How To Get a Tax Refund Advance

With a tax refund advance loan, you can get the cash you need now while you wait for your tax refund. If you need to cover an immediate expense and know the government owes you a refund, you may be able to benefit from this loan. And if you are looking for tax refund loan alternatives, Advance America offers a variety of online loans that can get you cash fast. Learn more about what a tax refund advance loan is, how you can get one, and what your tax refund loan alternatives are.

What is a tax refund advance?

A tax refund advance is a loan based on your upcoming tax refund. The value of your anticipated tax refund and the lender you select will determine how much money you can receive. Most tax refund loans, however, range from $200 to $3,500.

Keep in mind that a tax refund advance loan is a short-term financing option that typically lasts a few weeks as you wait for the government to process your tax refund.

How a tax refund advance loan works

Tax refund loans are usually offered by financial institutions that partner with tax-preparation companies. If you apply and get approved for a tax refund advance, you’ll likely receive your money via direct deposit or a prepaid card.

Once the government processes your refund within a few weeks, it’ll get sent directly to the lender. The lender will automatically deduct your loan amount plus fees and give you any remaining funds.

Tax return vs. tax refund

A tax return is a document that lists all of the income you received during the previous year and the taxes that were withheld from each paycheck. A tax refund is money that the government gives back to you because too much tax was withheld from your paychecks.

Here are two differences between tax refunds and tax returns:

  • A tax return is an annual document, while a tax refund can be either annual or quarterly.
  • A tax refund is typically less than the total amount of taxes that were withheld, while a tax return may result in no refund at all or even an outstanding balance owed to the government.

RELATED: 10 Things To Know About Tax Refunds

Benefits of a tax refund advance loan

Easy qualification requirements. Many tax refund loans are easy to qualify for. You don’t need perfect credit.

Quick access to your funds. If you need cash immediately to pay for an expense or avoid some interest charges on high-interest debt, a tax refund advance loan can provide you with funds quickly. You won’t have to wait weeks or months to receive the money.

You may be able to forgo loan payments. Your tax refund will be sent directly to your lender. Therefore, you may not have to worry about on-time payments or repay your tax refund advance loan in full.

Drawbacks of a tax refund advance loan

You must hire a company to file your taxes. You will have to hire the tax-preparation service who offers the tax refund loan to do your taxes. This can be an issue if you prefer to file your own taxes.

You may receive less than anticipated. If the IRS withholds your tax refund or the tax service made an error in calculating it, you won’t get the amount of money you expected. You’ll need to repay your tax refund advance loan in full or settle for less money.

Potential fees. Tax refund advance loans are not free. If you opt for one, you may have to pay interest and fees to get your taxes prepared or the administrative costs that come with transferring your refund.

Tax refund advance FAQs

Can I get a tax advance refund online?

Yes. Taxpayers have several ways to get a tax refund loan. You may be  able to apply and get approved online from the comfort of your home, or you can go to a tax-preparation company’s office to receive the funds you need. 

When are tax refund loans available?

If you have filed your federal income tax return and qualify for a refund, you may be wondering when you can receive a tax refund advance loan. Taxpayers can typically receive this loan between January and late February each year.

Is a tax refund loan right for me?

To decide whether a tax refund advance loan is the right choice for you, consider your financial situation. If you need funds right away to cover expenses, then a tax refund loan may make sense. But if you need more money than your tax refund advance loan will give you or don’t want to hire a tax-preparation service, you may want to consider alternatives like an installment loan or title loan. With these loans, you can get the cash you need at any time of the year.

How to get a tax refund advance loan

To get a tax refund advance loan, you can apply with a tax-preparation company. They’ll likely ask you to provide financial documents like your W2s and will calculate your anticipated tax refund for you.

If you owe money on your taxes or are owed a very small tax refund, you may not be eligible for a tax refund loan. In the event you are eligible and get approved for one, you can usually receive the money within 24 hours.

RELATED: How To Get Your Tax Refund Early

Tax refund loan alternatives from Advance America

If you don’t want to borrow money against your tax return, Advance America can be a great resource for you. We offer Cash Advances, Installment Loans, Lines of Credit and Online Loans to provide you with the cash you need almost immediately. You can apply from the comfort of your own home and, if approved, receive your funds within 24 hours.

With Advance America loans, you don’t need a perfect credit history to get approved and can get quick access to the cash you need for daily finances and unexpected expenses. 

The Advance America advantage

Since 1997, Advance America has helped millions of hardworking people with a variety of financial solutions including Payday Loans, Online Loans, Installment Loans, Title Loans and Personal Lines of Credit.
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