Ready to get a jump start on your tax refund? Many people eagerly await their tax refund each year, and the TurboTax Refund Advance program can be a great way to get your hands on some of that money much sooner. It's essentially a short-term loan based on your anticipated federal tax refund, offered with 0% APR and no loan fees.
But how exactly does it work, and are you eligible? This comprehensive guide will walk you through everything you need to know about getting a TurboTax Refund Advance.
What is the TurboTax Refund Advance?
The TurboTax Refund Advance is not your actual tax refund. Instead, it's a 0% APR, no-fee loan offered by a partner bank (like MVB Bank, Inc., Member FDIC, or WebBank) based on a portion of your expected federal tax refund. This means you can get access to some of your refund money much faster than waiting for the IRS to process your return. Once your actual federal refund is processed, the loan is automatically repaid from that refund.
Step 1: Are You Eligible? Let's Find Out Together!
The first and most crucial step is to determine if you meet the eligibility criteria for the TurboTax Refund Advance. This program isn't available to everyone, and there are specific requirements you need to fulfill. So, let's go through them carefully:
Sub-heading: Basic Eligibility Requirements
E-file your federal tax return with TurboTax: This is a non-negotiable. You must prepare and e-file your federal tax return using TurboTax software (online or desktop).
Anticipated federal refund of at least $500: Your expected federal refund amount needs to be a minimum of $500 to qualify for the advance.
Open or have a Credit Karma Money™ Spend (checking) account: If approved for the Refund Advance, the funds will be deposited into a Credit Karma Money Spend checking account. If you don't have one, you'll need to open one during the application process. This account is subject to its own eligibility and identity verification.
Age Requirement: You must be at least 18 years old.
Valid U.S. Physical Address: Your physical residence must be located within the United States (excluding certain states, which we'll cover next) and cannot be a PO box or prison address. The address on your tax return must match your physical address.
Income Reporting: You generally need to be reporting income on a Form W-2, 1099-R, or Schedule C.
Sub-heading: Ineligibility Factors to Be Aware Of
You will not be eligible for the TurboTax Refund Advance if:
Your physical residence is in Illinois (IL), Connecticut (CT), or North Carolina (NC).
You are filing on behalf of a deceased person.
You are filing certain IRS forms: 1310, 4852, 4684, 4868, 1040SS, 1040PR, 1040X, 8888, or 8862. These forms often involve more complex tax situations that may not align with the program's requirements.
Your anticipated refund amount is less than $500.
You did not receive Forms W-2 or 1099-R, or you're not reporting income on Schedule C.
Important Note: Eligibility is also subject to satisfaction of identity verification, certain security requirements, and underwriting standards by the partner bank. Meeting all the above doesn't guarantee approval.
Step 2: Preparing Your Taxes with TurboTax
Assuming you've checked off the eligibility boxes, the next step is to accurately prepare your federal tax return using TurboTax.
Sub-heading: Choosing the Right TurboTax Product
TurboTax offers various products, from free editions for simple returns to more comprehensive options for complex situations or those who want expert assistance. While some sources might suggest that you must use a paid TurboTax product to qualify for the Refund Advance, the official TurboTax information indicates that you must simply e-file your federal tax return with TurboTax. This implies that if you qualify for the Free Edition and meet all other Refund Advance criteria, you should still be able to apply.
For Simple Returns: If you have a straightforward tax situation (e.g., W-2 income, standard deduction, EITC, CTC, student loan interest), you might qualify for the TurboTax Free Edition.
For More Complex Returns: If you have itemized deductions, self-employment income (1099-NEC), stock sales, rental property income, or other complex scenarios, you'll likely need a paid version of TurboTax (e.g., Deluxe, Premier, Self-Employed).
Expert Assistance: If you prefer a tax expert to do your taxes or provide assistance, consider TurboTax Live Assisted or TurboTax Live Full Service.
Sub-heading: Accurate and Complete Information is Key
Gather all your tax documents: This includes W-2s, 1099s (for interest, dividends, self-employment, etc.), 1098s (mortgage interest, student loan interest), and any other relevant financial statements.
Enter your information carefully: Double-check every entry for accuracy. Errors or omissions can delay your refund or even lead to a reduced refund amount, which could impact your Refund Advance eligibility or the amount you receive.
Review your return thoroughly: Before you finalize and e-file, take the time to review your entire tax return. TurboTax has built-in checks, but a personal review can catch anything missed.
Step 3: Applying for the Refund Advance During Filing
The application for the Refund Advance is integrated directly into the TurboTax filing process. You won't apply separately on another website.
Sub-heading: The Moment of Decision
When you select your refund method: As you near the end of the tax filing process in TurboTax, you will be presented with options for how you want to receive your federal tax refund. This is where you'll see the option to apply for the TurboTax Refund Advance.
Opt-in for the advance: If you're eligible and interested, you'll select the Refund Advance option. You will likely be asked to consent to the terms and conditions of the loan and authorize the sharing of your tax information with the partner bank for underwriting purposes.
Credit Karma Money™ Account: If you don't already have a Credit Karma Money Spend account, you will be prompted to open one at this stage. This process involves identity verification.
Sub-heading: Understanding Loan Amounts
If approved, your Refund Advance loan will be for one of several predetermined amounts, typically ranging from $250 to $4,000. The exact amount you receive will be based on a portion of your anticipated federal refund, up to a maximum of 50% of that refund amount, and subject to the lender's underwriting standards. You may not receive the maximum advance amount even if your refund is substantial.
