Applying for a refund advance through TurboTax can be a game-changer if you're eagerly awaiting your tax refund and need funds sooner rather than later. It's essentially a short-term, zero-interest loan based on your anticipated federal tax refund, provided by a third-party bank in partnership with TurboTax.
Are you ready to explore how you can potentially get your hands on your refund well before the IRS typically processes it? Let's dive in!
How to Apply for Refund Advance with TurboTax: Your Step-by-Step Guide
This guide will walk you through the process, from understanding eligibility to receiving your funds. Remember, while a refund advance can be incredibly helpful, it's a loan and not your actual refund. Your actual refund will eventually be used to repay this loan.
Step 1: Understand What TurboTax Refund Advance Is (and Isn't!)
Before you even think about applying, it's crucial to grasp what the TurboTax Refund Advance program truly offers.
What it Is:
A 0% APR loan with no loan fees. This means you won't be charged interest or any extra fees for taking this advance.
It's based on your anticipated federal tax refund. The amount you could receive depends on your expected refund size and other underwriting factors.
Funds are typically deposited into a Credit Karma Money™ Spend (checking) account, often within minutes of the IRS accepting your e-filed return.
It provides quick access to a portion of your refund, which can be invaluable for unexpected expenses or urgent needs.
What it Isn't:
It is NOT your actual tax refund. It's a loan that your refund will later pay back.
It's NOT guaranteed. Eligibility is subject to identity verification, security requirements, and the lender's underwriting standards.
It's NOT available for all tax situations or states. Certain forms and filing scenarios might disqualify you.
Step 2: Check Your Eligibility for TurboTax Refund Advance
Not everyone qualifies for a Refund Advance. Before you invest time in preparing your taxes, ensure you meet the core criteria. TurboTax and its lending partners have specific requirements.
Sub-heading: Key Eligibility Criteria
File with TurboTax: You must e-file your federal tax return using a TurboTax product. This is a non-negotiable requirement.
Anticipated Federal Refund: You need to be expecting a federal tax refund. The loan amount will be a portion of this expected refund.
Minimum Refund Amount: Your expected federal refund generally needs to be at least $500.
Valid Physical Address: Your physical address must be included on your federal tax return and cannot be a P.O. Box, prison address, or located outside of the United States or a U.S. territory. Some states may also be excluded (e.g., Illinois, Connecticut, North Carolina have been excluded in the past).
Age Requirement: You must be at least 18 years old.
Income Reporting: You generally need to report income on a Form W-2, 1099-R, or Schedule C.
No Deceased Filers: You cannot be filing on behalf of a deceased person.
Specific IRS Forms: You will not be eligible if you are filing certain IRS forms, including but not limited to: Form 1310, 4852, 4684, 4868, 1040SS, 1040PR, 1040X, 8888, or 8862.
Credit Karma Money™ Spend Account: You must either already have, or be willing to open, a Credit Karma Money™ Spend (checking) account with MVB Bank, Inc., Member FDIC. This is where your funds will be deposited if approved. Opening this account is subject to identity verification and eligibility.
It's important to note that even if you meet all these criteria, final approval is not guaranteed until after the IRS accepts your e-filed return.
Step 3: Prepare Your Tax Documents with Precision
Accuracy is paramount when filing your taxes, especially when you're looking for a refund advance. Any errors could delay your refund or even disqualify you from the advance.
Sub-heading: Essential Documents to Gather
Income Documents:
Form W-2s (from all employers)
Form 1099-INT (interest income)
Form 1099-DIV (dividend income)
Form 1099-R (retirement distributions)
Form 1099-NEC (nonemployee compensation, if self-employed/gig worker)
Other income statements (e.g., from investments, unemployment, rental property, etc.)
Deductions and Credits:
Student loan interest statements (Form 1098-E)
Mortgage interest statements (Form 1098)
Property tax records
Medical expense records
Childcare expenses
Education expenses (Form 1098-T)
Charitable contribution receipts
Records for any other eligible deductions or credits you plan to claim.
Personal Information:
Social Security Numbers (SSN) for yourself, your spouse (if filing jointly), and all dependents.
Dates of birth for everyone on your return.
Bank account information (for direct deposit of your refund or to link with Credit Karma Money™).
Double-check all figures and ensure they match your official documents. This will help prevent rejections and delays.
Step 4: File Your Federal Tax Return with TurboTax
This is where the magic happens! As you go through the TurboTax filing process, you'll be prompted with the option to apply for the Refund Advance.
Sub-heading: Navigating the TurboTax Interface
Choose Your TurboTax Product: Select the TurboTax product that best suits your tax situation (e.g., TurboTax Deluxe, Premier, Self-Employed).
Enter Your Information: Follow the step-by-step prompts to input all your income, deductions, and credit information accurately. TurboTax is designed to make this as straightforward as possible, asking simple questions to guide you.
