The lenders who offer refund anticipation loans
Tax preparation companies and banks offer refund anticipation loans, but the field is smaller than it was ten years ago. The main providers are H&R Block, Jackson Hewitt, Liberty Tax, and a handful of regional banks. Some online tax software companies like TurboTax partner with lenders to make these loans available through their platforms. A few credit unions also offer them, though you typically need to be a member first.
The lender is not the IRS. The IRS does not lend money against your refund. Instead, a private lender gives you cash now based on your expected refund amount, and when the IRS deposits your refund, it goes to the lender first to repay the loan plus fees. You are borrowing from a company, not from the government.
The companies that offer these loans make money from fees, not interest rates. A typical fee ranges from $50 to $300 depending on the loan size and the lender, though some charge a percentage of the loan amount instead. The fee is deducted from your refund or added to the loan balance you owe.
Key Takeaways
- Tax preparation chains like H&R Block and Jackson Hewitt are the most common sources, often offering loans to customers who file taxes through them.
- Banks and credit unions offer refund anticipation loans, but banks typically require you to have an account with them and credit unions require membership.
- Online tax software platforms partner with lenders to offer these loans, making them available without visiting a physical location.
- Fees typically range from $50 to $300 and are charged by the lender, not the IRS, and are deducted from your refund when it arrives.
- The loan is repaid automatically when your refund is deposited, so you do not make monthly payments.
Tax preparation companies and their loan programs
H&R Block offers a Refund Advance loan through its tax preparation service. You file your taxes with H&R Block, and if you meet their requirements, you can borrow against your expected refund the same day. The loan amount depends on what H&R Block estimates your refund will be, and the fee is typically $50 to $150. The refund is deposited into an H&R Block account they set up for you, and the loan is repaid from that deposit.
Jackson Hewitt offers a similar product called a Refund Advance Loan. You file through Jackson Hewitt, and the company estimates your refund and offers you a loan on the spot. Fees are comparable to H&R Block. Liberty Tax also offers refund loans to customers who file through their offices.
These companies benefit from having you file taxes with them because they see your actual tax documents and can verify the refund amount more accurately. If you use their tax preparation service, asking about a refund loan is straightforward—they will mention it during the filing process if you are may be able to access.
Banks and credit unions that lend against refunds
Some banks offer refund anticipation loans, but usually only to existing account holders. You typically need to have a checking account with the bank, and the bank uses your account history and the tax documents you provide to decide whether to lend. The loan is deposited into your account, and when your refund arrives, it is automatically transferred to repay the loan.
Credit unions sometimes offer these loans to members, and the terms are often better than tax preparation companies charge—lower fees and sometimes a lower loan amount threshold. However, you must be a member first, which usually requires living or working in a specific area or belonging to a particular employer or organization.
To find out whether your bank or credit union offers refund loans, call the branch directly or log into your online account and look for "refund advance" or "tax refund loan" in the products section. Many banks do not advertise these loans heavily, so you may need to ask.
Online tax software and third-party lenders
TurboTax, TaxAct, and other online tax software platforms partner with lenders to offer refund anticipation loans. When you file your taxes through these platforms, you will see an option to borrow against your refund. The lender is a third-party bank, not the software company itself, but the software company handles the process and coordinates with the lender.
The advantage of this route is convenience—you file your taxes and get a loan offer in the same session, without visiting a tax office. The disadvantage is that you have less direct contact with the lender. If something goes wrong with the loan or the refund deposit, you may need to contact the software company first, which then contacts the lender on your behalf.
Fees through online platforms are typically $50 to $200, depending on the loan size. Read the fee disclosure carefully before accepting the loan, because it will be deducted from your refund.
What lenders require before they will lend
All refund anticipation lenders require the same basic documents: your completed tax return (usually Form 1040 and any schedules), your Social Security number, and a valid ID. Some lenders also require proof of income, such as recent pay stubs, though this is less common if you are filing through a tax preparation company that has already verified your information.
Lenders will check your credit, but most do not require a high credit score. The loan is secured by your refund, so the lender's risk is lower than with an unsecured personal loan. However, if you have a history of unpaid debts or fraud, a lender may decline you.
You must also provide your bank account information so the lender can deposit the loan and later withdraw the repayment when your refund arrives. If you do not have a bank account, some lenders will set one up for you as part of the loan process, though this adds complexity and sometimes a small fee.
Comparing costs across different lenders
The fee structure varies slightly by lender, so it is worth comparing before you borrow. A $3,000 refund with a $100 fee costs you 3.3 percent of the refund. The same refund with a $200 fee costs 6.7 percent. Over the course of a few weeks (the typical time until your refund arrives), that difference adds up.
Some lenders charge a flat fee regardless of loan size. Others charge a percentage of the loan amount, which means larger refunds cost more in absolute dollars but may cost less as a percentage. A few lenders offer tiered fees—a lower fee for smaller loans and a higher fee for larger ones.
The fastest way to compare is to contact two or three lenders directly with your estimated refund amount and ask for their fee. Most will give you a quote over the phone or online without requiring a full process. Write down the fee and the timeline (how long until you get the money), and choose based on which combination works best for your situation.
Frequently Asked Questions
Can I get a refund loan if I file my taxes myself without a tax preparation company?
Yes, but your options are more limited. Banks and credit unions are your best bet if you have an account or membership. Online tax software platforms also work—you file through them and they connect you with a lender. Tax preparation companies are harder to use if you have already filed on your own, though some will still offer a loan if you bring them your completed return.
What happens if my refund is smaller than the lender expected?
The lender's estimate is based on the information you provide on your tax return. If your actual refund is smaller, you still owe the full loan amount plus fees. The difference comes out of your bank account. This is rare but can happen if you made an error on your return or if the IRS adjusts your refund for any reason. Always double-check your return before accepting the loan.
Can I get a refund loan if I owe back taxes or child support?
No. If you owe back taxes, the IRS will intercept your refund to pay what you owe. If you owe child support, the state may intercept it. A lender will not lend against a refund they know will be intercepted. You must resolve these debts before a lender will work with you, or disclose them upfront so the lender can account for them in the loan amount.
How long does it take to get the money after I explore?
If you explore in person at a tax preparation office, you can often get the money the same day or within 24 hours. Online applications typically take one to three business days for approval and funding. The lender will tell you the timeline when you explore. The loan is repaid automatically when your refund arrives, which is usually within two to three weeks of filing.
What if I do not want the loan after I have applied?
Most lenders allow you to cancel within a short window—usually 24 to 48 hours—without penalty. After that window closes, you are obligated to repay the loan when your refund arrives. Read the cancellation policy before you sign, because it varies by lender.