The main tax services offering refund advances
Refund advances are offered by most major tax preparation chains and some independent tax offices, but not all of them. The largest providers are H&R Block, Jackson Hewitt, Liberty Tax Service, and TaxACT. Some regional chains and independent preparers also offer them, though availability varies by location and changes year to year.
These services don't lend you money directly in most cases. Instead, they partner with banks or lending companies that issue the loan. The tax preparer handles the paperwork, the lender approves and funds the advance, and the amount is deducted from your refund when it arrives. You pay the lender's fee upfront or it's taken from the advance itself.
Not every location of a chain offers refund advances, and not every tax preparer at a location that offers them will recommend one. Availability also depends on the type of return you're filing and whether you meet the lender's requirements.
Key Takeaways
- H&R Block, Jackson Hewitt, Liberty Tax Service, and TaxACT are the most common sources for refund advances, though availability varies by location.
- The lender—not the tax service—makes the final decision on whether to fund your advance, based on your income, filing status, and refund amount.
- Fees for refund advances typically range from $50 to $200 depending on the lender and the size of your advance, and are usually deducted from your refund.
- You receive the advance within one to three business days if approved, but the full refund from the IRS may take weeks longer.
- Some tax services charge for the advance itself, while others charge only if you don't receive your refund within a certain timeframe.
How to learn about a tax service near you offers refund advances
Call the location directly and ask whether they offer refund advances (sometimes called "rapid refunds" or "when ready refunds"). Don't assume that because a chain offers them nationally that your local branch does. Some franchises or independently owned locations don't participate in the program.
When you call, ask three things: whether they offer the service, what the fee is, and whether the fee is charged upfront or deducted from your refund. Some services charge a flat fee regardless of advance size; others charge a percentage. A few charge nothing unless your refund is delayed past a certain date.
You can also ask whether the advance is issued by the tax service itself or by a partner lender. This matters because the lender's approval requirements may be stricter than the tax preparer's. If you have a very small refund or an unusual filing situation, the lender may decline even if the preparer thinks you may have access to.
What the lender looks at when deciding whether to fund your advance
The lender—not the tax preparer—makes the final call on whether to give you the money. They typically look at your refund amount, your filing status, and whether you've received a refund from the IRS in previous years. Most lenders won't advance money on a refund smaller than $500 or $600, though this varies.
They also check whether you've filed taxes in prior years and received refunds. A first-time filer or someone with no refund history may be declined. Some lenders require that you have a bank account, though this is becoming less common.
The lender does not usually pull your credit report or check your credit score. This is one reason refund advances are available to people who might not may have access to for other short-term loans. However, some lenders do verify income or employment, so be prepared to provide recent pay stubs or other proof of earnings if asked.
Fees and what they cover
Refund advance fees range from roughly $50 to $200, depending on the lender and the size of your advance. Some services charge a flat fee; others charge a percentage of the advance amount (usually 1 to 5 percent). A few charge nothing upfront but add a fee if your refund doesn't arrive within a set number of days—typically 10 to 21 days.
The fee covers only the advance itself, not the cost of preparing your tax return. If you're paying for tax preparation, that's a separate charge. Some tax services bundle the advance fee with the preparation fee; others list them separately so you can see exactly what you're paying for each service.
Ask whether the fee is deducted from the advance or charged separately. If it's deducted from the advance, a $100 fee on a $1,000 advance means you receive $900. If it's charged separately, you pay $100 out of pocket and receive the full $1,000 advance.
Timeline: when you get the money and when the IRS pays back the lender
If approved, you receive the advance within one to three business days. The lender deposits it into your bank account or issues it as a check or prepaid card, depending on the arrangement. This is the money you can use when ready.
The IRS processes your actual refund on a separate timeline. Standard refunds take 21 days from the date the IRS accepts your return, though this can be longer during peak season (January through April) or if the IRS needs to verify information on your return. When your refund arrives, the IRS sends it directly to the lender, who deducts the advance amount plus any fees and sends you the remainder.
If your refund is smaller than the advance plus fees, you may owe the difference. If your refund is larger, you receive the excess. If the IRS rejects or delays your return, the lender may ask you to repay the advance out of pocket, though some lenders waive this if the delay is the IRS's fault.
Situations where you might be declined
Lenders decline refund advances most often when the refund amount is too small, when you have no prior refund history, or when the lender cannot verify your income. Some lenders also decline if you've received an advance from them in the past and didn't repay it on time, or if you're filing a joint return and one spouse has a prior debt to the lender.
If you're declined by one lender, you can sometimes explore through a different tax service that uses a different lender. However, multiple applications in a short time can slow down the process, so ask the tax preparer which lender they use before you explore.
You're also more likely to be declined if you're claiming a large number of dependents, if you have a very high income (which can trigger additional IRS verification), or if you're filing an amended return or a return for a prior year.
Alternatives if you can't get a refund advance
If the lender declines you, you have a few options. You can wait for your refund from the IRS, which is free but takes longer. You can ask the tax preparer whether a different lender is available through their service. Or you can look into other short-term borrowing options, though most charge higher fees than refund advances.
Some credit unions and banks offer tax refund loans to their members, sometimes at lower fees than commercial tax services. If you're a member of a credit union, call and ask whether they offer them. You'll need to provide the same information—your expected refund amount and filing status—but the approval process may be faster.
If you need the money urgently and can't get an advance, a personal loan from a bank or credit union, a payday loan, or a cash advance on a credit card are other options, though all carry higher costs and risks than a refund advance.
Frequently Asked Questions
What happens if the IRS rejects my return after I've received the advance?
You're responsible for repaying the lender, usually within 30 days. Some lenders will work with you on a payment plan; others require the full amount when ready. This is why it's important to make sure your return is accurate before you take the advance—errors that trigger an IRS rejection can leave you owing money you've already spent.
Can I get a refund advance if I file my taxes myself online?
No. Refund advances are available only through tax preparation services that partner with lenders. If you file through the IRS Free File program or use tax software on your own, you cannot get an advance. You must work with a tax preparer or service that offers the product.
Do I have to use the same tax service every year to get a refund advance?
No. You can use a different service each year. However, some lenders keep records of advances they've issued to you, so switching services doesn't may provide approval if you had problems with a prior advance. Ask the new service which lender they use before you explore.
Is a refund advance the same as a tax refund loan?
They're similar but not identical. A refund advance is a short-term loan secured by your expected refund. A tax refund loan is a broader category that includes advances, but also includes loans that don't require you to file taxes at all. Refund advances are the most common type of tax refund loan offered by tax preparation services.
What if my refund is delayed by the IRS—do I still owe the lender?
Yes, unless the lender's terms specifically waive the debt if the delay is the IRS's fault. Some lenders do offer this protection; others don't. Read the agreement carefully before you sign, and ask the tax preparer to explain what happens if the IRS takes longer than expected to process your return.