H&R Block stopped offering refund advances in 2021
H&R Block discontinued its Refund Advance product (also called a RAL, or refund anticipation loan) after the 2020 tax year. The company no longer offers loans against your expected tax refund. If you used this product in the past, you will not find it available when you file with H&R Block now.
The decision reflected a broader industry shift. Most major tax preparation companies stopped offering refund advances around the same time, partly because the IRS began issuing refunds faster through direct deposit, and partly because the loans carried high fees relative to the wait time they saved.
If you are looking for ways to get your refund sooner, or if you need cash before your refund arrives, there are other routes available — some through H&R Block itself, and some outside it.
Key Takeaways
- H&R Block stopped offering refund advances after the 2020 tax year and does not currently offer this product.
- The IRS now issues most refunds within 21 days of acceptance if you choose direct deposit, making advance loans less necessary.
- H&R Block offers a Refund Transfer product that can deliver your refund to a temporary account within one to two business days, though it carries a fee.
- If you need cash before your refund arrives, personal loans, credit cards, or employer paycheck advances may be cheaper than the fees charged by refund-related products.
- Filing early and choosing direct deposit remains the fastest free way to receive your refund.
Why H&R Block ended refund advances
Refund advances were loans against your expected tax refund, issued before the IRS processed your return. You would receive the money within days, then repay the loan (plus fees and interest) when your actual refund arrived. The loans typically cost $100 to $300 depending on the amount and the lender.
The economics changed. The IRS began processing returns faster, especially for direct deposits. By 2020, most refunds arrived within two to three weeks of acceptance — close enough to the speed of a refund advance that the fee no longer made sense to many filers. At the same time, regulatory scrutiny increased around the fees and terms of these products, and several states restricted or banned them.
H&R Block, along with TurboTax, Jackson Hewitt, and other major preparers, phased out the product. It has not returned.
How fast the IRS actually processes refunds now
The IRS aims to issue refunds within 21 days of accepting your return, provided you file electronically and choose direct deposit. In practice, most refunds arrive within that window, though some take longer depending on whether the return is flagged for review or contains errors.
If you mail a paper return, the timeline is much longer — typically six to eight weeks or more. If you choose a check by mail instead of direct deposit, add another week or two for postal delivery.
You can track your refund status using the IRS's Where's My Refund? tool on irs.gov. The tool updates once per day and shows you the current status and expected delivery date. This free tracking is available to anyone who filed electronically.
H&R Block's Refund Transfer as an alternative
H&R Block offers a product called Refund Transfer that functions differently from the old refund advance. Instead of a loan, it is a temporary account that receives your refund directly from the IRS. The money appears in that account within one to two business days of the IRS accepting your return, and you can withdraw it immediately.
The catch is the fee. H&R Block charges for this service — the exact amount varies by year and product tier, but typically ranges from $15 to $40. You pay this fee regardless of whether you use the account or simply wait for your refund to arrive in your own bank account.
The Refund Transfer makes sense only if you need the money urgently and the fee is worth the one- to two-week time savings. If you can wait 21 days, direct deposit to your own account costs nothing.
Other ways to get cash before your refund arrives
If you need money before your refund comes through and the Refund Transfer fee seems high, consider these alternatives:
- Personal loan from a bank or credit union: If you have an existing relationship with a bank or credit union, they may offer short-term personal loans at rates lower than refund-related products. Rates vary widely.
- Credit card cash advance: If you have available credit, a cash advance from your credit card may carry a lower effective cost than a refund transfer, depending on your card's terms and your interest rate.
- Employer paycheck advance: Some employers offer paycheck advances or early pay options. Check with your HR or payroll department — this is often free or very low-cost.
- Wait for direct deposit: If you can manage it, filing early and choosing direct deposit remains the fastest free option. Filing in early February rather than late March can make a real difference.
None of these are perfect solutions, but they give you options beyond paying a fee to H&R Block for speed you may not actually need.
How to file with H&R Block and get your refund fastest
If you are filing with H&R Block and want to receive your refund as quickly as possible without paying extra fees, follow these steps:
- File electronically. Paper returns take much longer.
- Choose direct deposit to your bank account. This is faster than a check by mail.
- File as early as possible in the tax season. The IRS processes returns in the order they are received, so filing in early February gets you ahead of the March rush.
- Make sure your return is accurate and complete. Errors or missing information trigger IRS review, which delays your refund.
- Use the IRS's Where's My Refund? tool to track status once your return is accepted.
H&R Block will show you the option to add a Refund Transfer during the filing process. You can decline it and proceed with standard direct deposit at no charge.
What happened to people who used refund advances before
If you received a refund advance in 2020 or earlier, your loan was repaid when your actual refund arrived. There is no ongoing obligation or balance. The product simply is not available anymore.
Some people who relied on refund advances for cash flow have had to adjust their filing strategy. If you were one of them, the best approach now is to file as early as possible and plan your budget around a 21-day wait for direct deposit, or to explore the other borrowing options listed above.
Frequently Asked Questions
Can I get a refund advance from any tax preparation company now?
Most major tax preparers stopped offering refund advances around 2020 and 2021. Some smaller or regional preparers may still offer them, but they are rare. Check directly with any preparer you are considering, but expect the answer to be no.
Is the Refund Transfer the same as the old refund advance?
No. A refund advance was a loan you repaid with interest and fees. A Refund Transfer is a temporary account that receives your actual refund from the IRS faster than it would arrive in your own bank account. You do not repay anything — you just pay a fee upfront for the speed.
How long does direct deposit actually take if I file with H&R Block?
The IRS aims for 21 days from acceptance to deposit. H&R Block does not control this timeline — the IRS does. Once the IRS accepts your return, you can track progress using Where's My Refund? on irs.gov.
What if I need money right now and cannot wait for my refund?
A personal loan, credit card cash advance, or employer paycheck advance may be cheaper than paying H&R Block's Refund Transfer fee. Compare the total cost of each option before deciding. If the fee is under $20 and you need the money within days, the Refund Transfer might still be worth it.
Can I still file with H&R Block even though they do not offer refund advances?
Yes. H&R Block continues to prepare and file tax returns. The only product that is gone is the refund advance. You can still use H&R Block to file your return and receive your refund through standard direct deposit.