TurboTax does not offer refund advances directly, but it partners with third-party lenders who do

When you file your taxes through TurboTax, you may see an option to get money before the IRS sends your refund. This is not TurboTax lending you money — it is a separate loan from a bank or financial company that TurboTax has partnered with. The lender reviews your return, decides whether to lend, and if approved, deposits cash into your account within one to two business days. You repay the loan when your actual refund arrives at the IRS.

The lenders change year to year and vary by state. Common partners have included Pathward, MetaBank, and Bancorp Bank, though you should check which lender TurboTax is working with in the current tax year. The loan itself is optional — you can file through TurboTax and wait for your refund the normal way without taking any advance.

Key Takeaways

  • Refund advances through TurboTax are loans from third-party lenders, not from TurboTax or the IRS, and you must repay them when your refund arrives.
  • Fees for these loans typically range from $0 to around $15 depending on the lender and your state, though some states prohibit them entirely.
  • The loan is approved and funded based on your tax return information, and money usually reaches your account within one to two business days if approved.
  • You can decline the advance and wait for your refund through normal IRS processing, which takes 21 days or longer depending on how you file and receive your refund.

How the loan process works when you file with TurboTax

During the filing process, TurboTax will show you an offer for a refund advance after you have entered your income and deductions. The offer appears as an optional step — you can skip it and proceed to file without it. If you choose to continue, you enter your banking information and the lender pulls data directly from your return to make a quick decision.

The lender is looking at your expected refund amount, your income, and your banking history. They are not running a traditional credit check, so a low credit score does not automatically disqualify you. However, they may decline if your refund is very small, if your account shows signs of fraud, or if you live in a state where these loans are restricted. Approval or denial usually comes within minutes.

If approved, the lender deposits the loan amount into the bank account you provided. This is the full refund amount minus the loan fee. When your actual refund arrives from the IRS, it goes to the same account and the lender automatically deducts what you owe them, keeping the fee as their payment.

Fees and what they depend on

Refund advance loans are not free. The fee typically ranges from $0 to around $15, though the exact amount depends on which lender TurboTax is partnering with that year and which state you live in. Some lenders charge a flat fee; others charge a percentage of the loan. A few states — including New York and some others — prohibit these loans entirely, so residents of those states will not see the option.

TurboTax does not set the fee; the lender does. You will see the fee amount before you agree to the loan, so you can decide whether it is worth paying to get your money faster. If your refund is $500 and the fee is $15, you are paying 3 percent to receive the money in one or two days instead of waiting three weeks or longer.

How long the IRS takes to send your actual refund

The IRS says it will issue most refunds within 21 days of receiving your return. That timeline assumes you filed electronically and chose direct deposit. If you filed on paper or requested a check, add another week or two. If there are errors on your return or the IRS needs to verify information, the wait stretches to several weeks or months.

A refund advance loan lets you skip that wait. You get the money in one or two days, and when the IRS sends your refund, the lender takes their cut and you keep the rest. The trade-off is the fee and the fact that you are borrowing against money that is already yours — you are paying to access your own refund early.

When a refund advance makes sense and when it does not

A refund advance is useful if you need cash when ready and the fee is small relative to your refund. If you are expecting $2,000 back and the fee is $10, the math is straightforward. If you are expecting $300 back and the fee is $15, you are giving up 5 percent of your refund to speed up the process by two weeks — a decision only you can make based on your situation.

The advance does not make sense if you can wait. The IRS will send your refund for free if you have patience. It also does not make sense if you live in a state where these loans are prohibited or if the lender declines you. In those cases, you straightforward file through TurboTax and wait for the normal refund process.

What happens if the IRS delays or reduces your refund

If you take a refund advance and the IRS later reduces your refund — because they found an error, because you owe back taxes, or because of a wage garnishment — you still owe the lender the full loan amount. The lender does not absorb the loss. This is rare, but it is a real risk: you could receive a $2,000 advance, then the IRS sends only $1,500, and you owe the lender $2,000 plus the fee.

Before you take an advance, make sure your return is accurate. Double-check your income figures, your deductions, and any credits you are claiming. The lender is betting that the IRS will send what your return says it will, and if that does not happen, you are on the hook.

Alternatives to refund advances

If you need cash before your refund arrives, you have other options. A personal loan from a bank or credit union may have a lower rate than the refund advance fee, especially if you have good credit. A credit card cash advance is usually more expensive. A payday loan is typically much more expensive and should be avoided.

The simplest alternative is to wait. If you can manage without the money for two to three weeks, the IRS will send your refund for free. Many people file early in the tax season specifically to get their refund sooner without paying a fee.

Frequently Asked Questions

Can I get a refund advance if I have bad credit?

Yes. Refund advance lenders do not run traditional credit checks. They look at your expected refund and your banking history instead. However, they may still decline you if your refund is very small, if your account shows fraud signals, or if you live in a state where these loans are prohibited.

What if the lender declines my advance?

You straightforward file your return through TurboTax and wait for your refund from the IRS. Declining the advance does not affect your ability to file or receive your refund — it just means you will not get the money early.

Do I have to use TurboTax's lender, or can I get a refund advance elsewhere?

You can get a refund advance from other tax software companies or directly from some banks and lenders. The terms and fees vary. TurboTax's partners are one option, but not the only one.

If I take a refund advance, does it affect my actual refund from the IRS?

No. The IRS does not know you took an advance. Your refund amount stays the same. The lender straightforward deducts what you owe them from the refund when it arrives.

Can I cancel a refund advance after I have agreed to it?

This depends on the lender and your state. Some lenders allow cancellation within a short window after approval. Check the terms the lender provides before you agree, or contact them when ready if you change your mind.