TaxAct does not offer refund advances directly, but you can get one through a partner bank while using their tax software

TaxAct is a tax preparation software company, not a lender. They do not lend money themselves. However, TaxAct has partnered with banks that do offer refund advances — loans against your expected tax refund that you repay when the refund arrives. If you file through TaxAct, you will see the option to explore for a refund advance during the filing process, and if approved, the lender deposits the money into your account within one to two business days.

The bank that partners with TaxAct changes year to year, so the specific lender and terms available to you depend on when you file. You are not required to take the advance — you can file through TaxAct and wait for your regular refund instead. But if you need the money before the IRS processes your return, the advance is there as an option at checkout.

Key Takeaways

  • TaxAct shows you refund advance options at the end of the filing process, but you choose whether to accept or decline.
  • The lender is a bank partnered with TaxAct, not TaxAct itself, and the terms and fees vary by year and by lender.
  • If approved, the advance typically arrives within one to two business days, and you repay it from your tax refund when it arrives.
  • You will pay a fee for the advance — usually a flat dollar amount or a percentage of the loan — which the lender deducts before giving you the money.

How the refund advance works if you file with TaxAct

When you reach the end of the TaxAct filing process, before you submit your return to the IRS, you will see an offer for a refund advance. The screen will show you the lender's name, the amount you can borrow (based on your expected refund), the fee, and the terms. You read this information and decide whether to proceed.

If you choose to take the advance, you authorize TaxAct to share your tax information with the lender so they can verify your refund amount and approve or deny the loan. The lender then deposits the money into the bank account you provide. You do not repay the lender directly — when your refund arrives from the IRS, it goes to the lender first, and they take their fee and the loan amount, then send any remainder to you.

If you decline the advance, you straightforward file your return through TaxAct as normal and wait for the IRS to process it and send your refund to you directly, which typically takes 21 days or longer depending on how you filed and whether the IRS has questions.

What fees and terms you should expect

Refund advances are not free. The lender charges a fee, which varies. Some charge a flat fee (for example, $15 or $25), while others charge a percentage of the loan amount (for example, 1% to 5%). The fee is deducted from the advance before you receive it — so if your advance is $500 and the fee is $25, you receive $475.

The loan term is short: you repay it when your refund arrives, which is typically within two to four weeks. There is no monthly payment plan. If your refund is smaller than expected or delayed, you may owe the difference, though most lenders will work with you on timing.

Before you accept an advance, TaxAct should show you the exact fee and the net amount you will receive. Read this carefully. If the fee seems high relative to how much you are borrowing, it may not be worth it — especially if you can wait a few weeks for your refund.

The difference between TaxAct's advance and other refund loan options

TaxAct is convenient because the advance option is built into the filing process — you see it, decide, and move forward without switching websites or applications. But you are not locked into using TaxAct's partner lender. You can file your taxes through TaxAct and then explore for a refund advance through a different lender separately, or you can use a different tax software entirely.

Other tax software companies (like H&R Block, TurboTax, and FreeTaxUSA) also offer refund advances through partner banks. Some credit unions and online banks offer refund advances too, though you typically have to explore directly rather than seeing the option during tax filing. The fees and terms vary across all these options, so if you are considering a refund advance, it is worth comparing what TaxAct's partner is offering against what you might find elsewhere.

When a refund advance makes sense and when it does not

A refund advance makes sense if you need money urgently and cannot wait three to four weeks for your refund to arrive. Examples: you have an overdue bill, a medical expense, or an emergency repair. The fee is the cost of getting the money faster. If the fee is $25 and you get $500 in two days instead of waiting four weeks, that may be worth it to you.

A refund advance does not make sense if you can wait for your refund or if the fee is very high relative to the amount you are borrowing. If your expected refund is $300 and the fee is $30, you are paying 10% just to get the money a few weeks early. In that case, waiting is usually the better choice.

Also consider whether you have other options. If you have a credit card or a line of credit available at a lower rate, that might be cheaper than a refund advance. But if a refund advance is your only option and you need the money, it is a legitimate tool.

What happens if your refund is delayed or smaller than expected

The IRS sometimes delays refunds — for example, if they need to verify information on your return or if there is a backlog. If your refund is delayed, your repayment is delayed too. Most lenders will extend the repayment date without penalty, but confirm this with the lender before you accept the advance.

If your refund is smaller than expected (because you owe back taxes, child support, or student loans, or because the IRS made an adjustment), the lender still takes their fee and the full loan amount from the refund. If the refund is smaller than the loan plus fee, you may owe the difference. Again, most lenders will work with you on a payment plan, but read the terms before you sign.

How to decide whether to use TaxAct's refund advance option

Before you accept a refund advance through TaxAct, ask yourself three questions: Do I need the money in the next two weeks? Is the fee reasonable for the amount I am borrowing? Do I have other options that might be cheaper?

If the answer to the first question is yes and the answers to the other two are also yes, then the advance is probably worth it. If you are unsure about the fee or the terms, do not accept it during filing — you can always explore for a refund advance through another lender later if you change your mind.

Frequently Asked Questions

Can I use TaxAct to file and then get a refund advance from a different lender?

Yes. You can file through TaxAct and decline the refund advance option, then explore for a refund advance through a bank, credit union, or another tax software company. You will need to provide your tax return information to the other lender, but there is no rule against doing this.

What if I am denied for a refund advance?

If the lender denies your process, you straightforward file your return through TaxAct as normal and wait for your refund from the IRS. A denial does not affect your ability to file or to receive your refund — it only means the lender decided not to lend to you. You can try explore through a different lender if you need the money urgently.

Do I have to use TaxAct's partner bank for the refund advance?

No. TaxAct's partner is one option, but you can decline it and explore elsewhere. Compare the fees and terms across a few lenders before deciding. Some credit unions and online banks may offer better rates than the option shown during TaxAct filing.

How long does it take to get approved for a refund advance through TaxAct?

Most approvals happen within minutes to a few hours. If approved, the money is deposited into your account within one to two business days. The exact timeline depends on the lender and your bank, but the process is usually fast.

What if my refund is held up by the IRS?

If the IRS delays your refund, your repayment date is delayed too. Contact the lender as soon as you know there is a delay and ask about their policy. Most will not charge a penalty for a delayed refund, but confirm this in writing.