TurboTax ended its refund advance product in 2021 and has not brought it back

TurboTax's refund advance — a short-term loan against your expected tax refund — is no longer available through the platform. The company discontinued the product after the 2020 tax year. If you used this feature in past years and are looking for it now, you will not find it in your TurboTax account, and TurboTax has not announced plans to reintroduce it.

The refund advance was a loan product, not a refund itself. You would borrow money before the IRS processed your return, then repay the loan from your actual refund when it arrived. TurboTax offered this through a partnership with a third-party lender. When TurboTax ended the program, that partnership ended as well.

The company has not publicly stated a single reason for the discontinuation. Industry observers point to several factors: stricter lending regulations, lower demand during years when refunds arrived faster, and the company's shift toward higher-margin products. Whatever the reason, the product is gone.

Key Takeaways

  • TurboTax discontinued refund advances after the 2020 tax year and has not restarted the program.
  • Refund advances were loans against your expected refund, not money from the IRS or TurboTax itself.
  • Other lenders and tax software platforms still offer refund advance products, though terms and fees vary widely.
  • The fastest way to get your refund without a loan is to file electronically and choose direct deposit, which typically takes 21 days or less.
  • If you need money before your refund arrives, personal loans and credit cards may cost less than a refund advance loan.

How refund advances worked and why they mattered

A refund advance was a short-term loan, usually between $250 and $1,500, that you could take out while waiting for the IRS to process your tax return. You would repay it from your refund when it arrived. The loan typically lasted two to three weeks — the time it took for the IRS to deposit your refund into your bank account.

The appeal was straightforward: if you needed cash immediately and knew a refund was coming, you could borrow against it without waiting. TurboTax charged a fee for this service, usually $25 to $50 depending on the loan amount. The lender (not TurboTax) charged interest on top of that.

The product was most popular during years when refund processing took longer — typically six to eight weeks. In recent years, the IRS has processed refunds faster, especially for electronic returns with direct deposit. That speed reduced the demand for advance loans.

Other platforms and lenders still offer refund advances

Even though TurboTax stopped offering refund advances, other tax software companies and standalone lenders still do. H&R Block offers a refund advance product called the Refund Advance Loan. Jackson Hewitt and Liberty Tax also offer similar products. Some online lenders, including Earnin and Dave, advertise refund advances or cash advances tied to expected tax refunds.

The terms vary significantly. Some charge a flat fee; others charge interest. Some require you to file your taxes through their platform; others work with any tax return. Loan amounts range from a few hundred dollars to over $1,000. Before you choose any of these products, compare the total cost — the fee plus interest — against the time you would save by borrowing.

Read the fine print carefully. Some refund advance loans require you to use the lender's tax software or to have your refund deposited into a specific account. Others have strict income limits or require proof that you have filed a return. A few charge additional fees if you do not repay on time, though most are designed to be repaid automatically from your refund.

Direct deposit is faster than any refund advance

The IRS processes most electronic tax returns with direct deposit in 21 days or less. Many arrive in 10 to 14 days. If you file electronically and choose direct deposit to your bank account, you may not need a refund advance at all — your money could arrive before a loan would even be approved.

To get the fastest refund, file electronically (not by mail), choose direct deposit instead of a check, and make sure your bank account information is correct on your return. Errors in your account number or routing number will delay the deposit. The IRS will mail a check instead if direct deposit fails, which adds another week or two.

You can track your refund status using the IRS's Where's My Refund? tool on IRS.gov. This tool updates once per day and shows you whether the IRS has received your return, is processing it, has approved it, or has sent it to your bank. If you see a delay, the tool will tell you why.

Alternatives to refund advances if you need money now

If you need cash before your refund arrives and a refund advance is not available or too expensive, consider other options. A personal loan from a bank or credit union often has a lower interest rate than a refund advance, especially if you have decent credit. You can repay it from your refund once it arrives.

A credit card cash advance is another option, though it typically carries a high interest rate and an upfront fee. A payday loan is fast but very expensive — the annual interest rate can exceed 400 percent. Use this only if you have no other choice and can repay it within two weeks.

If your employer offers paycheck advances or if you have a line of credit through your bank, those may be cheaper than any of these options. Some employers also offer emergency loans to employees. Ask your HR department whether this is available to you.

What to do if you were promised a refund advance by TurboTax

If you received a marketing email, advertisement, or offer from TurboTax promising a refund advance, that message was likely old or sent in error. TurboTax's website no longer mentions refund advances, and the company does not offer them. If you see an ad claiming TurboTax offers refund advances, it may be from a third party using TurboTax's name without permission.

Do not click links in unsolicited emails or ads claiming to offer refund advances. Scammers often impersonate tax software companies to collect personal information or charge fees for loans that do not exist. Go directly to TurboTax.com or call TurboTax customer service if you have questions about what products are actually available.

If you already paid a fee for a refund advance through TurboTax in a previous year and believe you were overcharged, contact TurboTax customer service. The company has settled lawsuits over refund advance fees in the past, and customer service may be able to review your account.

How to file your taxes without a refund advance

Filing electronically with direct deposit is the fastest way to get your refund without borrowing. Most tax software, including TurboTax, guides you through the process step by step. You will need your Social Security number, income documents (W-2s, 1099s, etc.), and your bank account information for direct deposit.

File as early as possible in the tax season — the IRS begins processing returns in late January. The earlier you file, the sooner your refund arrives. If you wait until April, you may face delays because the IRS is processing millions of returns at once.

If you are owed a refund and do not need the money immediately, there is no reason to pay for a refund advance. Simply file electronically, choose direct deposit, and wait. Your refund will arrive within three weeks in most cases, and it will be the full amount without any loan fees or interest charges.

Frequently Asked Questions

Can I get a refund advance through TurboTax now?

No. TurboTax discontinued refund advances after the 2020 tax year and has not brought the product back. Other tax software companies and lenders still offer refund advances, but TurboTax itself does not.

How long does it take to get a refund if I file electronically with direct deposit?

The IRS typically processes electronic returns with direct deposit in 21 days or less. Many refunds arrive in 10 to 14 days. You can check the status of your refund using the IRS's Where's My Refund? tool on IRS.gov.

Is a refund advance cheaper than a personal loan?

It depends on your credit and the lender. Refund advances are designed to be fast and require minimal underwriting, but they can be expensive. A personal loan from a bank or credit union may have a lower interest rate if you have good credit. Compare the total cost of each option before you decide.

What if I see an ad for TurboTax refund advances?

That ad is likely old, misleading, or from a scammer impersonating TurboTax. Go directly to TurboTax.com or call customer service to confirm what products are actually available. Do not click links in unsolicited emails or ads.

Can I get my money back if I paid a refund advance fee in the past?

Contact TurboTax customer service to review your account. The company has settled lawsuits over refund advance fees before, and they may be able to help if you believe you were overcharged.