A 2023 tax refund advance loan is a short-term, typically 0% interest loan offered by tax prep companies (like H&R Block or TurboTax Support) in early 2024, allowing taxpayers to receive a portion of their expected tax refund (often $250 to $4,000) within 24 hours of filing. It uses the refund as collateral and is repaid directly from the IRS deposit.
The Tax Refund Advance (TRA) is a convenient way to get money before you get your tax refund. It is a loan which is paid back by your tax refund and has a 35.99% Annual Percentage Rate (APR). Clients can apply for a Tax Refund Advance loan when they file taxes at Jackson Hewitt starting on January 2, 2026.
What is Refund Advance loan? Refund Advance loan is a no-interest loan that is repaid with your tax refund. File your taxes at a participating H&R Block office and apply between January 2, 2026 and March 15, 2026. If approved, a loan will be issued in one of six amounts ($250, $500, $750, $1,250, $2,500, $4,000).
A major drawback of Refund Anticipation Loans is cost. RALs often come with high fees and interest rates. Fees may include processing charges, loan origination fees, or even fees for tax preparation services bundled with the loan, which significantly reduce the amount of money you'll receive.
Not all consumers will qualify for a loan or for the maximum loan amount. If approved, your loan will be for one of ten amounts: $250, $500, $750, $1,000, $1,500, $2,000, $2,500, $3,000, $3,500, or $4,000. Your loan amount will be based on your anticipated federal refund up to a maximum of 50% of that refund amount.
You owed the U.S. Government or your State. You had debt enforced by a State such as, but not limited to, child support obligations, past student loans, tax liens, and any other payments owed to a Federal or State agency. You did not pass the lender's final evaluation.
You don't have to have a good credit score to be approved for a Jackson Hewitt Tax Refund Advance loan. In fact, we have high approval rates for both the Early Tax Refund Advance loan2 and the Tax Refund Advance loan,4 and you may be approved even if you have a poor credit score.
Interest on refunds
Under Section 244A, the interest rate is 6% per annum, which works out to 0.5% per month on the refund amount.
You can get your tax refund faster by e-filing and selecting direct deposit as your payment method. When you file your taxes through Chime, you could get your federal tax refund up to 5 days early^ when you direct deposit with Chime.
Refund Advance funds are typically available within 15 minutes of the IRS accepting your e-filed tax return, if you're approved. We'll send you an email when your Refund Advance funds are available.
Request an expedited refund by calling the IRS at 800-829-1040 (TTY/TDD 800-829-4059). Request a manual refund expedited to you.
TurboTax partnered with WebBank and First Century Bank to offer zero-interest refund advance loans ranging from $250 to $4,000. To qualify, you must e-file with TurboTax, open or have a Credit Karma Money checking account and meet other underwriting requirements.
Criteria Under Which Advance Tax Interest Is Not Payable
The taxpayer has paid in full, the tax payable on the income mentioned above while paying the remaining instalments of advance tax due, or if no instalment is due, the taxpayer pays them before the end of the financial year.
A Refund Advance Loan from Refund Advantage for $250, $500, or $1,000 carries a 0% APR1,2. That means the fee to you is $0. For Refund Advances of $1,250 or more - the loan carries a 36% APR.
While you don't necessarily need good credit to get these types of loans, there are some things that might disqualify you. If there are reasons your tax refund might be offset—including owing child support, federal student loans, or back taxes—a lender is unlikely to advance the funds.
Not reporting all of your income is an easy-to-avoid red flag that can lead to an audit. Taking excessive business tax deductions and mixing business and personal expenses can lead to an audit. The IRS mostly audits tax returns of those earning more than $200,000 and corporations with more than $10 million in assets.