TurboTax Refund Advance Loan Review

Loans range from $250 to $2,000 and are based on your expected federal tax refund. Many predatory lenders will market personal loans as refund advances during tax season, but they’ll charge excessive interest rates and fees. The options outlined here are free, though you might be required to pay for tax preparation prior to applying for the loan and ATM fees to get cash off the refund debit card. Of course, if you don’t meet TurboTax’s requirements or prefer using different tax software, there are alternatives to a refund advance loan.

Licenses and Registrations for Refund Advance

The IRS processes paper returns and issues refunds in about six to eight weeks. If you e-file and choose to receive your refund via direct deposit, you can have your refund in your account in less than three weeks. The IRS is limiting the number of direct deposits that go into a single bank account or prepaid debit card to three tax refunds per year. In addition, for a small number of returns, the IRS decides there may be indications that the bank account on the return is suspicious and they may decide to issue a check instead. A tax refund advance is a short-term loan that gives you access to your cash sooner than the IRS or your state tax agency can get it to you. If you’re approved, you can get a lump sum loaded onto a debit card or deposited in your bank account, usually the same day.

States Where Billionaires like Jeff Bezos Pay the Least Taxes

TurboTax wants to help relieve the stress of waiting and with Refund Advance† you could get $250 – $4,000 instantly after the IRS accepts your return. In fact, 70% of our customers receive funds within 30 seconds of IRS e-file acceptance1. TurboTax said previously that nearly all the filers affected by its mistake were using its desktop software. If you don’t expect a refund from the IRS, you shouldn’t apply. “If the taxpayer owes governmental debt or student loan debt, they may be subject to an IRS offset,” says a Liberty Tax spokeswoman.

How Much Money Gets Taken Out of Paychecks in Every State

1. This Refund Advance offer expires on February 29, 2024, or the date that available funds have been exhausted, whichever comes first.
2. You might also pay to access your refund, because some of the offers require you to put the advance on a prepaid debit card.
3. The Emerald Advance loan is available through December 2023.
4. In paying a tax preparer just to get the advance, you’re basically paying to access your own money.
5. With this option, your refund, when it’s issued, is automatically deposited into a dedicated account, where the tax-prep company takes out the refund advance and fees that you owe.

If you are receiving a federal refund of $500 or more, you could be eligible for a Refund Advance, a loan provided by First Century Bank, N.A., Member FDIC, not affiliated with MVB Bank, Inc., Member FDIC. Refund Advance is a loan based upon your anticipated refund and is not the refund itself. Availability of the Refund Advance is subject to satisfaction of identity verification, certain security requirements, eligibility criteria, and underwriting standards. This Refund Advance offer expires on February 29, 2024, or the date that available funds have been exhausted, whichever comes first. Offer, eligibility, and availability subject to change without further notice. 5 – Connecting a paycheck or direct depositing a one time total of at least $750 in a single calendar month is required for activation.

• To receive your money when you earn it rather than deferring it until you receive a tax refund, file Form W-4, Employee’s Withholding Certificate with your employer to adjust your withholding. 100% accurate calculations, audit support, and your max refund. If you don’t expect to get a refund that covers your needs, or you want more time to repay the funds, consider getting a loan with an online lender that offers fast funding. The tax preparer will automatically deduct the loan amount, plus any interest, from your refund when the IRS releases it.

With TurboTax Live Full Service, a local expert matched to your unique situation will do your taxes for you start to finish. Or, get unlimited help and advice from tax experts while you do your taxes with TurboTax Live Assisted. And if you want to file your own taxes, you can still feel confident you’ll do them right with TurboTax as we guide you step by step. No matter which way you file, we guarantee 100% accuracy and your maximum refund.

Intuit TurboTax’s zero-interest Refund Advance loan is funded by First Century Bank. Unlike other tax preparers, TurboTax allows customers to apply online. If approved, borrowers must open a Credit Karma Money checking account to access the loan. Some loans can be dispersed within 24 hours on a prepaid card or within a few days as a direct deposit to a bank account. A bank that works with the tax company lends you the money, which is usually loaded onto a new prepaid card. When you receive your tax refund, the advance amount is automatically deducted from your refund and funneled to that bank, effectively paying back your loan for you.

Some of the reasons it may take longer include incomplete information, an error, or the IRS may need to review it further. Business Insider named H&R Block the best tax software in 2021. Its offerings cater to a wide variety of tax situations at a reasonable price point, and its user interface is modern with easy-to-follow instructions. GOBankingRates’ editorial team is committed to bringing you unbiased reviews and information.

Loan apps provide a low- or no-fee advance on your paycheck. You can typically borrow up to a few hundred dollars, and the app will withdraw the advance amount from your bank account on your next payday. However, loan apps may charge a subscription fee, a fee to get funds faster or ask for an optional tip. These apps can be helpful if you need funds quickly, but they aren’t a long-term solution. Habitual refunds can play costly games with your mind—and short-circuit meaningful tax planning. A huge refund may feel like a heavenly windfall, but what it really means is that you probably overpaid thousands—maybe tens of thousands—of dollars in taxes and simply recouped your own money.

The payment for your account couldn’t be processed or you’ve canceled your account with us. Security Certification of the TurboTax Online application has been performed by C-Level Security. See when your return is accepted and when you can expect your refund. For Early Refund Advance Loans of $1,000, the minimum refund is $2,600. Jackson Hewitt did not specify minimums for other loan amounts.

