How to Get a Tax Refund Advance

Do you need your tax refund right away? With a tax refund advance loan, you could get the cash you need now while you wait for the IRS to approve and deposit your tax refund. 

What is a tax refund advance? 

Once you finish filing your taxes, you’ll know whether you owe money to the IRS or will be receiving a refund. A tax refund advance is a loan based on the refund amount you expect to get after filing. 

Sometimes, it can take up to eight weeks for your tax refund to be approved and deposited into your account. If you can't wait that long, a tax refund advance loan could help. It’ll essentially allow you to borrow your refund amount now, or at least a portion of it. 

The value of your anticipated tax refund and the lender you select will determine how much money you can borrow. In general, most tax refund loans are anywhere from $200 to $3,500. 

Keep in mind that a tax refund advance loan is a short-term financing option that you’ll typically repay when you receive tax refund. 

Where to get a tax refund advance loan 

If a tax refund advance loan sounds like something you might want, you’ll need to apply through either a tax preparation company or a Cash Advance direct lender. They’ll likely ask for your completed tax return or W-2 so they can estimate your refund amount. 

You won’t be able to borrow a tax refund advance loan if you owe money on your taxes at the end of the filing process. Lenders may also deny the loan if your refund is small, such as $100 or less. 

If you apply for the loan and get approved, you could get your money the same day or on the next business day. 

Tax preparation companies 

Many people don’t feel comfortable filing their taxes online and prefer to hire a tax professional. Tax preparation companies can take care of the filing process and provide an estimate for your refund. 

Keep in mind, however, that using a company like this will come with preparation fees in addition to any tax refund advance fees and interest. 

Cash Advance direct lender 

If you’ve already filed your taxes and know your expected refund amount, using a Cash Advance direct lender might be easier because you can complete the entire loan process online. 

Not tech-savvy? You can visit an Advance America location near you and apply in person. 

Tax refund advance alternatives from Advance America 

As a direct lender, Advance America offers multiple online loans for getting a tax refund advance. Depending on your state, you could consider a Cash Advance, Installment Loan, or Line of Credit to get the cash you need — often the same day or within 24 hours of approval. Best of all, you don’t need good credit to get approved. 

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How tax refund loans work 

Tax refund loans are typically offered by financial institutions that partner with tax-preparation companies. 

Once you file your taxes with the tax preparer, they may offer you a refund advance through their financial partner. Interest rates and loan origination fees vary. 

After the IRS receives your return and issues the refund, the funds will be sent directly to the lender, and you’ll receive the remaining balance. 

Benefits of a tax refund advance loan 

Easy application process. Tax refund advance loans are usually easy to apply and get approved for. There aren’t many requirements and applications are often online. 

You don’t need good credit. Lenders typically don’t require that you have excellent credit, and applying typically won’t affect your credit score. 

Quick access to your funds. If you need cash immediately to pay for things like necessities or time-sensitive bills, a tax refund advance loan could provide you with funds almost immediately. There isn’t any waiting around for extended periods. 

You may be able to forgo loan payments. If your tax refund is sent directly to your lender, you won’t have to worry about making loan payments. Instead, your lender takes the payment straight from your refund. 

Drawbacks of a tax refund advance loan 

You must hire a company to file your taxes. If you choose not to apply with a direct lender, you’ll need to hire a company that offers tax refund loans to do your taxes. So, if you prefer to do your own taxes, this option may not fit your needs. 

You may receive less than anticipated. If the IRS withholds your tax refund or the tax service makes an error in calculating it, you won’t get the amount of money you expected. You’ll need to repay your tax refund advance loan in full or settle for less money. 

Potential fees. Tax refund advance loans are not free. If you opt for one, you may have to pay interest and fees to get your taxes prepared or the administrative costs that come with transferring your refund. 

You won’t be able to build credit. Since you won’t be making any loan payments, on-time payments won’t count towards increasing your credit. Your credit will stay the same from before you got the tax refund advance loan. 

Tax refund advance FAQs 

Can I get a tax refund advance online? 

Yes, you can get a tax refund advance online from a direct lender. But, if you prefer in-person help, you can still visit a tax preparation company or direct lender. 

How early can I get a tax refund advance? 

The good thing about a tax refund advance is that you don’t need to wait to get the money. If you file your taxes yourself, you could be waiting up to two months for your refund from the IRS. You can get your refund early with a tax refund advance as soon as the same day. 

Is a tax refund loan right for me? 

To decide whether a tax refund advance loan is the right choice for you, consider your financial situation. 

If you need funds right away to cover expenses, then a tax refund loan may make sense. But if you need more money than your tax refund advance loan will give you or don’t want to hire a tax preparation service, you may want to consider alternatives like an Installment Loan or title loan.