The waiting game after filing your taxes can feel like an eternity, especially when you're counting on that refund for important expenses. Wouldn't it be great to get your hands on some of that money sooner? If you're a TurboTax user, you might be in luck! TurboTax offers a "Refund Advance" loan, allowing eligible filers to get a portion of their anticipated federal tax refund quickly.
This comprehensive guide will walk you through everything you need to know about borrowing from TurboTax, step by step, to help you understand if it's the right option for you.
Understanding the TurboTax Refund Advance
Before we dive into the "how-to," let's clarify what the TurboTax Refund Advance actually is. It's not your tax refund itself, but rather a 0% APR loan with $0 loan fees based on your anticipated federal tax refund. This loan is issued by a partner bank (like First Century Bank, N.A., or WebBank) and facilitated by Intuit (TurboTax's parent company). The idea is to bridge the gap between when you file your taxes and when the IRS actually processes and sends out your refund.
Key Features of the Refund Advance:
0% APR and $0 Loan Fees: This is a major perk, as you won't pay interest or fees on the loan itself.
Quick Access to Funds: If approved, funds can be deposited into a Credit Karma Money™ Spend (checking) account, often within 15 minutes of IRS acceptance of your e-filed federal return.
Loan Amounts: The loan amounts typically range from $250 to $4,000, in increments like $250, $500, $750, $1,000, $1,500, $2,000, $2,500, $3,000, $3,500, or $4,000. Your approved amount is based on a portion of your anticipated federal refund, up to a maximum of 50% of that refund amount.
No Credit Score Impact: Applying for the Refund Advance generally does not impact your credit score.
Automatic Repayment: When your official federal refund is issued by the IRS, the loan amount is automatically paid back from your refund. The remaining balance of your refund (if any) is then deposited into your Credit Karma Money™ Spend account.
Step 1: Are You Eligible? Let's Find Out Together!
The very first thing you need to determine is if you meet the eligibility criteria for the TurboTax Refund Advance. This is crucial, as not everyone will qualify. Let's go through the requirements:
Sub-heading: Basic Eligibility Checklist
E-file your federal tax return with TurboTax: This is a non-negotiable requirement. You must use TurboTax to prepare and e-file your federal return.
Expected Federal Refund Amount: Your anticipated federal refund must be at least $500.
Age Requirement: You must be 18 years or older.
Physical Address: Your physical address must be included on your federal tax return and located within an eligible state. P.O. boxes or prison addresses are generally not accepted.
State Residency Restrictions: Currently, residents of Illinois (IL), Connecticut (CT), and North Carolina (NC) are typically not eligible for the Refund Advance.
No Filing on Behalf of a Deceased Person: The tax return filed cannot be on behalf of a deceased individual.
Specific IRS Forms: You generally cannot be filing certain IRS forms such as 1310, 4852, 4684, 4868, 1040SS, 1040PR, 1040X, 8888, or 8862.
Income Reporting: You must be reporting income on a Form W-2, 1099-R, or Schedule C.
Credit Karma Money™ Spend Account: You must either currently have or open a Credit Karma Money™ Spend (checking) account with MVB Bank, Inc., Member FDIC. This is where your Refund Advance, if approved, and the remainder of your refund will be deposited. Opening this account is subject to eligibility and identity verification.
Take a moment to review this list carefully. If you don't meet all of these criteria, the Refund Advance might not be an option for you, and you may need to consider other alternatives for quick cash.
Step 2: Preparing Your Federal Tax Return with TurboTax
Assuming you meet the initial eligibility, the next step is to accurately prepare your federal tax return using TurboTax.
Sub-heading: Gather Your Documents
All income statements: W-2s, 1099s (for interest, dividends, independent contractor income, etc.).
Deduction and credit information: Mortgage interest statements (Form 1098), student loan interest statements, charitable contribution records, medical expense receipts, etc.
Previous year's tax return: This can be a helpful reference.
Personal identification: Social Security numbers for yourself, your spouse, and dependents.
Sub-heading: Navigate the TurboTax Software
Proceed through the TurboTax interview process, carefully entering all your income, deductions, and credits. The software is designed to guide you step-by-step, making the process as straightforward as possible. Double-check all your entries for accuracy – errors can delay your refund or even affect your eligibility for the advance.
Step 3: Opting-In for the Refund Advance
Once you've completed your tax return and TurboTax has calculated your estimated federal refund, you'll reach the section where you choose how to receive your refund. This is where the Refund Advance option will appear if you are eligible.
Sub-heading: Selecting Your Refund Method
As you progress through the "File" section of TurboTax, you will be presented with various options for how you want to receive your refund.
