Tax refund advances come from tax preparation companies and some banks, not from the IRS

The IRS does not offer refund advances. Instead, tax preparation firms like H&R Block, Jackson Hewitt, Liberty Tax, and TurboTax offer loans against your expected refund—usually for a fee between $0 and $200, depending on the lender and loan size. Banks including Chime, LendingClub, and some regional banks also offer refund advance products, though availability and terms vary by state and income level. These are short-term loans that you repay when your actual refund arrives, typically within two to four weeks.

The lender does not wait for the IRS to send your refund to you. Instead, they fund the loan based on your tax return data and your expected refund amount. You receive the money in your bank account or on a prepaid card within one to three business days of approval. When the IRS deposits your refund, it goes to the lender first to repay the loan, and any remainder goes to you.

Key Takeaways

  • Tax preparation companies and banks offer refund advances, not the IRS—these are loans you repay when your actual refund arrives.
  • Fees range from $0 to $200 or more depending on the lender, loan size, and whether you use their tax preparation service.
  • Money typically arrives in one to three business days, but the loan is repaid automatically when the IRS deposits your refund.
  • You can get a refund advance through a tax preparation company's office, their website, or through a bank's app or website.
  • Some lenders require you to file your taxes with them to get a refund advance, while others allow you to bring a return filed elsewhere.

Tax preparation companies that offer refund advances

H&R Block offers the Refund Advance through its offices and online platform. The loan amount depends on your expected refund, and H&R Block charges a fee (which varies) plus interest. You can get the money the same day you file if you visit an office, or within one to three business days if you file online. H&R Block requires you to file your taxes with them to get the advance.

Jackson Hewitt offers the Rapid Refund, available at its offices nationwide. The fee structure varies by location and loan size. You must file your return with Jackson Hewitt to receive the advance. Money is typically available within one business day of approval.

Liberty Tax offers refund advances at its offices. Fees and loan terms vary by location. You file your return with Liberty Tax to receive the advance. Funding typically takes one to two business days after approval.

TurboTax offers the Refund Advance through its online platform. The loan amount is capped at your expected refund minus fees. TurboTax charges a fee for the service. You must file your return with TurboTax to receive the advance, and money arrives within one to three business days.

Banks and financial apps offering refund advances

Chime, a mobile banking app, offers the SpotMe Boost feature, which can advance up to $200 of your tax refund if you have a Chime account and direct deposit set up. There is no fee for this service. You file your taxes through Chime's partner (usually TurboTax) and the advance is deposited to your Chime account within one to three business days.

LendingClub offers personal loans that some borrowers use as refund advances, though the company does not market them specifically as such. Loan amounts and fees vary based on credit score and income. Funding takes one to three business days.

Regional banks and credit unions sometimes offer refund advance products, though availability is limited and varies by institution. Contact your bank directly to ask whether they offer this service. Some require you to be an existing customer; others do not.

Availability of bank-based refund advances changes year to year and by state. Not all lenders operate in all states, and some have paused or discontinued these products. Check the lender's website or call their customer service line to confirm whether the product is currently available in your state.

How to apply for a refund advance

If you are using a tax preparation company, ask about refund advances when you arrive at the office or when you start filing online. The company will explain the fee, the loan amount available to you, and the timeline. You will need to provide your Social Security number, income information, and banking details so the lender can deposit the money and later receive your refund.

If you are using a bank or financial app, log into your account or download the app and look for the refund advance option. You will typically need to connect your tax filing information (either by uploading your return or by authorizing the bank to access it from your tax software). The bank will then calculate your expected refund and offer you a loan amount. Accept the terms, and the money will be deposited within one to three business days.

Do not apply for a refund advance from multiple lenders at once. Each application may trigger a credit check, and multiple inquiries can lower your credit score temporarily. Apply with one lender, receive the money, and if something goes wrong, contact that lender before trying another.

Fees and costs you will pay

Refund advance fees vary widely. Some lenders charge a flat fee ($15 to $50), others charge a percentage of the loan amount (typically 1 to 5 percent), and some charge both a flat fee and interest. A few lenders, like Chime's SpotMe Boost, charge no fee at all, but these are exceptions.

The total cost depends on the loan amount and the lender. A $500 advance might cost $15 to $50 in fees; a $2,000 advance might cost $50 to $200. Always ask the lender for the total fee before you accept the loan. The fee will be deducted from your refund when it arrives, so if your refund is $1,500 and the fee is $75, you will receive $1,425 after the loan is repaid.

Some tax preparation companies bundle the refund advance fee with their tax preparation fee, making the total cost less transparent. Ask them to break down the costs separately so you know exactly what you are paying for the advance itself.

What happens when your refund arrives

When the IRS deposits your refund, it goes directly to the lender's bank account, not to yours. The lender automatically deducts the loan amount plus fees and deposits the remainder to your account. This usually happens within one to three business days of the IRS deposit, though it can take longer if the IRS is processing refunds slowly.

If your actual refund is smaller than the loan amount, you may owe money back to the lender. For example, if you borrowed $1,500 but your actual refund is only $1,200, you will owe $300 plus any fees. The lender will contact you about repayment options, which typically include a payment plan or a deduction from a future refund.

If your actual refund is larger than the loan amount, you receive the difference. For example, if you borrowed $1,000 and your actual refund is $1,500, you receive $500 (minus fees) after the loan is repaid.

Alternatives to refund advances

If you need money before your refund arrives but want to avoid a loan, consider waiting. The IRS typically processes refunds within 21 days of receiving your return, and many arrive within 5 to 10 days. If you file electronically and choose direct deposit, your refund arrives faster than if you request a check.

If you cannot wait, a personal loan from a bank or credit union may have a lower interest rate than a refund advance, depending on your credit score. A credit card cash advance is usually more expensive than both. A short-term loan from an online lender is another option, though fees and interest rates vary widely.

If you are struggling financially and need the money urgently, look into whether you may have access to for other assistance programs—unemployment benefits, food assistance, or emergency aid—that might address your immediate need without requiring a loan.

Frequently Asked Questions

Can I get a refund advance if I have bad credit?

Yes. Most tax preparation companies and some banks offer refund advances without running a credit check or with minimal credit requirements. They base the loan on your expected refund, not your credit score. However, some lenders do check credit, so ask before you apply.

What if the IRS rejects my return or delays my refund?

If the IRS rejects your return, the lender will not receive your refund and you will owe the loan back. Contact the lender immediately to discuss repayment options. If the IRS delays your refund (for example, due to a verification request), the lender may extend the loan deadline, but you will likely owe interest for the extra time. Ask the lender about their policy on delayed refunds before you accept the loan.

Do I have to file my taxes with the same company that gives me the refund advance?

Most tax preparation companies require you to file with them to get a refund advance. Some banks and online lenders allow you to upload a return filed elsewhere, but this is less common. Check with the lender before you apply.

Can I use a refund advance to pay off debt?

Yes, you can use the money for any purpose. However, remember that you are paying a fee to borrow money that is already yours. If you can wait two to four weeks for your refund, you will save the fee.

What if I do not receive the money within the promised timeframe?

Contact the lender's customer service line immediately. Provide your application number and the date you applied. Ask them to confirm the status of your loan and when you can expect the deposit. If there is a problem with your bank account information, they will ask you to update it. If the delay is the lender's fault, ask whether they will waive or reduce the fee.