Tax refund advances come from tax preparation companies and some banks, not from the IRS

A tax refund advance is a short-term loan that a tax preparation company or bank gives you based on the refund they expect you to receive. You do not get the money from the government — you get it from a private lender who is betting that your tax return will produce the refund you claim. The lender then waits for the IRS to send your actual refund and keeps it to repay the loan.

The places that offer these advances fall into three categories: tax preparation chains that do your taxes in-person or online, banks that partner with tax software companies, and some credit unions. Each has different costs, speed, and requirements. Understanding where to look and what each charges is the only way to know whether an advance makes sense for your situation.

Key Takeaways

  • Tax preparation chains like H&R Block and Jackson Hewitt offer refund advances at their offices, usually for a fee between $0 and $100 depending on the lender and loan size.
  • Some banks and credit unions offer refund advances to their customers, sometimes at lower cost than tax preparation companies.
  • Online tax software companies partner with banks to offer advances, which you can request during the filing process.
  • The IRS does not offer refund advances — only private lenders do, and they charge for the service.
  • Refund advances typically arrive within one to five business days, much faster than waiting for the IRS to process and mail your refund.

Tax preparation chains that offer advances in person

The largest tax preparation companies — H&R Block, Jackson Hewitt, Liberty Tax, and JTX (formerly Jackson Hewitt franchises) — all offer refund advances at their physical locations. You file your taxes with them, and if you want the advance, you can request it on the same day. The lender reviews your return, approves or denies the advance based on the refund amount, and deposits the money into your bank account or loads it onto a prepaid card.

Costs vary by company and by location. Some H&R Block offices charge $0 for the advance if you use their tax preparation service, while others charge a fee. Jackson Hewitt and Liberty Tax typically charge a fee that ranges from $25 to $100, depending on the loan size and the specific franchise. Ask the tax preparer for the exact fee before you agree to the advance — it should be disclosed in writing before you sign.

The main advantage of using a tax preparation chain is speed and certainty. You know the same day whether you may have access to, and the money usually arrives within one to five business days. The main disadvantage is that you are paying for both the tax preparation service and the advance fee, which can add up if your return is straightforward.

Banks and credit unions that offer advances to account holders

Some banks and credit unions offer refund advances directly to their customers, often at a lower cost than tax preparation companies. You typically need to have a checking account with the bank, file your taxes through their partner tax software, and request the advance during the filing process. The bank then reviews your return and deposits the advance into your account if you are approved.

Banks that have offered refund advances in the past include Chime, LendingClub, and some regional credit unions, though the availability and terms change year to year. Contact your bank or credit union directly to ask whether they offer refund advances and what the cost is. Some banks charge no fee at all if you maintain a minimum balance or meet other account requirements.

The advantage of using your bank is that you already have a relationship with them, the process is often faster, and the fee may be lower or zero. The disadvantage is that not all banks offer this product, and you may be limited to using their tax software rather than choosing your own.

Online tax software companies and their bank partners

Some online tax software companies partner with banks to offer refund advances. When you file your taxes through their software, you see an option to request an advance. The software connects you to the bank partner, which reviews your return and either approves or denies the advance. If approved, the money goes into your bank account.

TurboTax, TaxAct, and other major software providers have offered these partnerships in the past, though the specific banks and terms change each year. The cost is usually disclosed in the software before you request the advance. Some partnerships charge a flat fee, while others charge a percentage of the advance amount.

The advantage is convenience — you file your taxes and request the advance in one place without visiting an office. The disadvantage is that you are limited to the bank partner that the software company has chosen, and you cannot shop around for a better rate once you have started filing with that software.

What to compare when choosing where to get an advance

Before you request a refund advance from any lender, compare these four things: the fee or interest rate, the speed of funding, whether you need to be a customer already, and what documents you need to provide.

The fee is the most important number. Some lenders charge a flat fee ($25, $50, $100), while others charge a percentage of the advance amount (typically 1 to 5 percent). Calculate what you will actually pay by multiplying the percentage by your expected refund, or by adding the flat fee to the advance. If your refund is small, a percentage-based fee may be cheaper; if your refund is large, a flat fee may be cheaper.

Speed matters if you need the money urgently. Most lenders promise one to five business days, but some are faster if you use a prepaid card instead of a bank transfer. Ask the lender what the typical timeline is and whether it changes based on how you receive the money.

Customer requirements vary. Some lenders require you to be a customer already; others do not. If you are not a customer, you may need to open an account or provide more documentation. Ask before you start the process.

What happens after you receive the advance

Once you receive the advance, the lender files your tax return with the IRS on your behalf (or you file it yourself, depending on the lender). The IRS processes your return and sends your refund to the lender, not to you. The lender then deducts the advance amount plus any fees from your refund and sends you the remainder, if any.

If your actual refund is smaller than the advance you received, you may owe the lender the difference. This is rare but possible if you made an error on your return or if your income changed. Ask the lender what happens in this scenario before you request the advance.

If your actual refund is larger than the advance, you will receive the extra money after the lender deducts the advance and fees. This usually takes another one to two weeks after the IRS sends the refund to the lender.

Alternatives if you do not want to use a refund advance

If the fee seems too high or you do not want to borrow against your refund, you have other options. You can file your taxes for free through the IRS Free File program if your income is below a certain threshold (the threshold changes each year — check IRS.gov for the current limit). You can also use free tax software offered by nonprofits like the Community Volunteer Income Tax information (VITA) program, which operates at libraries, community centers, and other locations.

If you need money before your refund arrives, you could also look into a small personal loan from a bank or credit union, a payday loan (though these are expensive), or borrowing from family or friends. A personal loan from a bank or credit union is usually cheaper than a refund advance, especially if you have decent credit.

Frequently Asked Questions

Can I get a refund advance if I do not have a bank account?

Most lenders require a bank account or will load the advance onto a prepaid card. If you do not have either, ask the lender whether they offer a check or cash option. Some tax preparation chains will give you cash at their office, though this is less common.

What if the IRS rejects my return after I get the advance?

If the IRS rejects your return, the lender will not receive a refund to repay the advance. You will owe the lender the full amount you borrowed plus any fees. This is why lenders ask to see your return before approving the advance — they are checking for obvious errors. If you receive a rejection notice from the IRS, contact the lender when ready to discuss your options.

Is a refund advance the same as a refund anticipation loan?

Yes, the terms are used interchangeably. Both refer to a short-term loan based on your expected tax refund. The lender gives you the money upfront, and the IRS refund repays the loan.

Can I get a refund advance if I owe back taxes or child support?

Probably not. The IRS will intercept your refund to pay back taxes, and the state or federal government can intercept it to pay child support or other debts. Lenders know this and will deny the advance if they see these issues on your return. Be honest with the lender about any debts you owe.

How much of my refund can I borrow?

Most lenders will advance you 50 to 100 percent of your expected refund, depending on their risk assessment. They review your return to estimate the refund amount and then decide how much they are willing to lend. Ask the lender what percentage they typically advance before you request one.