Who offers tax refund advances online
Tax refund advances are offered by tax preparation companies, some banks, and standalone lending companies. The most common providers are H&R Block, TurboTax, Jackson Hewitt, Liberty Tax, and companies like MoneyLion and Earnin that focus on short-term loans. Some credit unions also offer them, though availability varies by location and membership status. Most of these providers let you request an advance while filing your taxes online, and the money typically arrives within one to three business days if you're approved.
The companies that offer these advances are not the same as the IRS. They are private businesses that lend you money based on your expected refund. You still file your actual tax return with the IRS through the normal process — the advance is separate. The lender then waits for your real refund to arrive and takes their payment from it, or you repay them directly depending on the loan structure.
Key Takeaways
- Tax preparation companies like H&R Block and TurboTax offer advances as part of their filing services, while standalone lenders like MoneyLion and Earnin offer them separately.
- Most online advances arrive within one to three business days, but you pay fees that reduce the amount you actually receive.
- Some credit unions offer advances to members, and a few banks partner with tax software to offer them, though options are more limited than with tax prep companies.
- The advance is a loan from a private company, not money from the government — you still file your taxes normally and the lender recovers their money from your actual refund.
Tax preparation companies and their advance products
H&R Block offers a product called the Refund Advance Loan, available to customers who file through their platform. You can request it while preparing your return online. TurboTax offers a similar product called the Refund Advance, also available during the filing process. Jackson Hewitt and Liberty Tax both offer refund advances to their clients as well. These companies make their money partly from filing fees and partly from the fees charged on the advance itself.
The process is straightforward: you file your taxes with them, they estimate your refund based on the information you provide, and they offer to lend you a portion of that amount when ready. If you accept, the money goes into your bank account within a few days. When your actual refund arrives from the IRS, the lender takes their repayment from it. If your actual refund is smaller than expected, you may owe the difference.
Standalone lending companies and apps
Companies like MoneyLion, Earnin, and Dave offer short-term loans that can be used for any purpose, including covering expenses while waiting for a tax refund. These are not tax-specific products — they are general personal loans — but they work the same way: you borrow money now and repay it from your refund or your next paycheck. Some of these companies charge a subscription fee rather than a flat loan fee, which can be cheaper or more expensive depending on how long you keep the loan.
These standalone lenders typically do not require you to file your taxes with them. You read their app, provide bank information and income details, and request a loan. The approval process is usually faster than with tax prep companies because they do not need to see your actual tax return — they estimate based on your income history. However, they may charge higher fees or interest rates than tax preparation companies do.
Banks and credit unions offering advances
Some banks and credit unions offer tax refund advances, though the availability is narrower than with tax prep companies. A few banks partner with tax software providers to offer advances to their customers. Credit unions sometimes offer them as a member benefit, particularly if you have direct deposit set up with them. The terms and fees vary widely, so it is worth asking your bank or credit union directly whether they offer this product.
The advantage of going through your own bank or credit union is that they already have your account information and may charge lower fees than third-party lenders. The disadvantage is that fewer institutions offer the product, and you may have fewer options if your bank does not participate.
What to compare when choosing a provider
The main costs to compare are the loan fee and any additional charges. Most tax refund advances charge a flat fee ranging from around $30 to $150, depending on the loan amount and the lender. Some lenders also charge interest on top of the fee. Read the terms carefully to see whether the fee is deducted from the loan amount you receive or charged separately.
Also compare how long the money takes to arrive. Most online lenders deposit within one to three business days, but some are faster. Check whether the lender requires you to file your taxes with them or whether you can file elsewhere and still use their advance product. Finally, look at what happens if your actual refund is smaller than expected — some lenders will forgive the difference, while others will ask you to repay it.
How the repayment process works
When you take out a tax refund advance, the lender typically sets up an arrangement with the IRS or your tax preparer to intercept your refund when it arrives. The IRS sends your refund to the lender instead of to you, and the lender deducts what you owe them before sending you the remainder. This is called a refund offset or refund intercept.
Some lenders instead ask you to repay them directly from your bank account once your refund arrives. In this case, you receive your full refund from the IRS and then transfer the loan repayment to the lender yourself. The advantage is that you see your full refund amount. The disadvantage is that you have to remember to make the payment, and if you do not, the lender may pursue collection.
Red flags and things to avoid
Be cautious of any lender that guarantees approval or promises a specific refund amount. No one can may provide what the IRS will refund you — that depends on your actual tax situation. Also avoid lenders that ask you to pay an upfront fee before they will process your loan. Legitimate lenders deduct their fees from the loan amount or from your refund.
Check whether the lender is licensed to operate in your state. Some states regulate short-term lenders more strictly than others, and operating without a license is a warning sign. Read reviews from other customers, but remember that people are more likely to leave reviews when they are angry, so take extreme negative reviews with some skepticism. Look for complaints about hidden fees or difficulty getting refunds.
Frequently Asked Questions
Can I get a tax refund advance without filing my taxes first?
Most lenders want to see your tax information before approving an advance, but the process varies. Tax prep companies require you to file with them first. Standalone lenders like Earnin may approve based on income history alone. You will need to provide some documentation of your expected refund or income to any lender.
What if I owe taxes instead of getting a refund?
You cannot get a refund advance if you owe taxes. The advance is based on the assumption that you will receive money back from the IRS. If your return shows you owe, you are not may be able to access for this product.
Do I have to file my taxes with the same company that gives me the advance?
Not always. Tax prep companies require you to file with them to get their advance. Standalone lenders do not — you can file your taxes anywhere and still use their loan product. Check the lender's terms to see whether they require you to file with them or whether you have a choice.
What happens if my actual refund is less than the advance I took?
This depends on the lender's terms. Some lenders will forgive the difference and take whatever refund arrives. Others will ask you to repay the shortfall from your own money. Read the loan agreement carefully to see which applies to your lender.
Is a tax refund advance the same as a payday loan?
They are similar in that both are short-term loans with fees, but they work differently. A payday loan is based on your next paycheck. A refund advance is based on your expected tax refund. Refund advances typically have lower fees because the lender knows the money is coming from the government.