from LendingClub, and LendingClub sets the terms, rates, and fees.