Tax Refund Loans: How To Get an Advance in 2025
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Allison Hache
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Emily Gadd
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A tax refund loan also known as a refund advance is a short-term loan issued by banks and tax preparation companies. These loans are secured by the borrower’s anticipated tax refund. For that reason, the loan amount doesn’t exceed the refund amount.
They can be useful for people who need a little extra cash after they file their taxes and can’t wait for their refund to arrive.
How Tax Refund Advance Loans Work
There may be some differences based on the lender, but generally:
- If you go through a tax prep software, you will have to file your refund using their software
- You’ll receive your advance once your return has been accepted
- Once refund is issued, it will go directly to the lender
- If there’s any money left over, it will be issued to you
- If less than you expected, you will have to pay the lender the difference
Where To Get a Tax Refund Advance Loan
The most common place to get a tax refund advance loan is through a tax preparation service or company. Keep in mind that fees apply and annual percentage rates, or APRs, expected refunds and product features will vary by company when you get this loan.
| Tax Preparation Company | Loan Amount | Fees and Interest |
|---|---|---|
| Intuit TurboTax | Up to 50% of your anticipated refund | None, but you must use a Credit Karma checking account |
| H&R Block | – Emerald Advance: up to $1,300 – Refund Advance: currently not available |
– 35.90% APR – $30 late fee plus interest – Additional fees may apply |
| Liberty Tax | $500-$6,250 | Disclosed during consultation |
| Jackson Hewitt | – No Fee Refund Advance: up to $3,500 – Early Refund Advance: $100-$1,500 |
– None for No Fee Refund Advance – 35.96% APR for Early Refund Advance |
Intuit TurboTax
Intuit TurboTax offers a Refund Advance of up to 50% of your anticipated refund. You must use TurboTax to e-file your return, and you’ll also have to open a Credit Karma Money checking account — that’s where your funds are deposited once the IRS accepts your return.
The funds could be available to you within four minutes via the Credit Karma Money virtual debit card. TurboTax doesn’t charge a fee for this service.
H&R Block
H&R Block currently does not offer its Refund Advance. The only advance loan available through the company is the Emerald Advance Loan, a fixed-rate short-term loan ranging from $350 to $1,300.
Applications are open from Nov. 1 through Dec. 31. If approved, you can deposit funds into a Spruce account or Emerald Card. You must repay in full through MyBlock on or before March 31, 2025.
Liberty Tax
Liberty Tax Easy Advance loans are offered by Republic Bank & Trust in amounts ranging from $500 to $6,250. You must have your taxes prepared in person to qualify. The funds, less a finance charge, are ready within 24 hours after the IRS accepts the return.
You can apply for an Easy Advance Loan at participating locations from Jan. 2, 2025, through Feb. 28, 2025.
Jackson Hewitt
Jackson Hewitt offers two programs at participating locations: Early Refund Advance from Dec. 12, 2024, to Jan. 12, 2025, and No Fee Refund Advance from Jan. 2, 2025, to Feb. 16, 2025. While the No Fee Refund Advance also has no interest charge, this year’s Early Refund Advance borrowers have a pricey 35.96% annual percentage rate.
Pros and Cons of Tax Refund Advance Loans
Refund advance loans can be convenient, but they’re not right for everyone.
| Pros | Cons |
|---|---|
| Some refund advance loans are interest-free. | Some lenders charge fees and interest. |
| Tax preparation fees are deducted from the refund. | You have to file your tax return early. |
| These loans typically do not require a hard credit pull that can affect your credit score. | You must use the lender’s tax preparation software or service. |
| You can receive a loan against your tax refund in minutes, depending on the program terms set by the lender. | You have to pay for the tax preparation even if you don’t get a refund. |
Are Tax Refund Loans Worth It?
If you use the Earned Income Tax Credit or Additional Child Tax Credit the IRS might take longer to process your return. If your preferred tax preparation company offers this type of program, check it out. Make sure to ask them questions about capital gains tax or FICA tax rates, if that applies to your situation.
But before you agree to the loan, make sure you know how much it will cost you. Look for a program with a 0% APR loan and a minimal tax preparation fee.
When It’s Not Worth It
- If you anticipate a small tax refund or have to pay a substantial fee for the services, an advance may not be worth the cost.
- The IRS issues most refunds in less than 21 days. If you’re willing to wait, you’ll have more money in your pocket.
- If you have a type of tax software you like to use or want to work with a specific tax preparer, skipping the loan gives you more flexibility.
The Bottom Line
Make sure you really need the cash before pursuing a tax refund advance, and check rates and terms carefully before you accept the loan. Filing your taxes as early as possible can also help you get your refund faster.
FAQ
Here are the answers to some common questions about tax refund loans.- Can I get a loan on my tax refund now?
- The fastest way to get your tax refund is through a refund advance loan. Depending on the loan provider you choose, you can receive all or part of your refund minutes after the IRS accepts the return. How long it takes to receive your tax refund depends on how you file.
- However, 9 out of 10 taxpayers receive their refund less than a month after filing when they file electronically and set up a direct deposit, so the terms of a refund advance loan may not be worth it. Simply filing early is the next best option to receive your tax refund quickly.
- Can I still get an advance on my tax refund?
- The banks that issue tax refund advances set the dates when you can apply. A refund advance is a loan based on your anticipated refund, not the refund itself.
- Can I get a tax refund loan with bad credit?
- Whether or not you can get a tax refund loan with bad credit depends on the company. Some companies claim to give a tax refund loan with no credit check, while others will require a credit check.
- Additionally, the companies that do check your credit score may charge higher fees.
Josephine Nesbit, Caitlyn Moorhead and Daria Uhlig contributed to the reporting for this article.
Our in-house research team and on-site financial experts work together to create content that’s accurate, impartial, and up to date. We fact-check every single statistic, quote and fact using trusted primary resources to make sure the information we provide is correct. You can learn more about GOBankingRates’ processes and standards in our editorial policy.
- FINRA. "5 Things You Should Know About Tax Refund Loans."
- Get It Back Campaign. 2022. "What You Need to Know about Advance Loans."
- Internal Revenue Service. 2023. "Tax Season Refund Frequently Asked Questions."
- Wisconsin Department of Agriculture, Trade and Consumer Protection. "Consumer Protection Fact Sheet - Tax Refund Anticipation Loans."
