Liberty Tax does offer refund advances, but only through a third-party lender
Liberty Tax does not lend you money directly. Instead, the company partners with third-party lenders who offer refund advances—sometimes called refund anticipation loans or RALs—to Liberty Tax customers during tax season. When you file through Liberty Tax, you can choose to take out a loan against your expected refund from one of these partner lenders. The lender pays you the money upfront, and when your refund arrives from the IRS, it goes to the lender first to repay the loan plus fees.
This matters because it changes who you owe money to and what happens if your refund is smaller than expected. You are borrowing from a private lender, not from Liberty Tax or the government. The lender sets the terms, the interest rate, and the fees—not Liberty Tax.
Key Takeaways
- Liberty Tax partners with third-party lenders to offer refund advances; the company itself does not lend the money.
- You receive the loan amount within one to three business days if you choose this option at tax filing time.
- The lender charges fees and interest that vary by lender and loan amount, and these costs reduce what you ultimately receive.
- Your refund is sent directly to the lender to repay the loan, so you do not receive the full IRS refund amount.
- You must decide whether to take the advance when you file your taxes; you cannot request one after filing.
How the refund advance works at Liberty Tax
When you file your tax return at a Liberty Tax office, the tax preparer will ask whether you want a refund advance. If you say yes, you choose from the available lenders Liberty Tax partners with at that location. You sign loan documents that spell out the loan amount, the fees, and the repayment terms.
The lender then deposits the loan amount into your bank account, usually within one to three business days. You have the money in hand before the IRS even processes your return. When your refund is approved and sent by the IRS, it goes directly to the lender's account, not to you. The lender keeps enough to cover the loan amount plus fees and interest, and sends any remainder to you.
The timing matters: you must decide on the advance when you file. You cannot file your taxes normally and then request an advance later. The decision is part of the filing process.
Fees and costs you will pay
Refund advances are not free. The lender charges a fee for the loan, and this fee varies depending on the lender, the loan amount, and how quickly you want the money. Some lenders also charge interest on top of the fee. A loan of $500 might cost $50 to $100 in fees alone, depending on the lender. A loan of $2,000 might cost $150 to $300.
Liberty Tax also charges a separate fee for preparing your tax return. The refund advance fee is in addition to that preparation fee, not instead of it. So if you file through Liberty Tax and take a refund advance, you are paying both the tax prep fee and the loan fee.
The exact fees depend on which lender you choose and which Liberty Tax location you visit. Ask the tax preparer to show you the fee schedule before you sign anything. The loan documents must disclose the total cost and the annual percentage rate (APR), though the APR is somewhat misleading because the loan is short-term—you repay it when your refund arrives, usually within weeks.
When a refund advance makes sense and when it does not
A refund advance makes sense if you need cash when ready and cannot wait for the IRS to process your return. The IRS typically takes 21 days to process a return filed electronically, though it can take longer if there are errors or if the return is selected for review. If you are facing an urgent expense—overdue rent, a car repair, medical bills—the advance gets you money in days instead of weeks.
A refund advance does not make sense if you can wait. The fees you pay are money you lose. If the IRS takes three weeks to send your refund and you take a $1,500 advance with a $150 fee, you have paid $150 to receive money three weeks early. That is a cost for convenience, and it is worth calculating before you commit.
A refund advance also does not make sense if your refund might be smaller than you expect. If the IRS reduces your refund because of an error on your return, or because you owe back taxes or student loan debt, the lender still expects to be repaid in full. You could end up owing money out of pocket. The lender will contact you if the refund is not large enough to cover the loan and fees.
How Liberty Tax refund advances differ from other options
Some tax preparation companies offer refund advances directly through their own lending arms. H&R Block, for example, offers the Emerald Advance, which is a line of credit tied to your tax filing. TurboTax does not offer refund advances at all; you file online and wait for your refund from the IRS.
Liberty Tax's model—partnering with third-party lenders—means the terms and fees vary by location and by which lender is available at your local office. You do not have a single standard offer across all Liberty Tax locations. This can work in your favor if a particular lender has lower fees, or against you if the available lenders are expensive.
The other major difference is that Liberty Tax is a tax preparation service, not a lending company. The lender is the one taking the risk and setting the terms. Liberty Tax is facilitating the connection and taking a cut, but the loan itself comes from the third party.
What happens if your refund is delayed or smaller than expected
If the IRS delays processing your return, you still owe the lender on the schedule you agreed to. The loan does not automatically extend just because your refund is late. You may have to contact the lender and ask for an extension, and they may charge a fee for that.
If your refund is smaller than expected—because of an error, a tax debt, or a wage garnishment—the lender will still expect to be repaid. If your refund is $1,200 but you borrowed $1,500, the lender will contact you about the shortfall. You may have to pay the difference out of pocket, or the lender may offer to reduce the loan amount and charge you a higher fee.
Read the loan documents carefully before signing. They should explain what happens in these scenarios. If they do not, ask the tax preparer to explain it to you in writing.
Alternatives to a Liberty Tax refund advance
If you need money before your refund arrives, you have other options. A personal loan from a bank or credit union is often cheaper than a refund advance, especially if you have decent credit. The interest rate on a personal loan is usually lower than the effective cost of a refund advance, and you have more time to repay.
A credit card cash advance is another option, though it is usually more expensive than a personal loan. A payday loan is faster but often much more expensive than either.
If you do not need the money urgently, the simplest option is to wait for your refund. File your taxes electronically, and the IRS will deposit your refund into your bank account within 21 days in most cases. You pay nothing, and you receive the full amount.
Frequently Asked Questions
How fast do I get the money from a Liberty Tax refund advance?
The lender typically deposits the money into your bank account within one to three business days after you sign the loan documents. You do not have to wait for the IRS to process your return. The exact timing depends on the lender and your bank.
Can I get a refund advance if I file my taxes online instead of at a Liberty Tax office?
No. Liberty Tax refund advances are only available when you file in person at a Liberty Tax location. If you file online through Liberty Tax's website, you cannot take a refund advance through the company. You would have to file at a physical office.
What if I change my mind after I sign up for the refund advance?
The loan documents may allow you to cancel within a certain window—often a few days—but you should ask about this before you sign. Once the lender deposits the money, you are obligated to repay it. Cancellation policies vary by lender, so check the specific terms.
Do I have to use the refund advance money for anything specific?
No. Once the lender deposits the money into your account, you can use it for anything. The lender does not restrict how you spend it. You are straightforward borrowing against your expected refund.
What if the IRS rejects my return or asks for more information?
You still owe the lender. If the IRS rejects your return and you do not receive a refund, you will have to repay the loan out of pocket. This is why it is important to make sure your return is accurate before you take the advance. If the IRS asks for more information, the refund will be delayed, but you still owe the lender on the original schedule.