Which tax companies offer refund advances and how they work
The major tax preparation companies that offer refund advances are H&R Block, Jackson Hewitt, Liberty Tax Service, and TaxACT. Each one calls the product by a different name — H&R Block calls it a Refund Advance, Jackson Hewitt calls it a Rapid Refund, Liberty Tax calls it a Liberty Tax Refund Advance — but they all work the same way. You file your tax return with them, and if you meet their requirements, they lend you money against your expected refund before the IRS sends it.
The loan itself comes from a bank partner, not from the tax company. H&R Block partners with Republic Bank, Jackson Hewitt works with Customers Bank, and Liberty Tax works with different lenders depending on your state. The tax company files your return electronically, the bank approves the loan based on your expected refund amount, and you receive the money within one to two business days, usually by direct deposit or a prepaid card.
Not every tax company offers this product. TurboTax, for example, does not offer a refund advance. Some smaller regional tax preparation offices may not offer one either. If you are working with a local tax preparer, ask directly whether they have a refund advance product available.
Key Takeaways
- H&R Block, Jackson Hewitt, Liberty Tax Service, and TaxACT all offer refund advances, though each uses a different product name.
- The loan comes from a bank partner, not the tax company itself, and you receive the money within one to two business days.
- You must file your return with that specific company to get their refund advance — you cannot file with one company and get a loan from another.
- Each company sets its own fees, which typically range from $25 to $100 depending on the loan amount and your state.
- The IRS refund goes directly to the lender to repay the advance, so you do not receive a separate refund check.
How to find which company offers the best terms for you
The main differences between companies are the fee amount, the maximum loan size, and whether they charge extra for certain payment methods. H&R Block's Refund Advance typically has a fee of $0 to $100 depending on the loan amount and whether you are an existing customer. Jackson Hewitt's Rapid Refund charges a fee that varies by state, usually between $35 and $75. Liberty Tax's refund advance fee also varies by location and loan size.
Before you commit to filing with any company, call or visit their website and ask three specific questions: What is the fee for a loan of your expected refund amount? What is the maximum loan they will give you? And how long does it take to receive the money once approved? Write down the answers from each company so you can compare them side by side.
Keep in mind that the fee is separate from what you pay for tax preparation itself. Some companies bundle the refund advance fee into their overall tax prep cost, while others charge it separately. Ask whether the fee is refundable if you change your mind after the loan is approved but before the money is deposited.
What documents and information you need to bring
To get a refund advance, you need the same documents you would bring to file your taxes normally: your Social Security number or ITIN, proof of income (W-2s, 1099s, or business records), proof of deductions if you are itemizing, and a valid photo ID. You also need your bank account information if you want the loan deposited directly to your account, or you can receive it on a prepaid card instead.
The bank that issues the loan will run a credit check, but most refund advances are not credit-based — the bank is lending against your expected refund, not your credit history. However, some lenders may decline you if you have unpaid tax debt, child support arrears, or a history of defaulting on previous refund advances.
Timeline from filing to receiving the money
The speed of a refund advance depends on how quickly you file and how quickly the bank approves the loan. If you file in early February, you can often receive the advance within one to two business days. If you file in late March or April, the timeline may stretch to three to five business days because the tax company and bank are processing many more returns at once.
Once you receive the advance, the IRS processes your actual refund separately. When the IRS sends your refund to the bank, the bank keeps the amount of the advance plus the fee and sends you any remaining balance. This usually happens within two to three weeks of when you filed, though it can take longer if the IRS needs to verify information on your return.
Fees and what they cover
The refund advance fee is the cost of borrowing the money early. It is not the same as the tax preparation fee. A typical refund advance fee ranges from $25 to $100, depending on how much you borrow and which company you use. Some companies charge a flat fee regardless of loan size, while others charge a percentage of the loan amount or a tiered fee based on brackets.
The fee covers the cost of the loan itself — the interest, the bank's processing, and the tax company's coordination. It does not cover tax preparation. If you are paying for someone to prepare your taxes, that is a separate charge. Some tax companies offer discounts on preparation fees if you take a refund advance, but this is not standard.
A few companies offer refund advances with no fee if you meet certain conditions, such as being a returning customer or having your refund deposited to a specific bank account. Ask about these options when you call to compare.
What happens if the IRS delays your refund
If the IRS holds your return for review or verification, your actual refund will be delayed. The refund advance you received is still your responsibility to repay. The bank will wait for the IRS refund to arrive, but if it takes longer than expected, you may need to repay the advance from another source.
This is rare, but it can happen if the IRS flags your return for identity verification, if you claimed the Earned Income Tax Credit and the IRS is reviewing it, or if there is a discrepancy between what you reported and what the IRS has on file. When you explore for the refund advance, ask the company what happens if your refund is delayed beyond a certain date.
Refund advances versus other ways to get money before tax season ends
A refund advance is one option, but it is not the only way to get money quickly if you are expecting a refund. You could file your taxes yourself using free software and wait for the IRS to deposit your refund directly, which takes about two to three weeks and costs nothing. You could also use a tax preparation company that does not offer a refund advance but charges lower preparation fees.
Another option is a refund transfer, which is different from a refund advance. With a refund transfer, the tax company arranges for your refund to be sent to a temporary account, and you receive the money within one to two business days. The fee for a refund transfer is usually lower than a refund advance fee, but you have less control over the timing and the money goes through an intermediary account.
If you do not need the money when ready, the cheapest option is to file for free and wait for your refund. The IRS offers free filing through its Free File program if your income is below a certain threshold, and many tax companies offer free preparation for straightforward returns.
Frequently Asked Questions
Can I get a refund advance if I owe back taxes?
Most companies will not give you a refund advance if you have unpaid federal or state tax debt. The IRS can intercept your refund to pay what you owe, which means the bank would not receive the money to repay the loan. Some companies may make exceptions if your back taxes are being paid through a payment plan, so ask the company directly.
What if my refund is smaller than the advance I borrowed?
This is uncommon because the bank bases the loan amount on your estimated refund. However, if your refund ends up being smaller — for example, because you made a calculation error or your income changed — you would owe the difference. The bank would take what the IRS sends and you would need to repay the shortfall separately.
Can I get a refund advance if I file electronically on my own?
No. You must file your return through the tax company that is offering the refund advance. If you file on your own using TurboTax, FreeTaxUSA, or the IRS Free File program, you cannot get a refund advance from H&R Block or another company afterward.
Do I have to take the refund advance if I file with a company that offers it?
No. You can file your taxes with H&R Block, Jackson Hewitt, or any other company and decline the refund advance. You will straightforward wait for the IRS to send your refund directly, which takes two to three weeks. You will not be charged the advance fee if you do not take the loan.
What is the difference between a refund advance and a refund anticipation loan?
These terms are often used interchangeably, and they work the same way. A refund anticipation loan is an older term that some companies still use. Both refer to a short-term loan against your expected tax refund, issued by a bank and coordinated through a tax preparation company.