While an advance can be a way to get cash quickly, it may be cheaper to wait for the IRS to send your refund directly to you. “We truly apologize for any inconvenience this might have caused and want to say thanks for being part of the TurboTax family,” the service told customers in messages sent out beginning Monday. It aims to notify everyone affected by its mistake by May 14.

TurboTax also states that there’s a possibility funds for the loans might run out before then. No-fee refund advance loans are available to filers who are 18 or older at H&R Block Tax Software, TurboTax, and Jackson Hewitt. Luckily there’s an option https://turbo-tax.org/ for anyone who’s expecting a refund and doesn’t want to wait. A few popular online tax preparers can help you get access to part of your tax refund on the same day you file. Qualification can depend on the amount of your expected refund.

A tax refund loan is a short-term loan you can take out through a tax preparer when you’re anticipating a refund. It allows you to access your refund early, and the loan is deducted from your refund once it’s issued. Let’s say you get a $500 tax refund loan against your refund that arrives a month later.

• Decreasing your expected tax refund can be an incentive to make better tax planning decisions throughout the year and work hard to lower the amount of tax you owe. If you qualify, you can receive a portion of your anticipated refund — between $250 and $4,000 — once the IRS accepts turbo tax advance refund your return. Read on to learn how this program works and who qualifies for it. TurboTax calculations are 100% accurate so your taxes will be done right, guaranteed, or we’ll pay you any IRS penalties. We believe everyone should be able to make financial decisions with confidence.

Some of the tax refund advances—notably Jackson Hewitt’s Go Big Refund Advance and higher-sum Easy Advances from Liberty Tax—do charge interest, up to nearly 36 percent. And while the time period during which you’ll pay that interest is likely to be short—just until your refund comes—it still means you’ll owe more to the company than you borrowed. Jackson Hewitt says it won’t charge interest for longer than 45 days, and notes that most clients get their refund and can pay back their loans within 24 days. But even a 24-day Go Big Refund Advance would cost $47.21 on a $2,000 loan, the company acknowledges.

If you expect money back from the IRS this tax season and you’re looking for a fast way to get cash, a tax refund advance could work for you. H&R Block Tax Software and TurboTax, (in partnership with Credit Karma Money) offer refund advance loans from early January through various dates in February. In addition to that, Jackson Hewitt also offers an early refund advance option starting mid-December through mid-January. All features, services, support, prices, offers, terms and conditions are subject to change without notice. Simply put, this is just one of the many perks TurboTax offers exclusively to our customers. Tool will not give you a date until your tax return is received, and processed, and your tax refund is approved by the IRS.

TurboTax incorrectly recommended that some Oregon filers take the standard state tax deduction even in cases when they could save money by itemizing their deduction. • Receiving a huge refund can cause you to overlook the tax consequences of your financial choices during the year, such as deciding which stocks to sell or whether to buy a rental property. “It’s important to know up front what fees might be assessed,” says Suzanne Martindale, Consumer Reports’ senior policy counsel. The additional costs could erode your refund bit by bit, she explains. “An advance could help someone avoid severe financial setbacks,” McClary says.

The Early Refund Advance loan, which has a 35.53% annual percentage rate, is available starting in December 2023, while the No Fee Refund Advance loan, with a 0% APR, is available in January 2024. If your loan is not paid in full, you will not be eligible to receive a Refund Advance loan in the future. This year you can get up to $4,000 with $0 loan fees and 0% APR. If you’re one of the nearly 75 percent of Americans who get a tax refund year after year, we can show you how to keep the good times rolling. With a little effort, you can start getting next year’s refund starting next pay day.

If you pay an $89 tax prep fee to file your taxes, the fee is equivalent to an annual percentage rate of 217%. Although, if you were going to pay for tax prep anyway, you might value the loan differently. While a tax refund loan may have zero-interest, tax preparation fees can vary depending on the complexity of the return. Tax preparers typically require borrowers to file their taxes with them, which can come with a fee. In paying a tax preparer just to get the advance, you’re basically paying to access your own money.

TurboTax will submit your return once the IRS starts accepting tax returns, which in recent years has been in late January. If approved, you can set up your account to use your Turbo Card information to shop online anywhere Visa is accepted. But you’ll have to wait five to 10 business days for the card to arrive in the mail. If you want more money in your paycheck but are worried about getting hit with a surprise bill at tax time, try our free W-4 Salary Calculator.

The main requirement in all cases is that you must get your taxes done by the company offering the refund advance. To apply for an advance from the big three storefront companies, you’ll need to go to the tax preparer’s office. With TaxSlayer and TurboTax, which have no brick-and-mortar presence, you handle the application process online. For instance, the amount of the advance you can get depends on which tax preparer you use and how big a refund you’re expecting, among other factors. H&R Block is offering advances of up to $3,000 per federal tax return. Jackson Hewitt will offer up to $7,000, and Liberty Tax offers as much as $6,250.

You could get funds in seconds, most customers receive funds within 4 minutes of acceptance. The error affected more than 12,000 Oregon tax filers, according to information TurboTax’s parent company, Intuit, provided to the state Department of Revenue. The tax-prep companies told us you’re not on the hook if your refund turns out to be less than the advance you received.

Tax preparers may have a minimum refund amount requirement to qualify, and you may get only a portion of your expected refund in advance. A tax refund loan is an option if you need money quickly, but you can save on fees if you’re willing to wait. The IRS partners with tax preparers to offer a free filing option for those who meet the income requirement. It can take three to eight weeks to receive your tax refund, depending on how you file.