Look for the "Refund Advance" option. It will typically be presented alongside other choices like direct deposit to your own bank account or receiving a check.
Carefully read the disclosures and terms associated with the Refund Advance. This will explain the loan amount options, repayment terms, and any other important details.
If you choose to apply for the Refund Advance, you will likely be prompted to open or confirm your Credit Karma Money™ Spend (checking) account. This account is essential for receiving the advance and your remaining refund.
Step 4: Application and IRS Acceptance
After opting in for the Refund Advance, the process moves into the application phase, which is closely tied to the IRS accepting your e-filed return.
Sub-heading: Submitting Your Application
By selecting the Refund Advance option, you are effectively submitting an application for the loan through TurboTax's partner bank.
There is generally no separate loan application to fill out beyond choosing the option within TurboTax. Your tax return information serves as the basis for the loan application.
E-file your federal tax return. This is the final step in the application process. The loan approval is contingent on the IRS accepting your e-filed federal tax return.
Sub-heading: Waiting for IRS Acceptance
You will not receive a final decision on your Refund Advance approval until the IRS has accepted your e-filed federal tax return. The IRS typically begins accepting e-filed returns in late January each year.
Once your return is accepted by the IRS, the loan decision will be made by the partner bank.
If approved, your Refund Advance funds are usually deposited into your Credit Karma Money™ Spend account within 15 minutes of IRS acceptance. You can often access these funds immediately via a virtual debit card and a physical card will be mailed to you.
Step 5: Receiving Your Funds and Repayment
If approved, congratulations! You'll get your hands on a portion of your refund quickly. The repayment process is seamless.
Sub-heading: Accessing Your Advance
Your approved Refund Advance amount will be deposited into your Credit Karma Money™ Spend checking account.
You can typically access these funds almost immediately through a virtual Credit Karma Visa® Debit Card, which you can add to your mobile wallet for instant spending.
A physical Credit Karma Visa® Debit Card will also be mailed to you, usually arriving within 7-14 days.
Sub-heading: Automatic Repayment
When the IRS processes your full federal tax refund, the partner bank will automatically deduct the Refund Advance loan amount from your refund.
The remaining portion of your federal refund, along with any state refund you may be due (if applicable), will then be deposited into your Credit Karma Money™ Spend account.
Important Note: If your tax refund is insufficient to cover the loan amount, you generally will not be required to repay the remaining balance. However, if the loan is not paid in full, you may not be eligible for future Refund Advance loans.
Frequently Asked Questions (FAQs)
Here are 10 common questions about the TurboTax Refund Advance:
How to check my Refund Advance status?
You'll typically receive updates within the TurboTax platform and through Credit Karma regarding your application and deposit status. You can also check the Credit Karma Money™ app.
How to pay back the TurboTax Refund Advance?
The loan is automatically paid back from your federal tax refund once the IRS issues it. You don't need to do anything manually.
How to get more than $4,000 with a TurboTax Refund Advance?
The maximum loan amount offered is typically $4,000, based on a portion of your anticipated federal refund. You cannot get more than this through the Refund Advance program.
How to qualify for the maximum Refund Advance amount?
The loan amount you qualify for depends on your anticipated federal refund amount and other underwriting standards of the partner bank. Generally, a larger refund increases your chances of a higher advance, up to the $4,000 limit.
How to use the Credit Karma Money™ Spend account?
Once your funds are deposited, you can use the virtual card immediately for online purchases or by adding it to your mobile wallet for in-store purchases. The physical card works like a regular debit card for spending and ATM withdrawals (note: ATM fees may apply outside the Allpoint network).
How to get a Refund Advance if I don't have a W-2 or 1099-R?
To be eligible, you generally need to report income on a Form W-2, 1099-R, or Schedule C. If you don't have these, you likely won't qualify for the Refund Advance.
How to contact TurboTax customer service about Refund Advance?
For questions specific to the Refund Advance, it's best to check the TurboTax support website or contact their customer service directly. You can typically find their contact information within your TurboTax account or on their "Contact Us" page.
How to get a Refund Advance if I live in Illinois, Connecticut, or North Carolina?
Unfortunately, residents of these states are typically not eligible for the TurboTax Refund Advance program. You would need to wait for your regular federal refund or explore other financial options.
How to avoid paying fees for TurboTax if I get a Refund Advance?
While the Refund Advance loan itself has no fees, you might incur separate fees if you choose to pay for your TurboTax product or services with your federal refund. To avoid this, you can pay for TurboTax upfront with a credit card or other payment method.
How to get a refund advance if my refund is less than $500?
The Refund Advance program typically requires a minimum anticipated federal refund of $500. If your refund is less than this, you will not be eligible for the advance.
