Expecting a tax refund from the IRS? You may not have to wait for the IRS to process your return and mail you a direct deposit or check.
If the tax advisory service you use offers tax refund loans, you could get an interest-free advance on your money. These loans are easy to qualify for and usually do not require a credit check. However, they might not make sense considering that you might have to spend money to access funds that are yours.
What is a tax refund loan?
Tax refund loans are available to taxpayers who have filed a federal income tax return and are eligible for a refund. These lending products are generally priced for a set amount between $200 and $6,000 and are offered between January and late February.
How do tax refund loans work?
When filing your tax return, you can apply for a tax refund loan if offered by the tax preparation service. If approved, the money is paid out by check or loaded onto a prepaid card. The financing time depends on the lender and how you choose to receive the loan proceeds.
However, you will not repay the lender or the company offering the loan. Instead it will be deducted from your refund before it is sent to you.
Where can I get tax refund loans?
H&R block
The H&R Block Refund Advance loan is offered to customers through MetaBank. You can apply without affecting your credit score, and you pay no lender fees or interest.
| Minimum amount of federal tax refund |
$250 |
| tax preparation fee |
Starts at $80 when filing with a tax advisor (additional fee applies for state tax returns) |
| Early repayment of advance loan amounts |
Not applicable |
| No fee refund advance loan amounts |
$250, $500, $750, $1,250 and $3,500 |
| Time to Funding |
Already on the same day |
| meeting |
February 28, 2022 |
| requirements |
Be at least 18 years old and file your tax return with a tax expert at an H&R office |
Turbo tax from Intuit
The Refund Advance from Intuit Turbo Tax is also a no-fee, interest-free loan product. It is offered through First Century Bank for applicants using Turbo Tax.
| Minimum amount of federal tax refund |
$500 |
| tax preparation fee |
No fee for basic federal and state tax returns (valid until 3/31/2022) |
| Early repayment of advance loan amounts |
Not applicable |
| No fee refund advance loan amounts |
$250, $500, $750, $1,000, $1,500, $2,000, $2,500, $3,000, $3,500 and $4,000 |
| Time to Funding |
Already one hour after accepting the IRS-E file |
| meeting |
February 15, 2022 |
| requirements | You must be at least 18 years old and not live in Connecticut, Illinois or North Carolina. You must file your tax return with TurboTax via email and report income on a Form W-2, Schedule C, Schedule CEZ, or 1099-R. You cannot file IRS Forms 1040PR, 1040SS, 1040X, 1310, 4852, 4684, 4868, 8862, or 8888. |
Jackson Hewitt
Jackson Hewitt offers two Refund Advance loan products, both underwritten by MetaBank. The Early Refund Advance Loan is subject to an APR of 35.9 percent, or you can get a No-Fee Refund Advance Loan without paying interest or fees.
| Minimum amount of federal tax refund |
$500 |
| tax preparation fee |
Not revealed |
| Early repayment of advance loan amounts |
$200, $500, $1,000 |
| No fee refund advance loan amounts |
$500, $750, $1,000, $1,500, $3,500 |
| Time to Funding |
Within minutes for the Serve® prepaid debit card. Direct deposit takes 1-5 business days. |
| meeting |
February 20, 2022 |
| requirements | You must be at least 18 years old and submit your return by email to Jackson Hewitt or kiosks at Walmart stores. You must also have a satisfactory payment history with the IRS and other federal and state agencies (e.g., Child Support Enforcement, Department of Education). |
Should You Get a Tax Refund Loan?
It depends on your financial situation. You could get instant cash to deal with an unexpected financial emergency, pay off high-interest debt, make a big purchase, or use whatever you see fit.
Still, a tax refund loan can cost you a significant amount if the lender charges fees and you’re essentially paying to borrow your own money. And if your refund is delayed or denied, there are unresolved tax issues, or you’re paying back taxes, you could be stuck with a heavy debt load. So it may be worth waiting for the IRS to process your refund.
Alternatives to the tax refund loan
If you’d rather explore other options or don’t get a refund but need cash, these alternatives might work for you:
- Online Loans: Use an online loan marketplace to find personal loan products with competitive rates. Term personal loans are payable in equal monthly installments over a set period of time, usually between three and five years.
- Short-term emergency loans: Acting as payday alternatives, these loans can get you cash fast without costing you a fortune in interest. Some lenders do not check your credit when you apply, so you may be approved even if your credit does not meet the requirements.
These online lenders offer quick financing if you need cash now.
|
lender |
loan amount |
APR |
minimum credit rating |
Time to Funding |
|---|---|---|---|---|
|
avant |
$2,000 – $55,000 |
9.95% – 35.99% |
580 |
Already after one working day |
|
LendingPoint |
$2,000 – $36,500 |
9.99% – 35.99% |
590 |
Already after one working day |
|
One Main Financial |
$1,500 – $20,000 |
18% – 35.99% |
No information |
One day |
|
Thrive |
$2,000 – $40,000 |
7.95% – 35.99% |
640 |
Already after one working day |
|
Update |
$1,000 – $50,000 |
5.94% – 35.97% (with automatic payment) |
No information |
One day |
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