What TurboTax Refund Advance is and how to get it

TurboTax Refund Advance is a short-term loan offered through Pathward Bank that lets you borrow against your expected tax refund while you wait for the IRS to process your return. You receive the money within one business day of approval, and the loan amount is deducted from your refund when it arrives. The advance itself is free, but Pathward charges a loan fee that ranges from $0 to $89 depending on the loan amount and your state.

To get a refund advance through TurboTax, you complete your tax return in the software, then during the filing step you'll see the option to request an advance. You choose how much to borrow (up to your estimated refund), agree to the terms, and Pathward reviews your application. If approved, the money goes to your bank account or prepaid card within one business day. The loan fee is withheld from the advance amount you receive.

The advance is not the same as a refund. You're borrowing money at interest, and that borrowed amount will be subtracted from your actual refund when the IRS processes your return. If your refund turns out to be smaller than expected, you may owe money back to Pathward.

Key Takeaways

  • TurboTax Refund Advance is a loan from Pathward Bank, not a faster way to get your actual refund from the IRS.
  • Loan fees range from $0 to $89 depending on the amount borrowed and your state, and this fee is deducted from the money you receive.
  • Money arrives in your bank account or prepaid card within one business day of approval, but you repay the loan from your actual tax refund.
  • You can only request an advance while filing your return in TurboTax, not after you've already submitted it to the IRS.
  • If your actual refund is smaller than the advance amount, you will owe the difference back to Pathward.

How much the loan costs and who pays the fee

Pathward charges a loan fee for the refund advance, and the amount depends on how much you borrow and which state you live in. The fee can be $0 if you borrow a small amount in certain states, but it typically ranges from $15 to $89. TurboTax shows you the exact fee before you agree to the loan, so you know the cost upfront.

The fee is not paid separately—it's deducted from the advance money itself. If you borrow $1,000 and the fee is $50, you receive $950 in your account, and Pathward keeps the $50. When your actual refund arrives from the IRS, Pathward takes the full $1,000 loan amount from it, not the $950 you received.

Some states cap or prohibit refund advance loans entirely. If you live in one of those states, TurboTax will not show you the refund advance option during filing. You can check your state's rules before you start your return, or TurboTax will tell you during the process if you're not in an may be able to access state.

Timeline: when you get the money and when you repay it

Once you request a refund advance in TurboTax and Pathward approves it, the money arrives in your bank account or prepaid card within one business day. This is much faster than waiting for the IRS to process your return, which typically takes 21 days or longer depending on how you filed and whether the IRS needs to verify information.

The repayment happens automatically when your actual refund arrives. The IRS sends your refund to Pathward instead of directly to you, Pathward deducts the loan amount, and any remaining balance goes to your account. This process is automatic—you don't have to do anything or make a separate payment.

The risk is timing. If the IRS delays processing your return, the loan sits unpaid longer. If the IRS reduces your refund due to an error or offset (money owed to another agency), your refund may be smaller than the advance amount, and you'll owe Pathward the difference. Pathward will contact you about repayment if this happens.

When you can request an advance and when you cannot

You can only request a TurboTax Refund Advance while you're filing your return in the software, before you submit it to the IRS. The option appears during the filing process, usually near the end when TurboTax is preparing your return for submission. If you don't request it then, you cannot go back and request it later after your return is already filed.

You cannot request an advance if you've already filed your return with TurboTax or another tax software, or if you filed on paper. The advance is tied to the filing process itself, so it's only available to people who haven't yet submitted their return to the IRS.

You also cannot request an advance if you live in a state that prohibits or restricts refund advance loans. These states change over time, but TurboTax will inform you during filing if you're not in an may be able to access state. If you're unsure, you can contact Pathward directly or check your state's banking or consumer protection agency website.

What happens if your actual refund is different from what you borrowed

When the IRS processes your return, your refund amount might be different from what you estimated when you requested the advance. This can happen if you made an error on your return, the IRS found a discrepancy, or you owed money to another agency (like a student loan servicer or state tax authority) and the IRS offset your refund to pay it.

If your actual refund is larger than the advance, the extra money goes to your account after Pathward deducts the loan amount. If your actual refund is smaller than the advance, you owe Pathward the difference. Pathward will send you a notice explaining what happened and how much you owe. You'll need to repay this amount separately, either by check, bank transfer, or another method Pathward offers.

If the IRS offsets your refund to pay a debt, Pathward is still owed the full loan amount. The offset happens after Pathward takes its payment, so you're responsible for both the loan repayment and any amount the IRS withheld. This is one of the biggest risks of taking a refund advance—you're borrowing based on an estimate, not a may provide.

Alternatives to TurboTax Refund Advance

If you need money before your refund arrives, a refund advance is one option, but it's not the only one. Other tax software companies like H&R Block and TaxAct also offer refund advances through different lenders, and the fees and terms may differ. Comparing the loan fee across providers can save you money if you're set on borrowing against your refund.

A personal loan from a bank or credit union is another option. Personal loans typically have lower interest rates than refund advances if you have decent credit, and you have more flexibility in how you repay. However, personal loans require a credit check and take longer to process than a refund advance.

If you can wait, the simplest option is to file your return and let the IRS process it normally. Direct deposit refunds arrive in 21 days or less in most cases, and you avoid paying a loan fee entirely. If you filed electronically and chose direct deposit, your refund goes straight to your bank account with no middleman taking a cut.

How to avoid problems with a refund advance

Before you request a refund advance, make sure your tax return is accurate. Double-check your income, deductions, and personal information. If you make a mistake and the IRS corrects it, your refund could be smaller than you expected, and you'll owe Pathward money. TurboTax has tools to review your return before filing, so use them.

Only borrow what you truly need. The fee is a real cost, and if you can wait a few weeks for your refund, you save that money entirely. If you borrow $500 and the fee is $35, you're paying 7% of the amount just to get the money a few weeks early. That's expensive for a short-term loan.

Keep records of everything related to the advance. Save the confirmation email from TurboTax and Pathward, the loan agreement, and any notices about repayment. If there's a dispute about how much you owe or when it was repaid, these documents protect you.

Frequently Asked Questions

Can I request a refund advance after I've already filed my return?

No. The refund advance option is only available during the filing process in TurboTax, before you submit your return to the IRS. Once your return is filed, you cannot go back and request an advance through TurboTax. You would need to explore other borrowing options like a personal loan or credit card.

What if I don't have a bank account—can the advance go to a prepaid card?

Yes. Pathward can deposit the advance to a prepaid card or debit card if you don't have a traditional bank account. You'll need to provide the card details during the application process. Make sure the card is in your name and can receive direct deposits.

Do I have to use TurboTax's refund advance, or can I choose a different lender?

TurboTax partners with Pathward for refund advances, so if you file through TurboTax and want an advance, Pathward is the lender. Other tax software companies partner with different lenders, so you could compare offers by filing with multiple software options before submitting to the IRS. However, you can only file one return with the IRS, so you'd need to decide which software to use before you start.

What happens if the IRS offsets my refund to pay a debt I owe?

Pathward still gets paid the full loan amount from your refund before any offset happens. If the IRS withholds part of your refund to pay a debt, you're responsible for repaying Pathward the full advance amount, and you also lose the portion the IRS offset. This is a significant risk—you could end up owing money to both Pathward and the government.

Is the refund advance fee tax deductible?

No. The loan fee is a personal expense, not a tax-deductible business or investment expense. You cannot deduct it on your tax return. This is another reason to think carefully about whether the advance is worth the cost.