You can get a refund advance loan right now, but only during tax season and only through certain lenders
A refund anticipation loan (RAL) or refund advance is money a lender gives you before the IRS sends your actual refund. You get the cash in days instead of weeks, but you pay interest and fees. The catch: these loans are only available during tax season (roughly January through April), and only if you file your return through a tax preparation company that partners with a lender.
You cannot walk into a bank and ask for a refund loan. You have to file your tax return first, then apply for the advance through the tax preparer's lender. Some tax preparation chains like H&R Block and Jackson Hewitt offer them; others do not. Online tax software companies rarely do.
If tax season has passed or you already filed without using a lender partner, a refund advance is no longer an option. Your only choice then is to wait for the IRS to send your refund through direct deposit or mail.
Key Takeaways
- Refund advance loans are only sold during tax season (January through April) by tax preparation companies that have lender partnerships.
- You must file your return through a participating tax preparer to get a refund advance; you cannot borrow against a refund you have already filed.
- The lender typically deposits money into your account within one to three business days after you sign the loan agreement.
- Interest rates and fees vary by lender and loan size, but expect to pay $50 to $300 or more depending on how much you borrow.
- If you do not receive your refund on time, you are still responsible for repaying the loan on schedule.
How to get a refund advance loan during tax season
The process starts with choosing a tax preparer that offers refund advances. Call ahead or check their website to confirm they have a lender partnership. When you arrive to file (or if you are filing online), ask whether a refund advance is available and what the terms are.
Once you file your return, the tax preparer submits it to the IRS and also sends your refund information to the lender. The lender then reviews your return to confirm the refund amount and your identity. If approved, you sign a loan agreement that spells out how much you are borrowing, the interest rate, the fee, and the repayment date.
The lender deposits the loan amount into your bank account, usually within one to three business days. The IRS then processes your actual refund and sends it directly to the lender to repay the loan. You never see that money—it goes straight to paying off what you borrowed.
What the loan costs and how repayment works
Refund advance loans are expensive. A typical loan of $1,000 might cost $100 to $150 in interest and fees combined. A $3,000 loan could cost $200 to $300. The exact amount depends on the lender, the loan size, and how long the loan is outstanding.
Repayment is automatic. When the IRS sends your refund to the lender, the lender keeps enough to cover the loan balance, interest, and fees, then sends any remainder to you. If your refund is smaller than expected, you may owe money out of pocket. If your refund is larger, you receive the difference.
The risk is timing. If the IRS delays processing your return, the loan may come due before your refund arrives. You are then responsible for paying the lender directly, even if you have not received your refund yet. This is why refund advances are risky: you are betting the IRS will process your return on time.
When a refund advance makes sense and when it does not
A refund advance makes sense only if you need the money urgently and cannot wait two to four weeks for the IRS to process your return. The cost is high enough that you should only consider it if you have a specific, immediate need—an emergency repair, a past-due bill, or a time-sensitive expense.
A refund advance does not make sense if you can wait. The IRS now offers direct deposit, which is free and delivers your refund in as little as five to seven business days during peak season. That is much faster than filing by mail, and it costs nothing. If you can wait a week or two, direct deposit is the better choice.
A refund advance also does not make sense if your refund is small. If you are expecting $500 or less, the fees will eat up a large chunk of your money. You are better off waiting.
Alternatives if you cannot get a refund advance
If tax season has ended or your tax preparer does not offer refund advances, you have other options. A personal loan from a bank, credit union, or online lender does not depend on your tax refund and can be obtained year-round. The interest rate is usually lower than a refund advance, but you have to repay it on a set schedule regardless of whether your refund arrives.
A credit card cash advance is another option, though the interest rate is typically very high. A payday loan is fast but extremely expensive and should be a last resort.
If you are waiting for your refund and need to know where it is, use the IRS's Where's My Refund? tool on IRS.gov. You can check the status of your return for free, and the tool updates every 24 hours during processing.
How to track your refund if you took out a loan
After you take out a refund advance loan, the lender will give you a loan agreement that includes a repayment date. Mark that date on your calendar. The lender expects the IRS to send your refund by that date so the loan can be repaid automatically.
Use the IRS's Where's My Refund? tool to track your actual refund status. If your return shows "approved" or "sent," your refund is on the way to the lender. If the status stalls or shows a delay, contact the lender immediately to discuss what happens if your refund does not arrive by the loan due date.
Keep all loan documents in a safe place. You will need them if there is a dispute about the repayment or if the IRS delays your refund.
What happens if the IRS delays your refund
If the IRS does not send your refund by the loan due date, you are still responsible for repaying the lender. The lender will not wait for the IRS. You will have to pay the loan balance out of pocket, then wait for your refund to arrive separately.
This is the biggest risk of a refund advance loan. The IRS can delay a return for many reasons: missing information, identity verification, math errors, or simply high volume during peak season. If your return is delayed, you lose the benefit of the advance and end up paying the loan fees for nothing.
Before you sign a refund advance loan agreement, ask the lender what happens if your refund is delayed. Some lenders offer a grace period; others do not. Get the answer in writing.
Frequently Asked Questions
Can I get a refund advance if I have already filed my return?
No. Refund advances are only available at the time you file your return, through a tax preparer that has a lender partnership. Once you have filed, you cannot go back and borrow against your refund. You will have to wait for the IRS to send it.
How fast do I get the money from a refund advance loan?
Most lenders deposit the loan into your bank account within one to three business days after you sign the agreement. Some lenders offer same-day or next-day deposits for an additional fee. The exact timing depends on your bank and the lender.
What if my refund is smaller than the loan I took out?
You will owe the difference to the lender. For example, if you borrowed $2,000 but your refund is only $1,800, you owe $200 plus any unpaid interest or fees. The lender will contact you about payment.
Can I get a refund advance from an online tax software company?
Most online tax software companies do not offer refund advances. H&R Block and Jackson Hewitt are the main providers. Check with your tax preparer before you file to confirm whether they offer refund advances.
Is a refund advance the same as a refund anticipation loan?
Yes, they are the same thing. "Refund advance" and "refund anticipation loan" are used interchangeably. Both refer to a short-term loan that you repay when your tax refund arrives.