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Key takeaways
- A tax refund loan is a short-term loan product offered by tax preparation firms.
- Rather than waiting three to six weeks for the IRS to pay out your refund, a tax refund loan makes the money available immediately.
- Once your refund clears, the money will automatically pay off the tax refund loan.
- Read the fine print to check for fees, interest rates, and other associated costs before moving forward with this type of loan
For 2024 tax returns filed in 2025, the average tax refund was $3,116. That’s a hefty chunk of change – especially if you’re facing a large bill. And while most tax refunds are issued within 21 days of e-filing your return or six weeks of mailing it, you might need that money sooner.
Enter: tax refund loans. Some tax preparation companies offer tax advances to help you access your money sooner, but these loans often come with fees or fine print.
Before you decide if a tax refund loan is right for you, here’s what to know about how they work, their typical costs, and guide you through the process of getting one.
Tax refund loan basics
A tax refund loan is a short-term loan product that can help you get the cash you need, usually the same day that you e-file your return. The loan is then automatically repaid once the IRS issues your refund. Let’s learn more.
How a tax refund loan works
To access a tax refund loan, you must e-file your taxes through a tax preparation firm. If you choose a tax refund loan, you’ll receive some or all of your expected refund from your tax preparer. Depending on your tax preparer, you’ll be able to access funds on the day you file, or within a few business days. Once your official refund clears, the loan will be automatically repaid.
Keep in mind that you’re on the hook to pay off the entire loan amount once you get your tax refund. If your refund is less than you expect, you may have to dip into savings (or resort to another loan) to repay the tax refund loan in full.
Who offers tax refund advances?
Tax refund advances are primarily offered by large tax preparation firms like H&R Block, TurboTax, and Jackson Hewitt.
However, you can also find tax refund advance loans through smaller lenders and tax preparation offices. Fees and interest rates vary depending on the provider, so check the fine print before applying.
Refund Anticipation Loan (RAL) vs. tax refund advance
A Refund Anticipation Loan (RAL) is primarily offered by tax preparation companies. The exact amount of the loan depends on the lender. Some may lend the full amount of your estimated tax refund, while others may cap RALs at a certain percentage or dollar amount.
The term “tax refund advance” can also refer to a Refund Anticipation Check (RAC). When you apply for an RAC, the tax preparer opens a temporary bank account for your tax refund. They then write you a check or give you a prepaid card equal to the total or a percentage of your anticipated tax return. Once your return arrives in the temporary account, the tax preparer uses it to pay off your loan and fees.
Tax refund loan vs. tax refund advance
The terms “tax refund loan” and “tax refund advance” typically refer to the same loan product. Depending on where you file your taxes, the product may be marketed as a tax refund loan, tax refund advance, refund advance loan, or refund advance check.
The best way to determine the costs, terms, and conditions of a loan product is to read the fine print. That way, you’re not caught off guard by unexpected fees and interest charges.
Eligibility and requirements
All loan products have different eligibility requirements. Here’s what you should know about getting a tax refund loan.
Who qualifies?
Most taxpayers who expect to receive a tax refund should qualify for a tax refund loan. However, you can only apply for a loan if you e-file using a professional tax preparation firm.
Some lenders may require you to have a bank account with them to qualify for a loan. Others may offer you the option of receiving the funds on a prepaid debit card or opening a short-term account where the IRS can deposit your refund, making repayment easier.
Credit check, soft pulls, and collateral
Tax refund loan lenders will often check your credit, the same as any lender would when you apply for a loan. However, they’ll typically run a soft credit check rather than a hard one. A soft credit pull has no effect on your credit score – it’s like you checking your own credit score in your banking app.
The reason lenders don’t need to perform a hard credit pull is that tax refund loans are secured using your expected tax refund as collateral. There’s less risk for the lender to approve the loan, since they know you have a windfall coming that will go directly toward loan repayment.
Costs, fees, and fine print
According to the Consumer Financial Protection Bureau, refund anticipation checks typically have a fee of $30 to $50. Paying this fee delays the cost of the tax preparation services until after your refund check clears. Fees for refund anticipation loans vary by provider.
If you want to get a tax refund loan, you’ll need to file through a tax preparation firm. These firms will charge a fee to file your taxes on your behalf. You may have the option to delay paying tax preparation fees when you get a refund loan. However, the fees will be deducted from your tax return, which could lower your eligible loan amount.
| Option | Typical Cost or Fee | Interest Rate | Repayment | Time to Receive Money |
|---|---|---|---|---|
| Tax refund loan (RAL) | $0-$269+ tax filing cost | 0-35.99% APR depending on lender | Automatically deducted from your refund | Usually within 1-5 days of filing |
| Refund anticipation check (RAC) | $30-$50 fee | None | Deducted from refund | When IRS issues refund (1-3 weeks) |
Your refund could be lower than you expect if you owe child support, back taxes, or other federal agency nontax debts. Additionally, the government can reduce your tax refund to help repay defaulted federal student loans.
As with any loan product, it’s essential to read the fine print to identify any hidden costs before proceeding with the application. Although many RAL providers don’t charge interest, some might – especially if your tax refund is delayed or smaller than expected and you have a remaining balance to pay.
How to get a tax refund loan
A tax refund loan can be a solid option if you need money fast and can’t wait three to six weeks for the IRS to issue your refund. Here’s how to get a loan on your tax refund:
- Gather your tax documents, which may include W-2s and 1099s, depending on how you made your income in the applicable tax year.
- Choose a tax preparation firm to e-file your taxes and make an appointment.
- Meet with the provider to review your tax return and estimate your refund amount. They may also check your income and credit history.
- If approved, you’ll receive your loan via check, direct deposit, or prepaid card.
- The tax preparer may open a temporary bank account into which your tax refund will be deposited to repay the loan.
- If there are any leftover funds from your tax return after repaying the loan, you’ll receive a check or a deposit for the remaining amount.
Don’t forget to ask about any applicable fees or interest charges before applying for a tax refund loan. If you receive the money on a prepaid card, there may be additional fees to consider.
Timing windows for 2026
Your 2025 tax return is due before or by April 15, 2026. However, you’ll probably need to file sooner if you want to get a tax refund loan.
The top tax preparation firms typically only offer refund advance loans until the middle or end of February. Smaller firms and lenders may have a longer application window, but it’s not guaranteed. Filing as soon as possible is the best way to get your tax return funds sooner.
If you’re eligible to receive a tax credit like the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (AITC), the IRS will delay your return until Feb. 15 at the earliest – even if you file as soon as you can in January.
Tax refund loans, recapped
Tax refund loans help you get your hands on your incoming cash immediately, rather than waiting three to six weeks for the IRS to cough up your money. If you’re considering tax refund cash advance emergency loans in 2025, make sure you read the fine print to avoid surprise fees.
Want to get your tax refund early without applying for a loan? Learn how to file your taxes through Chime, where you can file your federal and state taxes for free and get your federal refund up to 5 days early* when you direct deposit it with Chime.
Frequently asked questions about tax refund loans
Can I get a loan on my tax refund?
If you file your taxes through a tax preparation firm, they may offer you a tax advance loan that lets you get your money shortly after you file. However, not all tax preparation firms offer tax advance loans, and eligibility and loan amounts vary by preparer.
What is the disadvantage of a tax refund advance loan?
Although tax refund advance loans can get money into your hands faster than waiting for the IRS to send your refund, you may have to pay fees or interest that increase the cost of borrowing.
Will I get a tax refund if I owe money on my student loans?
If your student loans are in default, the government can withhold money from your tax refund to put toward paying off your debt. However, if you’re not in default and have been making monthly payments, you should receive your full tax refund.