TurboTax offers refund advances through a partnership with a third-party lender, not through TurboTax itself
TurboTax does not lend money directly. Instead, TurboTax users can see an offer for a refund advance during the filing process — usually on the final review screen before submitting the return. The advance comes from a partner lender, typically Pathward (formerly MetaBank), and the money is deposited to your bank account within one to two business days of approval.
The advance is a short-term loan against your expected refund. You repay it when your actual refund arrives from the IRS. If you take the advance, the lender deducts the loan amount plus fees from your refund when it lands. You end up with less money than your refund would have been, because the lender keeps the advance amount and fees as repayment.
Not every TurboTax user sees this offer. The lender decides whether to approve you based on your income, the refund amount on your return, and other factors. Even if you see the offer, you can decline it and wait for your refund through the normal IRS process instead.
Key Takeaways
- TurboTax shows refund advance offers during filing, but the loan comes from a third-party lender, not from TurboTax or the IRS.
- The advance is deposited within one to two business days if approved, but you repay it from your actual refund when it arrives.
- Fees for the advance reduce the amount you ultimately receive — the lender deducts both the loan and the fee from your refund.
- You can decline the advance offer and wait for your refund through the normal IRS process, which typically takes 21 days or longer.
- The lender's approval decision is based on your income and refund amount, so seeing the offer does not mean you will be approved.
Where the refund advance offer appears in TurboTax
The refund advance offer shows up near the end of the TurboTax filing process, usually on the screen where you review your return before submitting it to the IRS. TurboTax displays the offer as an optional choice — you can accept it or skip it. The offer includes the loan amount (which matches your expected refund), the fee amount, and the net amount you will receive after the fee is deducted.
If you do not see an offer, it means the lender did not approve you for an advance. This can happen if your refund is too small, your income is below a certain threshold, or the lender's risk assessment flags your return. You can still file your return and receive your refund through the normal IRS process.
How much the advance costs and what you actually receive
The fee for a refund advance varies by lender and by the size of your refund. TurboTax's partner lender typically charges between $0 and $15 for advances under $1,000, though the exact fee depends on your state and the lender's current terms. Some states cap or prohibit refund advance fees, so residents of those states may see lower or no fees.
Here is how the math works: if your refund is $2,000 and the fee is $10, you receive $1,990 immediately from the lender. When your actual refund arrives from the IRS, the lender takes $2,000 to repay the advance, leaving you with nothing from that refund. You have received $1,990 total instead of $2,000 — the $10 fee is the cost of getting the money 19 days faster than the IRS would send it.
The IRS typically deposits refunds within 21 days of accepting your return, though it can take longer during peak filing season or if your return requires review. If speed matters to you and the fee is small relative to your refund, the advance may be worth it. If you can wait, skipping the advance means you keep the full refund amount.
Steps to take the refund advance through TurboTax
When you reach the final review screen in TurboTax and see the refund advance offer, read the terms carefully. The screen will show the loan amount, the fee, and the net amount you will receive. If you want to proceed, select the option to accept the advance.
You will then need to provide or confirm your bank account information for the deposit. The lender uses the same account where TurboTax would normally deposit your refund. Make sure the account number and routing number are correct — if they are wrong, the advance deposit will fail and you will have to contact the lender to correct it.
After you accept the advance and submit your return to the IRS, the lender reviews your information and makes a final approval decision. This usually takes a few hours to one business day. Once approved, the advance is deposited to your bank account within one to two business days. You will receive a confirmation email from the lender with the loan details and the expected deposit date.
What happens when your actual refund arrives from the IRS
When the IRS processes your return and deposits your refund, it goes to the same bank account you provided. However, the lender has a legal claim on that refund to repay the advance. The lender automatically deducts the advance amount plus any remaining fees from your refund deposit.
You will see two separate deposits if the IRS refund arrives after the advance: first the advance from the lender, then later the refund from the IRS (minus the deduction). If the IRS refund is smaller than expected — for example, because of a tax offset or an error on your return — the lender may not recover the full advance amount. In that case, you could owe the lender money. This is rare but possible, so understand the terms before accepting.
The lender sends you a statement showing the advance repayment once your refund is processed. Keep this for your records in case you need to dispute the transaction or verify the repayment for tax purposes.
Reasons to decline the refund advance
If you do not need the money immediately, declining the advance means you keep your full refund. The IRS will deposit it to your bank account within 21 days in most cases, and you avoid the fee entirely. This is the simplest choice if you can wait.
You should also decline if your refund is small — a $50 refund with a $10 fee means you lose 20 percent of your money to the fee. The smaller the refund, the less sense the advance makes financially.
If you are unsure whether the lender will approve you, declining the offer avoids the risk of being denied after you have already submitted your return. You can always file your return and receive your refund through the normal process.
Tracking your advance and refund status
After you accept the advance, the lender sends you a confirmation email with a reference number and a link to track the deposit. Use this link to check the status of your advance deposit — it will show when the money is expected to arrive in your account.
To track your actual IRS refund, use the IRS's Where's My Refund tool on IRS.gov. Enter your Social Security number, filing status, and the exact refund amount from your return. The tool updates once a day and will show you the deposit date once the IRS has processed your return.
If your advance does not arrive within two business days, contact the lender using the confirmation email or the tracking link. If your IRS refund does not arrive within 21 days, contact the IRS through the Where's My Refund tool or call 1-800-829-1040.
Frequently Asked Questions
Is the refund advance the same as a loan from TurboTax?
No. TurboTax displays the offer, but the loan comes from a third-party lender, usually Pathward. TurboTax does not lend money or charge fees for the advance. The lender makes the approval decision and sets the fee.
What if I am denied for the refund advance?
If the lender denies you, you can still file your return through TurboTax and receive your refund from the IRS within 21 days. Denial does not affect your refund or your ability to file — it only means the lender chose not to offer you an advance.
Can I cancel the refund advance after I accept it?
Once you submit your return to the IRS after accepting the advance, you cannot cancel it. The advance and the loan agreement are binding. If the advance has not been deposited yet, contact the lender immediately to ask about cancellation options.
Do I have to use the same bank account for the advance and my refund?
Yes. TurboTax and the lender use the same account information for both the advance deposit and the refund deposit. If you want the advance to go to a different account, you will need to change your account information before accepting the offer.
What if my refund is smaller than the advance I received?
If your IRS refund is smaller than the advance amount — for example, because of a tax offset or an error — the lender may not recover the full advance. You could owe the lender money. Review the loan terms carefully before accepting to understand this risk.