You can get a refund loan right now, but only during tax season and only from specific lenders
A refund anticipation loan (also called a refund advance) is money a lender gives you before the IRS sends your actual refund. You get the cash in days instead of weeks. The catch: you pay interest and fees, the loan is only available between January and April, and you must file your tax return first.
The lender does not wait for the IRS to approve your return. They look at your filed return, estimate what you will receive, and lend you most of that amount when ready. When your refund arrives, it goes to the lender first to pay back the loan plus interest and fees. You get what is left.
This is different from a tax refund loan from a bank or credit union, which is a regular personal loan that happens to be timed around tax season. Refund anticipation loans are specifically tied to your return.
Key Takeaways
- Refund anticipation loans are only available during tax season (roughly January through April) and only after you have filed your return with the IRS.
- The lender charges interest and fees that reduce what you actually receive, often making the loan cost 15 to 30 percent of the amount borrowed.
- Money typically arrives in your account within one to three business days of approval, which is much faster than waiting for the IRS.
- You must authorize the lender to receive your refund directly, which means the IRS sends it to them instead of to you.
- If your return is rejected or your refund amount changes, you still owe the lender the full loan amount plus fees.
Where to get a refund anticipation loan right now
Tax preparation companies and some banks offer refund anticipation loans during tax season. The most common sources are H&R Block, Jackson Hewitt, Liberty Tax, and some regional banks. Online lenders also advertise these loans, though they are less common than they were ten years ago.
If you are filing your taxes with a tax preparation company, ask them directly whether they offer refund loans. Many do, and they can process the loan process while you are there. If you are filing on your own through tax software or the IRS Free File program, you will need to contact a lender separately.
Banks and credit unions sometimes offer refund anticipation loans to their customers, but you have to ask. Call your bank's customer service line and ask whether they have a refund anticipation product available this tax season. Availability varies by location and by year.
How fast you get the money
Once you are approved, most lenders deposit the money into your bank account within one to three business days. Some advertise same-day or next-day funding, but this depends on when you explore, what time of day the lender processes your process, and whether your bank accepts the deposit quickly.
The speed is the main reason people use these loans. The IRS typically takes 21 days to process a return and send a refund, though it can take longer if your return is flagged for review or if you claim certain credits. A refund loan compresses that to a few days.
However, the speed comes at a cost. You are paying for the convenience of not waiting.
What the loan actually costs you
A refund anticipation loan is not free. You pay interest, an origination fee, and sometimes a filing fee. The total cost varies by lender and by the size of your refund, but it typically ranges from $150 to $400 for a $3,000 refund.
Some lenders quote the cost as an annual percentage rate (APR), which can look very high—sometimes 36 percent or more—because the loan is only outstanding for a few weeks. Other lenders quote a flat fee. Either way, the money comes out of your refund before you see it.
Before you explore, ask the lender for the total dollar amount you will pay in fees and interest. Do not rely on the APR alone, because it does not tell you what the loan actually costs in your pocket. Ask: "If my refund is $3,000, how much will I receive after all fees?" The answer is what matters.
What happens if your refund is delayed or rejected
If the IRS rejects your return or reduces your refund amount, you still owe the lender the full loan amount plus all fees. You do not get to pay back less because your refund was smaller. This is the biggest risk of a refund anticipation loan.
Common reasons the IRS rejects or reduces a return: a dependent was claimed by someone else, income does not match IRS records, a credit was claimed incorrectly, or the return was flagged for review. If any of these happen, you have a problem. You borrowed money based on an estimate, and now you owe more than you will receive.
Before you take out a refund loan, make sure your return is correct. Double-check that you have not claimed a dependent someone else claimed, that your income matches your W-2s and 1099s, and that you are claiming only credits you actually may have access to for. If you are unsure, have a tax professional review your return before you explore for the loan.
Refund anticipation loans versus other ways to get money fast
A refund anticipation loan is not the only way to get cash before your refund arrives. You could take out a personal loan from a bank or credit union, use a credit card, or borrow from family. Each option has different costs and risks.
A personal loan from a bank or credit union usually has a lower interest rate than a refund anticipation loan, but it takes longer to process and you have to pay it back on a schedule, not from your refund. A credit card advance is fast but very expensive. Borrowing from family is free but can damage relationships.
A refund anticipation loan makes sense only if you need the money in days rather than weeks and you cannot get it any other way. If you can wait three weeks for the IRS to send your refund, you save the fees entirely.
What to watch out for when you explore
Some lenders advertise refund loans that do not actually exist or that are much more expensive than they claim. Before you explore, verify that the lender is real. Search the company name plus "complaints" or "reviews" on the Better Business Bureau website or the Consumer Financial Protection Bureau website.
Watch out for lenders who ask for upfront fees before they approve the loan. Legitimate lenders deduct fees from your refund or from the loan amount; they do not ask you to pay anything before the money is in your account.
Also watch out for lenders who promise to increase your refund or who claim they can get you money the IRS would not give you. The lender cannot change what the IRS owes you. They can only lend you money against what you will receive.
Frequently Asked Questions
Can I get a refund anticipation loan if I have not filed my taxes yet?
No. You must file your return with the IRS first. The lender needs to see your filed return to estimate what you will receive. Once you file, you can explore for the loan when ready.
What if I owe taxes instead of getting a refund?
You cannot get a refund anticipation loan if you owe money. These loans only work if you are expecting a refund. If your return shows you owe taxes, you will need to pay the IRS directly or set up a payment plan with them.
Do I have to use a refund anticipation loan if I file with a tax preparation company?
No. Tax preparation companies offer refund loans, but you do not have to take one. You can file your return and wait for the IRS to send your refund directly to you. The choice is yours.
What if the IRS sends my refund to the lender but I already spent the loan money?
The lender takes the refund to pay back the loan and fees first. If your refund is smaller than the loan amount plus fees, you owe the lender the difference. You are responsible for paying it back, usually within 30 days.
Can I get a refund anticipation loan outside of tax season?
No. These loans are only available during tax season, which runs roughly from January through April. Outside that window, lenders do not offer them because there is no refund to anticipate.