TurboTax is offering refund advances, but only through specific tax software products and with a bank partner

TurboTax does not offer refund advances directly. Instead, Credit Karma Tax — which is owned by the same parent company (Intuit) — partners with a bank called Sutton Bank to offer a product called Refund Advance. This is a short-term loan against your expected tax refund, not a service TurboTax itself provides. If you file through TurboTax, you cannot get a refund advance through that product.

The refund advance through Credit Karma Tax works this way: you file your return, the bank loans you money based on your expected refund amount, and when your actual refund arrives from the IRS, it goes to the bank first to repay the loan. The bank then sends you any remaining balance. You pay interest and fees for this loan, which reduces what you ultimately receive.

TurboTax itself has not offered refund advances in recent years. The company previously offered a product called TurboTax Refund Advance, but that program ended. If you are a TurboTax user looking for a refund advance, you would need to file through Credit Karma Tax instead, which is free to use for most tax situations.

Key Takeaways

  • TurboTax does not offer refund advances; Credit Karma Tax (owned by the same company) does through Sutton Bank.
  • A refund advance is a loan against your expected refund, not assistance programs — you pay interest and fees that reduce your final refund amount.
  • You must file your tax return through Credit Karma Tax to be considered for a refund advance; TurboTax filers cannot use this product.
  • The loan amount depends on your expected refund, and the IRS refund is sent to the bank to repay the loan before you receive the remainder.

How refund advances work through Credit Karma Tax

When you file through Credit Karma Tax, you have the option to request a refund advance during the filing process. You do not have to take it — it is optional. If you choose to proceed, the bank reviews your return and decides how much to loan you based on your expected refund amount.

The loan is typically funded within one to two business days if you are approved. You receive the money in your bank account, and you can use it immediately. The interest rate and fees vary by year and by the loan amount, so you should review the exact cost before accepting the offer. Common fees include an origination fee (usually a percentage of the loan) and interest charged daily until the loan is repaid.

When your actual IRS refund arrives, it is sent directly to Sutton Bank's account, not to you. The bank deducts the loan amount plus interest and fees, then sends you the remainder. If your actual refund is smaller than expected, you may owe the difference out of pocket. If your refund is larger, you receive the extra amount after the loan is repaid.

The cost of a refund advance

Refund advances are not free. The total cost includes an origination fee (charged upfront when the loan is approved) and daily interest that accrues from the day you receive the money until the IRS refund arrives and repays the loan. The origination fee is typically between 1% and 5% of the loan amount, though this varies.

Interest rates also vary. Because the loan is usually repaid within two to four weeks (the typical time for an IRS refund to arrive), the total interest cost is often modest in dollar terms, but it still reduces your refund. For example, a $2,000 refund advance with a 3% origination fee and 10% annual interest might cost you $60 to $80 total, depending on how long the IRS takes to process your refund.

Before you accept a refund advance, Credit Karma Tax shows you the exact fees and interest rate for your situation. You can see the total cost and the amount you will receive after repayment before you confirm the loan. This is the moment to decide whether the cost is worth getting the money faster.

Timeline: how long a refund advance takes versus waiting for the IRS

A refund advance is funded within one to two business days if you are approved. That means you could have money in your account by the next business day after you request it. In contrast, waiting for the IRS to process and send your refund typically takes 21 days or longer, depending on how you file and how you receive the refund.

If you file electronically and choose direct deposit to your bank account, the IRS usually sends your refund within 21 days. If you file by mail or request a check, it takes longer — often 4 to 6 weeks or more. A refund advance lets you skip that wait, but you pay for the speed through interest and fees.

The trade-off is simple: faster money costs money. If you can wait three weeks for your refund, you save the interest and fees. If you need the money now, a refund advance is one option, though it is not free.

Who can get a refund advance through Credit Karma Tax

Sutton Bank sets the requirements for a refund advance. You typically need a valid Social Security number, a U.S. bank account in your name, and a valid government-issued ID. You must also be at least 18 years old. The bank does a soft credit check, which does not affect your credit score, but it may decline you if you have a history of unpaid loans or other risk factors.

Your expected refund amount also matters. The bank will not loan you the full amount of your refund — they typically loan between 50% and 100% of your expected refund, depending on their assessment of risk. If your refund is very small (under a few hundred dollars), the bank may decline the loan because the fees would consume too much of the refund.

You must file your return through Credit Karma Tax to be considered. If you have already filed through TurboTax or another service, you cannot retroactively get a refund advance. You would have to file an amended return through Credit Karma Tax, which is not practical for this purpose.

Alternatives to refund advances

If you need money before your refund arrives, a refund advance is not your only option. A personal loan from a bank or credit union may have a lower interest rate, especially if you have good credit. A credit card cash advance is another option, though it typically carries a high interest rate and an upfront fee. A payday loan is fast but very expensive and should be a last resort.

If you are in financial hardship, some nonprofits and community organizations offer emergency assistance or short-term loans at no cost or low cost. Calling 211 (a referral line) can connect you to local resources. Some employers also offer paycheck advances or emergency loans to employees.

The simplest alternative is to wait for your refund. If you filed electronically with direct deposit, 21 days is the standard timeline. If you can manage without the money for three weeks, you avoid all fees and interest. Many people choose this route and simply plan their spending around the expected refund date.

How to file through Credit Karma Tax if you want a refund advance

Credit Karma Tax is free to use for most tax situations. You start by going to the Credit Karma Tax website, creating an account, and answering questions about your income, deductions, and filing status. The software walks you through the process step by step, similar to TurboTax.

When you reach the point where you choose how to receive your refund, you will see the refund advance option. You can review the offer (the loan amount, interest rate, and fees) and decide whether to accept it. If you accept, you provide your bank account information and complete the loan application. If you decline, you proceed with a standard refund and wait for the IRS to send it.

After you file, you can track the status of your return and your refund through the Credit Karma Tax portal. If you took a refund advance, you can also track the status of the loan and see when it has been repaid.

Frequently Asked Questions

Can I get a refund advance if I already filed with TurboTax?

No. Refund advances are only available if you file through Credit Karma Tax. If you have already filed with TurboTax, you cannot retroactively get a refund advance for that return. You would have to file an amended return through Credit Karma Tax, which is not practical and may trigger IRS scrutiny.

What happens if my actual refund is smaller than the loan amount?

You are responsible for repaying the difference. If you borrowed $2,000 but your actual refund is only $1,800, you owe the bank $200 plus any remaining interest. The bank will contact you about payment. This is why it is important to review the loan amount before accepting the advance.

Does a refund advance affect my credit score?

The initial check does not affect your credit score because it is a soft inquiry. However, if you default on the loan (fail to repay it), the bank may report it to credit bureaus, which would harm your score. As long as the IRS refund arrives and repays the loan, there is no credit impact.

Can I cancel a refund advance after I accept it?

This depends on the bank's policy and how quickly you contact them. Some banks allow you to cancel within a short window (often 24 to 48 hours) if you have not yet received the funds. Once the money is in your account, cancellation is more complicated. Check the loan agreement for the specific terms.

Is there a minimum or maximum refund amount to get a refund advance?

The bank sets minimums and maximums based on their risk assessment. Most banks require a refund of at least a few hundred dollars to make the loan worthwhile. The maximum is typically your full expected refund or slightly less. The exact amounts vary by year and by the bank's current policies.