You can get a refund advance during tax season, but only if you file your return through a participating tax preparer
A refund advance (sometimes called a refund anticipation loan or RAL) is money a tax preparer or lender gives you before the IRS sends your actual refund. You do not borrow against the government — you borrow against what your own tax return will bring back. The timing matters: you can only get one after you have filed your return and the tax preparer has calculated what you are owed.
The window is narrow. Tax season runs from early January through mid-April, and most lenders stop offering advances by early April because refunds take longer to arrive as the important date approaches. If you file in March or April, you may not have time to receive the advance before your actual refund arrives anyway, which makes the loan pointless.
Not every tax preparer offers advances, and not every lender will approve you. The lender looks at your refund amount (they want it to be large enough to cover the loan plus fees) and may check your credit or bank account. Some will advance the full refund amount; others cap it at 50 to 80 percent.
Key Takeaways
- You must file your tax return through a participating tax preparer to get a refund advance — you cannot get one by filing online on your own.
- The advance is available only during tax season, roughly January through early April, and lenders typically stop offering them as the April important date approaches.
- The lender will look at your refund amount and may review your credit or bank account before deciding whether to approve you and how much to lend.
- You pay fees for the advance, which come out of your refund when it arrives, so the money you actually receive is smaller than the loan amount.
How the timing works: filing, approval, and receiving money
The sequence matters because each step takes time. You file your return with a tax preparer who participates in refund advances. That same day or the next, the preparer sends your return to the IRS and tells the lender what your refund will be. The lender reviews your information — usually a quick process, sometimes within hours.
If approved, the lender deposits the advance into your bank account, typically within one to three business days. Meanwhile, the IRS is processing your actual return. When your real refund arrives at the IRS (which can take 21 days or longer), the IRS sends it to the lender instead of to you. The lender keeps the fees and sends you the remainder, or the fees come out of your account automatically.
This is why filing early in tax season matters. If you file in January or early February, you have weeks for the IRS to process your return and send the refund back before the lender's advance money runs out. If you file in late March, the IRS may not send your refund back until after you have already received the advance, which defeats the purpose.
Who offers refund advances and where to find them
Tax preparation chains like H&R Block, Jackson Hewitt, and Liberty Tax have historically offered refund advances, though availability changes year to year and varies by location. Some community banks and credit unions also offer them, particularly those focused on tax season lending. Online tax preparation services rarely offer advances because they do not have the infrastructure to lend money directly.
The easiest way to find out whether a tax preparer offers advances is to ask before you file. Call ahead or ask in person. If they do offer them, ask what the fees are, what percentage of your refund they will advance, and whether they require a bank account with them or will deposit to any bank.
Be aware that refund advances are less common than they were ten years ago. Many lenders have stepped back from the product because the IRS has made the process slower and more complicated. Some tax preparers now offer refund transfers instead, which is a different product with different timing and costs.
What fees you will pay and how they reduce your refund
Refund advance fees vary widely. Some lenders charge a flat fee (for example, $50 to $150), while others charge a percentage of the advance amount (typically 3 to 5 percent). Some charge both. A few also charge process or processing fees on top of the loan fee.
The fees come out of your refund when it arrives. If your refund is $2,000 and the advance fee is $100, you receive $1,900 total: the $1,000 advance you got upfront, plus $900 when the refund arrives. You do not pay the fee separately; it is deducted automatically.
This is why the math matters before you agree. If you need money urgently and the advance gets it to you weeks earlier, the fee may be worth it. If your refund will arrive in a few weeks anyway, paying $100 to get it two weeks sooner is usually not a good deal. Ask the lender for the total fee in dollars, not just a percentage, so you can decide whether the speed is worth the cost.
Why the IRS changed how refund advances work
In 2011, the IRS stopped allowing lenders to use a special fast-track process for refund advances. Before that, lenders could get refund information back from the IRS in days. Now they have to wait for the full refund to arrive like everyone else, which can take three weeks or longer. This made refund advances much less attractive to lenders and much less useful to borrowers.
Because of this change, many lenders stopped offering refund advances entirely. The ones that still do are betting that your refund will arrive quickly enough that the advance still gets you money faster than waiting. But that bet does not always pay off, especially late in tax season.
Refund advances versus other ways to get money before tax day
If you need money before your refund arrives, you have other options. A refund transfer is similar to an advance but works differently: the tax preparer arranges for your refund to be deposited into a temporary account, and you can withdraw it when ready. You still pay fees, but you do not borrow money — you just receive your refund faster. Refund transfers are more widely available than advances.
A personal loan from a bank or credit union is another route. You borrow money based on your credit and income, not your refund. The interest rate may be lower than a refund advance fee if you have good credit, but the approval process takes longer.
A payday loan or cash advance is faster but usually much more expensive. These are short-term loans with very high interest rates, and they are meant to be repaid in weeks, not months. Avoid them if you can.
What happens if your refund is smaller than expected
If you receive a refund advance and then the IRS adjusts your refund downward (because of an error on your return, a debt offset, or a correction), you may owe the lender money. The lender advanced you $1,000, but your actual refund is only $800. You will be asked to repay the $200 difference.
This is rare but it happens. It is one reason lenders look at your refund amount before approving an advance — they want a cushion. If you think your refund might be adjusted, tell the lender before you take the advance.
Frequently Asked Questions
Can I get a refund advance if I file my taxes online myself?
No. Refund advances are only available through tax preparers who have agreements with lenders. If you file your own return using tax software, you cannot get an advance. You would need to file through a tax preparation office or chain that offers them.
What if I do not have a bank account?
Most lenders require a bank account because they deposit the advance electronically and withdraw the fees when your refund arrives. Some tax preparers may offer alternatives like a prepaid card, but this is uncommon. Ask before you file.
Can I get a refund advance if I owe back taxes or child support?
Probably not. If you owe federal taxes, the IRS will offset your refund to pay what you owe. If you owe child support, the state may do the same. Lenders know this and will not advance money against a refund they know will be reduced. Tell the lender upfront if you have these debts.
How much of my refund can I borrow?
It depends on the lender. Some will advance up to 100 percent of your expected refund; others cap it at 50 or 80 percent. Ask the tax preparer what their lender's policy is before you file.
What if the lender denies my advance?
The lender may deny you if your refund is too small, your credit is poor, or you have a history of debt offset. If denied, you can still file your return and wait for your refund to arrive normally. You can also ask the tax preparer whether a refund transfer is available instead.