TurboTax ended its refund advance program in 2021

TurboTax offered a product called a refund advance (sometimes called a refund anticipation loan or RAL) for many years. This was a short-term loan that gave you money before the IRS processed your tax return — usually within one to three business days instead of waiting weeks. TurboTax stopped offering this product in 2021 and has not brought it back.

The reason was straightforward economics. Refund advances were expensive for the people who used them. You paid a fee (often $50 to $200 depending on the loan size) to borrow money that was already yours, waiting in the IRS system. As tax filing became faster and the IRS began processing returns more quickly, the product made less sense. Fewer people wanted to pay a fee for a service that was no longer solving a real problem.

If you filed with TurboTax and were counting on a refund advance, you have other options that may cost less or nothing at all.

Key Takeaways

  • TurboTax discontinued refund advances in 2021 because the fees were high relative to how fast the IRS now processes returns.
  • The IRS typically deposits refunds within 21 days if you file electronically and choose direct deposit, which is free.
  • Some banks and credit unions offer rapid refund programs that work similarly to the old TurboTax product but may have lower fees or be free for account holders.
  • If you need money before your refund arrives, a personal line of credit or a small loan from your bank may cost less than a refund advance did.
  • Some tax software companies still offer refund advances, though the fees and terms vary widely.

How fast the IRS actually processes refunds now

When refund advances were popular, the IRS took six to eight weeks to mail a paper check. That made a two-week loan feel worth the fee. Today, if you file electronically and choose direct deposit (which is free), the IRS deposits most refunds within 21 days. Many arrive in 10 to 14 days.

This speed improvement is one reason TurboTax stopped offering the product. The gap between when you filed and when you got your money shrank so much that paying $50 to $200 for a loan stopped making financial sense for most people. You were paying a large fee to skip waiting a couple of weeks.

Check the IRS website or your online IRS account to track your refund in real time. You can see the exact deposit date once the IRS has processed your return.

Rapid refund programs from banks and credit unions

Some financial institutions offer their own version of a refund advance. These programs go by different names — rapid refund, refund transfer, or tax refund loan — but they work the same way: you get money before the IRS deposits your refund.

The cost and speed vary. Some banks charge $0 to $50 if you are an account holder. Others charge $100 or more. Some deposit the money the same day you file; others take a few business days. Call your bank or credit union and ask whether they offer this service and what the fee is. If you have been with them for a while, they may offer it free or at a discount.

This option only works if you have a bank account and can may have access to for the loan. The lender will verify your identity and check that your tax return is real before sending money.

Other tax software companies that still offer refund advances

TurboTax is not the only company that offered this product, and some competitors still do. H&R Block, Jackson Hewitt, and Liberty Tax have offered refund advances or similar products in recent years. Fees, speed, and availability change from year to year and vary by state.

If you want to explore this option, search for the tax software company's current offerings or call their customer service line. Be prepared for fees in the $50 to $200 range, and read the terms carefully. Some programs charge extra if you want the money deposited the same day.

Keep in mind that these products are loans, not information programs. You are borrowing against a refund that the IRS will eventually send. The lender takes a fee for the speed and the risk that your return might be rejected or reduced.

Personal loans and lines of credit as alternatives

If you need cash before your refund arrives and a refund advance is not available or too expensive, a personal loan or line of credit from your bank may be cheaper. Personal loans typically charge interest based on your credit score and the loan amount, but the total cost is often lower than a refund advance fee if you only need the money for a few weeks.

A line of credit is a pool of money you can borrow from whenever you need it, and you only pay interest on what you actually use. This can be cheaper than a loan if you are not sure how much you need. Ask your bank what rates and terms they offer.

Compare the total cost: a $500 refund advance fee versus the interest on a $500 personal loan for three weeks. The loan may be cheaper, especially if you have decent credit.

Why refund advances were expensive in the first place

A refund advance was a high-fee product because it was high-risk for the lender. The IRS could reject your return, reduce your refund because of unpaid taxes or child support, or take part of it to pay off federal student loans. If any of that happened, the lender had lent you money that was not coming back.

The lender also had to process your process, verify your identity, and deposit money within hours or days — all expensive operations. Those costs got passed to you as a fee.

This is why refund advances have always been more expensive than waiting for your refund or taking out a regular personal loan. You were paying for speed and the lender's risk.

What to do if you filed with TurboTax and need money now

If you have already filed your taxes with TurboTax and need cash before your refund arrives, your options are: wait for the IRS to deposit your refund (usually within 21 days), ask your bank about a rapid refund program, take out a personal loan, or use a line of credit.

Do not pay a refund advance fee if you can avoid it. The IRS is faster now than it was when these products were popular. In most cases, waiting two to three weeks costs you nothing and saves you $50 to $200.

If you absolutely need the money sooner, call your bank first. They may offer a refund program at a lower cost than a third-party lender, especially if you have been an account holder for a while.

Frequently Asked Questions

Can I still get a refund advance from TurboTax?

No. TurboTax discontinued this product in 2021 and has not offered it since. If you need money before your refund arrives, you will need to use a different option, such as a rapid refund program from your bank or a personal loan.

How long does the IRS actually take to deposit a refund?

If you file electronically and choose direct deposit, most refunds arrive within 21 days. Many arrive in 10 to 14 days. You can track your refund on the IRS website or in your online IRS account to see the exact deposit date.

Is a refund advance the same as a refund transfer?

They are similar but not identical. A refund advance is a loan you repay from your refund. A refund transfer is a fee you pay to have your refund deposited into a temporary account, then transferred to your bank account. Both cost money, and both are ways to get your refund faster than waiting for the IRS.

What if the IRS reduces my refund after I take out a refund advance?

This is one reason refund advances are risky. If the IRS reduces your refund because of unpaid taxes, child support, or federal student loans, you still owe the lender the full loan amount. You would have to pay the difference out of pocket. This is why lenders charge high fees — they are protecting themselves against this risk.

Are there refund advance programs that do not charge a fee?

Some banks and credit unions offer free or low-cost rapid refund programs for account holders. Call your bank and ask. Otherwise, most refund advances charge $50 to $200. If you can wait 21 days for the IRS to deposit your refund, that is always the cheapest option.