Review Your Return: Before proceeding, carefully review your entire tax return for any errors or omissions. TurboTax's "CompleteCheck™" feature can help scan for potential issues.
Select Your Refund Option: This is the crucial step for the Refund Advance. When you reach the section where you choose how to receive your refund, you will see the "Refund Advance" option. Select this.
Apply for Refund Advance: You'll then be guided through a few easy steps to apply for the Refund Advance. This will involve consenting to the terms and conditions and allowing the lender (First Century Bank, N.A., or WebBank) to perform a soft credit inquiry. This soft inquiry typically does not affect your credit score.
Open or Link Credit Karma Money™ Spend Account: If you don't already have one, you'll be prompted to open a new Credit Karma Money™ Spend (checking) account. This is usually a seamless process integrated with your TurboTax experience. If you already have one, you'll link it.
E-File Your Federal Return: Once you've completed the Refund Advance application and selected it as your refund method, proceed to e-file your federal tax return. Remember, the IRS typically starts accepting returns in late January.
Step 5: Wait for IRS Acceptance and Loan Approval
After you've e-filed, there's a waiting period. The Refund Advance decision isn't instantaneous upon filing; it's contingent on the IRS accepting your e-filed return.
Sub-heading: The Waiting Game
IRS Acceptance: The IRS generally takes 24-48 hours to accept e-filed returns. You'll receive an email notification from TurboTax once your return has been accepted by the IRS.
Loan Underwriting: Once the IRS accepts your return, the lender will finalize their underwriting process. This is when the final decision on your Refund Advance application is made.
Notification of Approval: If approved, you could receive your Refund Advance deposited into your Credit Karma Money™ Spend account in as little as 60 seconds after IRS acceptance. You'll typically be notified via email or through the Credit Karma app.
Patience is key during this stage. While some users report receiving funds within minutes of IRS acceptance, times can vary.
Step 6: Access and Manage Your Refund Advance Funds
Congratulations, if approved! Now it's time to access and use your funds responsibly.
Sub-heading: Using Your Funds
Virtual Debit Card: Upon approval and deposit into your Credit Karma Money™ Spend account, you can immediately access your Refund Advance using a virtual Credit Karma Visa® debit card. This can be used for online purchases or linked to mobile payment apps.
Physical Debit Card: A physical Credit Karma Visa® Debit Card will typically arrive in the mail within 7-14 days. Once you receive it, activate it to use for in-store purchases and ATM withdrawals.
Repayment: The Refund Advance loan is automatically repaid when your federal tax refund is processed and disbursed by the IRS. The loan amount is deducted directly from your refund, and any remaining balance of your federal or state refund will then be deposited into your Credit Karma Money™ Spend account.
It's important to track your spending and understand that this is a loan that will be repaid by your actual tax refund. If your refund is significantly less than anticipated, you may still be responsible for the remaining loan balance.
10 Related FAQ Questions:
How to check my Refund Advance status?
You can generally check the status of your Refund Advance within your TurboTax account or through the Credit Karma app once you've applied and your return has been accepted by the IRS.
How to increase my chances of getting a Refund Advance?
To increase your chances, ensure all your tax information is accurate, file early in the tax season, meet all eligibility criteria, and have a clear federal refund amount (ideally $500 or more).
How to use my Refund Advance funds?
Once deposited into your Credit Karma Money™ Spend account, you can use the funds with your virtual debit card for online purchases or through mobile payment apps. Your physical debit card will arrive later for in-store use and ATM withdrawals.
How to repay the TurboTax Refund Advance?
The Refund Advance is automatically repaid by your federal tax refund when the IRS processes and sends it to the lender. You don't need to do anything manually.
How to know if I was approved for Refund Advance?
You will typically receive a notification via email from TurboTax or Credit Karma, and you can check your Credit Karma Money™ Spend account for the deposited funds.
How to get my remaining refund after the advance?
Any remaining amount of your federal refund (after the advance is repaid) and/or your state refund will be deposited into your Credit Karma Money™ Spend account once processed by the IRS and state tax authorities.
How to avoid issues with my Refund Advance application?
Ensure you meet all eligibility requirements, double-check all tax information for accuracy, and do not file any of the disqualifying IRS forms.
How to contact support about my Refund Advance?
For specific questions about your Refund Advance, you may need to contact Credit Karma or the lending bank (First Century Bank, N.A., or WebBank) directly. TurboTax support can help with general questions about the application process within their software.
How to cancel a Refund Advance application?
Once you have applied and e-filed your return with the Refund Advance selected, it is generally not possible to cancel the application. The process is initiated upon IRS acceptance.
How to get a Refund Advance if I don't use TurboTax?
If you don't use TurboTax, you would need to explore other tax preparation services (like H&R Block) that offer similar refund advance programs, as these are typically tied to the filing service.