Banks, tax prep companies, and fintech lenders offer refund advances, not the IRS
The IRS does not offer refund advances. Instead, banks, tax preparation firms, and online lending companies provide these short-term loans against your expected tax refund. The lender gives you cash now, then takes repayment directly from your refund when it arrives. You are borrowing against money the government owes you, not borrowing from the government.
The companies that offer these advances fall into three categories: traditional banks (usually through their tax prep services), national tax preparation chains, and standalone fintech lenders. Each charges different fees and has different speed and approval processes. None of them are government programs, and none require you to use them—they exist because the IRS can take weeks or months to send refunds, and some people need cash sooner.
Key Takeaways
- Banks, H&R Block, TurboTax, and online lenders like MoneyLion and Earnin offer refund advances, but the IRS itself does not.
- Refund advances are short-term loans that the lender repays from your tax refund, so you must file your return first and have a refund coming.
- Fees range from zero to several hundred dollars depending on the lender and the loan size, and some lenders charge interest rates between 20 and 36 percent APR.
- The fastest advances arrive within one to three business days, but you pay for speed through higher fees or interest charges.
- If your refund is smaller than expected or delayed, you remain responsible for repaying the loan even if the refund does not cover it.
Traditional banks offering refund advances
Major banks including Wells Fargo, Bank of America, and Chime have offered refund advances in past years, though availability changes annually and varies by state. These are typically available only to customers who use the bank's tax preparation service or file through a partner tax prep company. The bank funds the advance and recovers it from your IRS refund when it deposits.
Bank-based advances usually have lower fees than standalone lenders—sometimes as low as $0 to $50—because the bank already has your account information and can move money quickly. However, not all banks offer this product every year, and some have discontinued it entirely. Call your bank's tax services line or ask during tax prep to find out whether they currently offer refund advances.
Tax preparation chains and software companies
H&R Block, Jackson Hewitt, Liberty Tax, and TurboTax all offer refund advances to people who file through them. H&R Block calls theirs a Refund Advance Loan; TurboTax offers it through partner lenders. Jackson Hewitt and Liberty Tax market theirs as Rapid Refund or similar names. Each charges a separate fee on top of tax prep fees, typically $50 to $200 depending on the loan amount and how fast you need the money.
These companies have the advantage of already having your tax information when you file, so they can fund advances quickly—often within one business day of filing. The tradeoff is that their fees are higher than banks and you are locked into using their tax prep service. If you file with one of these companies and see a refund advance offer at checkout, read the fee disclosure carefully before accepting, because the fee is non-refundable even if your refund arrives faster than expected.
Online fintech lenders and paycheck advance apps
Companies like MoneyLion, Earnin, Brigit, and Dave offer refund advances through their mobile apps or websites. These lenders do not require you to file through them—you can file with any tax prep service or the IRS directly, then apply for an advance through the app. They typically charge $0 to $15 in fees for advances under $500, though some charge a percentage of the loan amount or a subscription fee for faster funding.
The speed advantage is real: many fintech lenders fund advances within hours rather than days. However, read the terms carefully. Some charge interest rates (often 20 to 36 percent APR) rather than flat fees, and some require you to maintain an active account with them or use direct deposit. A few offer "free" advances but make money through optional tips or premium memberships. The lowest-cost option is usually a $0-fee advance with a 3 to 5 business day wait, not the same-day option.
How to compare refund advance offers
The cost of a refund advance is the fee or interest rate, plus the wait time. A $500 advance with a $100 fee costs you $100 whether it arrives in one day or five days—the fee does not change. But if you can wait five days instead of one, you might find a $0-fee option that saves you the $100. Use this table to think through the tradeoff:
| Lender Type | Typical Fee | Typical Speed | Best For |
|---|---|---|---|
| Bank (if available) | $0–$50 | 1–3 business days | Existing customers who can wait a few days |
| Tax prep chain | $50–$200 | 1 business day | People already filing with them who need cash fast |
| Fintech lender | $0–$15 (or 20–36% APR) | Same day to 5 days | People with existing app accounts or willing to sign up |
Before you choose, check whether the fee is refundable if your refund arrives faster than the lender's estimate. Most are not. Also confirm what happens if your refund is smaller than the advance—you will owe the difference, and the lender will pursue collection. Some lenders require you to repay from your next paycheck if the refund does not cover it, which turns a refund advance into a paycheck advance.
What to watch for when choosing a lender
Not all refund advance offers are equal, and some carry hidden costs. Avoid lenders that charge interest rates above 36 percent APR, which is the threshold many states consider predatory. Check whether the fee is a flat amount or a percentage of the loan—a percentage fee means larger advances cost more. Verify that the lender is licensed to operate in your state; some fintech companies operate only in certain states due to lending regulations.
Read the repayment terms closely. Some lenders require the refund to go to a specific account they control, which means you cannot redirect your refund elsewhere. Others allow you to receive your refund normally and simply deduct the loan repayment from it. If you have other debts or tax liens, the IRS may offset your refund before it reaches the lender, leaving you responsible for the shortfall. Ask the lender what happens in that scenario before you sign.
Alternatives to refund advances
If the fees feel too high, consider waiting for your refund instead. The IRS typically processes refunds within 21 days if you file electronically and choose direct deposit. That is faster than many people expect. If you filed by mail, allow 4 to 6 weeks. You can check your refund status using the IRS Where's My Refund tool on IRS.gov without paying any fee.
If you need cash before your refund arrives and a refund advance is too expensive, a personal loan from a credit union or bank may be cheaper, especially if you have decent credit. Credit unions often offer small personal loans at lower rates than fintech lenders. You can also ask your employer for an advance on your next paycheck, which costs nothing if they allow it. These alternatives do not tie the loan to your tax refund, so they do not carry the risk of owing money if your refund is delayed or smaller than expected.
Frequently Asked Questions
Can I get a refund advance if I do not have a bank account?
Some fintech lenders and tax prep chains offer advances to people without bank accounts, but they typically require a way to receive the funds—usually a prepaid card or mobile wallet. You will need a valid ID and Social Security number. Ask the lender whether they can fund to a prepaid card or cash pickup location before you apply.
What if my refund is delayed and I already took an advance?
You are responsible for repaying the advance regardless of when your refund arrives. If the IRS delays your refund beyond the lender's estimate, the lender will contact you about repayment. Some lenders allow you to repay from a future paycheck or bank account; others may refer you to a collection agency. This is why reading the repayment terms matters before you borrow.
Do refund advances hurt my credit score?
Most refund advances do not appear on your credit report because they are not credit products—they are loans against a specific asset (your refund). However, if you fail to repay and the lender reports it to a collection agency, that will hurt your credit. Some fintech lenders do report to credit bureaus, so check the lender's privacy policy.
Can I take a refund advance from multiple lenders?
Technically yes, but it is risky. If you borrow $500 from two different lenders and your refund is only $800, you owe $200 after both are repaid. The IRS will not increase your refund because you borrowed against it. Only borrow what you actually need.
Is there a refund advance if I owe taxes instead of getting a refund?
No. Refund advances only exist because you have a refund coming. If you owe taxes, you cannot borrow against a negative balance. You would need to pay what you owe or set up a payment plan with the IRS instead.