Step 4: After You File: Approval and Funding
This is where the waiting game begins, albeit a much shorter one than waiting for your full refund!
Sub-heading: IRS Acceptance is Crucial
Prequalification vs. Final Approval: You might receive an initial "prequalification" for the Refund Advance. However, final approval for the loan is contingent upon the IRS accepting your e-filed federal tax return. This means the IRS must officially acknowledge receipt and initial processing of your return.
Monitoring Your Status: You can track the status of your e-filed return through the IRS "Where's My Refund?" tool and often within your TurboTax account.
Sub-heading: Receiving Your Funds
Deposit to Credit Karma Money™: If approved, your Refund Advance will be deposited into your Credit Karma Money™ Spend checking account. TurboTax states this typically happens within 15 minutes after the IRS accepts your e-filed federal return.
Accessing Your Funds: You can usually access your funds immediately via a virtual debit card linked to your Credit Karma Money account. A physical Credit Karma Visa Debit Card should arrive in the mail within 7-14 days. You can use these funds anywhere Visa is accepted, and once you receive your physical card, you can also withdraw cash at fee-free ATMs within the Allpoint network.
Step 5: Repaying the Refund Advance
This step is the easiest, as it happens automatically!
Sub-heading: Automatic Repayment
From your federal refund: When the IRS processes and issues your full federal tax refund, the Refund Advance loan amount is automatically deducted from your refund by the partner bank.
Remaining refund deposited: The remaining balance of your federal refund (after the advance and any TurboTax fees you opted to pay from your refund) will then be deposited into your Credit Karma Money™ Spend checking account.
Sub-heading: What if Your Refund is Less Than Expected?
It's crucial to understand that if, for any reason, your actual federal tax refund ends up being less than the amount of your Refund Advance loan, you will be responsible for repaying the difference to the lender. If the loan is not paid in full, you may not be eligible for a Refund Advance loan in the future.
Tip: Use the TurboTax refund estimator (TaxCaster) beforehand to get a good idea of your anticipated refund and avoid any surprises.
Final Thoughts on the TurboTax Refund Advance
The TurboTax Refund Advance can be a valuable tool for those who need quick access to a portion of their expected tax refund. It's appealing due to its 0% APR and no loan fees. However, it's essential to understand the eligibility requirements, the process, and how the repayment works. Always ensure the accuracy of your tax return to prevent any issues with your refund amount.
10 Related FAQ Questions
How to check my TurboTax Refund Advance status?
You won't receive a final decision on your Refund Advance until after the IRS accepts your e-filed federal tax return. Once accepted, if approved, funds are typically deposited within 15 minutes into your Credit Karma Money™ Spend account. You can track your IRS refund status via the "Where's My Refund?" tool on the IRS website. For specific Refund Advance status inquiries, you might need to contact Credit Karma or the partner bank directly if you have their contact information.
How to qualify for a TurboTax Refund Advance?
To qualify, you must e-file your federal tax return with TurboTax, have an anticipated federal refund of at least $500, be 18 or older, have a valid U.S. physical address (not in IL, CT, or NC), not be filing for a deceased person or using certain complex IRS forms, and open or have a Credit Karma Money™ Spend checking account.
How to get my TurboTax Refund Advance faster?
The Refund Advance is generally deposited very quickly (typically within 15 minutes) after the IRS accepts your e-filed return. The key to getting it faster is to file your taxes as early as possible in the tax season and ensure your return is accurate to avoid any IRS processing delays.
How to repay my TurboTax Refund Advance?
The repayment is automatic. When the IRS processes and issues your full federal tax refund, the Refund Advance loan amount is automatically deducted from your refund by the partner bank before the remaining balance is deposited into your Credit Karma Money™ Spend account.
How to get a larger TurboTax Refund Advance amount?
The amount of your Refund Advance is based on a portion of your anticipated federal refund, up to a maximum of $4,000, and is subject to the lender's underwriting standards. To potentially get a larger advance, ensure your expected refund is substantial. However, you cannot directly influence the loan amount beyond having a higher anticipated refund and meeting all eligibility criteria.
How to use my Credit Karma Money™ Spend account for the Refund Advance?
If approved, your Refund Advance is deposited directly into your Credit Karma Money™ Spend checking account. You can then access these funds using the virtual debit card immediately or the physical Credit Karma Visa Debit Card once it arrives. You can use it anywhere Visa is accepted, including for online purchases, in-store transactions, and ATM withdrawals (fee-free at Allpoint network ATMs).
How to contact TurboTax about my Refund Advance?
For general information about the Refund Advance program, you can refer to the TurboTax support pages. However, for specific questions about your Refund Advance application or disbursement, you may need to contact Credit Karma or the partner bank (e.g., MVB Bank, Inc. or WebBank) directly, as they are the lenders of the advance.
How to get a Refund Advance if I don't use TurboTax?
Many other tax preparation services, such as H&R Block and Jackson Hewitt, also offer tax refund advance loans. Each service has its own eligibility requirements, partner banks, and terms, so you would need to explore their specific offerings.
How to know if my Refund Advance was approved?
You will typically receive a notification (often via email or within your TurboTax account) once the IRS accepts your return and your Refund Advance has been approved and disbursed to your Credit Karma Money™ Spend account. You can also check your Credit Karma Money™ Spend account balance.
How to avoid issues with my TurboTax Refund Advance?
To avoid issues, ensure you meet all eligibility requirements, accurately prepare and e-file your federal tax return with TurboTax, and understand that final approval hinges on IRS acceptance of your return. Be aware that if your actual refund is less than the advance, you will owe the difference.
