TurboTax does not offer refund advances directly, but it partners with third-party lenders who do

When you file through TurboTax, you will see an option called Refund Advance or Refund Transfer during the filing process. This is not a TurboTax product — it is a loan from a partner bank that gives you access to part of your refund before the IRS processes your return. TurboTax handles the paperwork, but the lender (usually a bank like Republic Bank or MetaBank) provides the money and charges a fee.

The advance is not free. You pay a fee that ranges from roughly $15 to $89 depending on which lender TurboTax partners with that year and what type of return you file. The fee is deducted from your refund, so if you owe $2,000 and take a $1,500 advance with a $50 fee, you receive $1,450 immediately and the IRS sends the remaining $500 to the lender after processing your return.

The timeline matters: an advance typically arrives in one to five business days if you choose electronic delivery to a debit card or bank account. The IRS still takes its normal time to process your full return — usually 21 days or longer — but you do not have to wait for that to happen.

Key Takeaways

  • TurboTax refund advances are loans from partner banks, not money from TurboTax or the IRS, and they charge a fee of $15 to $89.
  • The advance amount is usually less than your full refund, and the fee comes out of what you receive, not added on top.
  • Money arrives in one to five business days if you choose a debit card or bank account, while the IRS processes your full return separately.
  • You can decline the advance during filing and receive your refund the normal way at no cost.

How the advance works step by step

When you reach the refund section of your TurboTax return, the software will show you an estimate of what you will receive. At that point, TurboTax offers the advance option. If you choose it, you select how much of your refund you want upfront — you do not have to take the full amount.

TurboTax then routes your return to the partner lender, who reviews it and decides whether to approve the advance. This review usually takes a few hours to one business day. Once approved, the lender deposits the money into the account or debit card you provided. The lender also files your return with the IRS on your behalf.

When the IRS processes your return and sends the refund, it goes to the lender first. The lender keeps enough to cover the advance they already gave you, takes their fee, and sends the remainder to you. If your refund is smaller than expected, the lender may ask you to repay the difference, though this is rare.

What the fee covers and what it does not

The fee is a one-time charge for the service of giving you money before the IRS does. It is not an interest rate or a loan charge that grows over time — you pay it once, and that is the end of it. The fee does not cover tax preparation; TurboTax charges separately for that depending on which version you use.

The fee also does not may provide approval. The lender still reviews your return and can decline to advance money if they see red flags — for example, if the return shows inconsistencies or if your refund estimate is very small. If declined, you can still file your return normally through TurboTax and receive your refund from the IRS without paying any advance fee.

When a refund advance makes sense

An advance is useful if you need money before the IRS processes your return and you are willing to pay the fee for that speed. Common reasons include covering an unexpected bill, paying down debt, or bridging a gap until your next paycheck. The trade-off is straightforward: you pay $15 to $89 to get part of your money five to 21 days earlier than you otherwise would.

An advance does not make sense if you can wait for the IRS to process your return. The fee is money out of your pocket, and the IRS refund is free. If you have no urgent need for the cash, skipping the advance saves you the entire fee amount.

Alternatives to a TurboTax refund advance

You can file through TurboTax and decline the advance option. Your return goes to the IRS normally, and you receive your full refund without paying a fee. This takes longer — usually 21 days or more — but costs nothing.

You can also file through other tax software or a tax preparer who does not offer advances. The IRS processes your return the same way, and you get your money on the same timeline, with no advance fee involved.

If you need money before your refund arrives, a personal loan or credit card advance may be cheaper or more expensive than the refund advance fee depending on the amount and your credit. Compare the total cost before deciding.

How to decline the advance during filing

When TurboTax shows you the refund advance option, you can simply select "No" or "Decline." The software will continue to the next step, and your return will be filed without the advance. You will receive your full refund from the IRS on the normal timeline, with no fee deducted.

If you have already chosen the advance and want to cancel it, contact TurboTax customer support or the partner lender before your return is filed. Once the return is submitted to the IRS, you cannot cancel the advance, but you can still receive your refund normally after the IRS processes it.

What happens if your refund is delayed or smaller than expected

If the IRS delays processing your return, the lender still keeps the advance money they gave you. You are not responsible for paying it back — the lender waits for the IRS to send the refund. However, if your refund ends up being smaller than the advance, the lender may ask you to repay the difference out of pocket.

This is uncommon but can happen if the IRS makes adjustments to your return during processing — for example, if they disallow a deduction you claimed or if you owe back taxes or child support. The lender will contact you if this occurs and explain what you owe.

Frequently Asked Questions

Is the refund advance the same as a tax refund loan?

Yes, they are the same thing. TurboTax calls it a refund advance, but it is a short-term loan from a bank that is repaid when the IRS sends your refund. You pay a fee for the service, and the money arrives in days instead of weeks.

Can I get a refund advance if I owe taxes instead of getting a refund?

No. A refund advance only works if your return shows a refund coming to you. If you owe taxes, there is no refund to advance. You would need to pay what you owe to the IRS.

What if I file my return but do not want the advance money after it is deposited?

Once the lender deposits the advance into your account, it is yours to keep. You do not have to return it. The lender will still collect their money when the IRS sends your full refund, so there is no penalty for receiving the advance and not using it.

Does taking a refund advance affect my credit score?

No. A refund advance is not reported to credit bureaus, so it does not show up on your credit report or affect your score. It is a one-time transaction between you, TurboTax, and the lender.

How much of my refund can I advance?

The lender typically allows you to advance up to 50 to 100 percent of your estimated refund, depending on the lender and your return. TurboTax will show you the maximum amount available during the filing process.