TurboTax does not offer refund advance loans directly, but it partners with third-party lenders who do
TurboTax itself does not lend money against your expected refund. However, when you file through TurboTax, you may see offers for refund advance loans (sometimes called refund anticipation loans or RALs) from partner lenders. These are short-term loans that pay you part or all of your expected refund before the IRS processes your return — usually within one to three business days.
The lender charges a fee for this speed. Fees typically range from $25 to $89 depending on the loan amount and the lender, though the exact cost varies. You repay the loan from your actual refund when it arrives from the IRS, so the lender's fee comes out of what you would have received.
TurboTax shows these loan offers during the filing process, usually near the end when you are reviewing your return and choosing how to receive your refund. You can decline the offer and wait for your refund through normal IRS channels instead.
Key Takeaways
- TurboTax partners with lenders to offer refund advance loans, but does not provide the loans itself.
- A refund advance loan puts money in your account in one to three business days, with fees ranging from $25 to $89 depending on the lender and loan size.
- The lender's fee is deducted from your actual refund when the IRS sends it, so you receive less money overall.
- You can decline the loan offer and wait for your standard IRS refund instead, which takes longer but costs nothing.
- Refund advance loans are optional — TurboTax will not force you to take one to file your return.
How the refund advance loan works through TurboTax
When you reach the refund delivery step in TurboTax, the software shows you available loan offers from its partner lenders. You see the loan amount (usually your full expected refund or a portion of it), the fee, and how quickly the money would arrive. If you choose to proceed, you authorize TurboTax to share your return information with the lender.
The lender then verifies your identity and the refund amount shown on your return. If approved, the loan funds transfer to your bank account or prepaid card within one to three business days. The IRS continues processing your actual return on its normal schedule. When your refund arrives at the lender (not at you), the lender deducts the loan amount plus the fee and sends you the remainder, if any.
For example: if your expected refund is $2,000 and the loan fee is $89, you receive $2,000 in one to three days. When the IRS sends the $2,000 refund to the lender, the lender keeps $2,089 ($2,000 loan repayment plus $89 fee) and you receive nothing additional. You have already been paid.
When a refund advance loan makes sense
A refund advance loan is useful if you need money before the IRS processes your return and the fee is worth the speed to you. Standard IRS refunds take 21 days or longer depending on how you file and whether the return requires review. If you are facing an urgent bill, overdue rent, or another time-sensitive expense, paying $25 to $89 to get your money three weeks earlier may be a reasonable trade.
The loan also makes sense if you filed early in the tax season and the IRS is processing returns slowly due to volume. A refund that might normally arrive in 21 days could take 30 or 40 days during peak filing periods, making the advance loan's speed more valuable.
However, if you can wait for your refund without hardship, declining the loan and receiving your full refund costs you nothing. The IRS refund is free; only the advance loan carries a fee.
Fees and what they depend on
Refund advance loan fees are not set by TurboTax or the IRS — each lender sets its own. Fees typically start around $25 for smaller loans and rise to $89 or more for larger amounts. Some lenders charge a flat fee; others charge a percentage of the loan amount or a tiered fee based on how much you borrow.
The fee also depends on the lender you choose. TurboTax may show multiple lenders with different fee structures, allowing you to compare before deciding. Read the fee disclosure carefully before accepting any loan offer, because the fee comes directly out of your refund.
Some lenders also charge additional fees if you choose to receive the loan on a prepaid card rather than a bank transfer, or if you need the money even faster (same-day or next-day delivery). Ask about all possible fees before you commit.
How to decline the refund advance loan
You do not have to accept a refund advance loan to file your taxes through TurboTax. When the loan offer appears during filing, you can simply select the option to decline and proceed with a standard refund instead. TurboTax will not prevent you from filing or charge you extra for refusing the loan.
If you decline, choose your refund delivery method — direct deposit to your bank account is fastest and free, typically arriving within 21 days. You can also request a check, though checks take longer to arrive by mail.
Declining the loan means you wait longer for your money but keep your entire refund. This is the right choice if you do not have an urgent need for the money before the IRS processes your return.
Alternatives to refund advance loans
If you need money before your refund arrives and a refund advance loan's fee seems too high, other options exist. Some banks and credit unions offer short-term loans or lines of credit to customers, sometimes at lower rates than refund advance loans. Check with your bank about what is available.
You can also explore whether you are due a larger refund by adjusting your withholding or claiming credits you may have missed. TurboTax walks you through common credits like the Earned Income Tax Credit (EITC) and the Child Tax Credit. A larger refund means less need to borrow against it.
If your refund is delayed beyond the normal timeframe, you can check the status using the IRS's "Where's My Refund?" tool on IRS.gov. Delays sometimes happen if the IRS needs to review your return, and knowing the reason can help you decide whether to wait or pursue other options.
What happens if the IRS delays your refund
If you take a refund advance loan and the IRS delays processing your actual return, you still owe the lender the loan amount plus the fee. The delay does not cancel the loan or reduce what you owe. The lender will wait for the IRS refund to arrive and deduct the loan and fee from it, even if the refund takes longer than expected.
This is why refund advance loans carry some risk: you are betting that the IRS will process your return on schedule. If your return requires additional review — for example, if you claimed a large credit or reported unusual income — the IRS may hold it for weeks or months. You will still owe the lender during that time.
Before accepting a refund advance loan, make sure your return is complete and accurate. Errors or missing information increase the chance of IRS delays, which could leave you owing the lender while waiting for your refund.
Frequently Asked Questions
Can I get a refund advance loan if I file with TurboTax Free?
Yes, refund advance loan offers appear regardless of which TurboTax product you use. The loan comes from a third-party lender, not from TurboTax itself, so the version of TurboTax does not matter. You will see the offer during the refund delivery step.
What if I already filed my taxes and did not take the loan?
Once you have filed and the loan offer window has closed, you cannot go back and take a refund advance loan through TurboTax. Some lenders offer refund advance loans outside of tax software, but you would need to search for them separately and provide your tax return information directly. Check with your bank first, as they may offer faster options.
Does taking a refund advance loan affect my credit score?
Most refund advance lenders do not report the loan to credit bureaus, so it typically does not show up on your credit report or affect your credit score. However, some lenders may perform a credit check to verify your identity, which can create a small, temporary dip in your score. Ask the lender whether they report to credit bureaus before you commit.
What if my refund is smaller than expected?
If the IRS refund turns out to be smaller than TurboTax estimated, you still owe the lender the full loan amount plus the fee. The lender will take what is owed from the smaller refund, and you may receive little or nothing back. This is another reason to make sure your return is accurate before taking the loan.
Can I use a refund advance loan to pay TurboTax's filing fee?
No. The refund advance loan is a separate product offered by a third-party lender. It does not pay TurboTax's fee. You pay TurboTax's fee separately during the filing process, usually by credit card, debit card, or by deducting it from your refund. The refund advance loan is only for getting your refund money faster.