Want to get your hands on your tax refund a little sooner this tax season? TurboTax offers a "Refund Advance" program that can provide you with a portion of your anticipated federal refund as a loan, often within minutes of the IRS accepting your e-filed return. This can be a game-changer if you need quick access to funds. But how exactly does it work, and are you eligible? Let's dive in!
How to Get Your TurboTax Refund Advance: A Comprehensive Guide
Getting a Refund Advance isn't as simple as clicking a button; there are several steps and eligibility requirements involved. Follow this guide to understand the process thoroughly.
Step 1: Are You Ready to Get Your Refund Sooner? Confirm Your Eligibility!
Before you even start dreaming about how you'll spend that advance, you need to ensure you meet TurboTax's strict eligibility criteria. This is the most crucial first step, as not everyone qualifies.
Sub-heading: Understanding the Basic Requirements
TurboTax, in partnership with a bank (often MVB Bank, Inc., Member FDIC, and sometimes others like First Century Bank, N.A. or WebBank), offers this Refund Advance as a 0% APR loan with $0 loan fees. However, you'll need to tick off several boxes:
E-file Your Federal Tax Return with TurboTax: This is non-negotiable. You must use TurboTax to prepare and e-file your federal tax return.
Anticipated Federal Refund of $500 or More: Your expected federal tax refund needs to be at least $500 to be considered for the advance.
Open a Credit Karma Money™ Spend (checking) Account: If you don't already have one, you'll need to open a Credit Karma Money Spend checking account with MVB Bank, Inc., Member FDIC. This is where your advance (and ultimately your full refund) will be deposited.
Identity Verification and Security Requirements: You'll need to satisfy identity verification and other security checks.
Age Requirement: You must be at least 18 years old.
Valid U.S. Physical Address: Your physical address must be included on your federal tax return and located within the United States or a U.S. territory. P.O. boxes or prison addresses are generally not accepted.
State Restrictions: Residents of certain states may not be eligible. Historically, this has included Illinois (IL), Connecticut (CT), and North Carolina (NC), so it's vital to check the latest terms for the current tax year.
No Deceased Filers: The tax return cannot be filed on behalf of a deceased person.
Specific IRS Forms: Filing certain IRS forms (e.g., 1310, 4852, 4684, 4868, 1040SS, 1040PR, 1040X, 8888, or 8862) might make you ineligible.
Income Reporting: You generally need to have received Forms W-2 or 1099-R, or be reporting income on Schedule C.
No Prior Unpaid Advances: If you did not fully repay a previous Refund Advance loan, you may not be eligible for a new one.
Take a moment right now to review these points carefully. If you don't meet these basic criteria, the Refund Advance might not be an option for you this year.
Step 2: Preparing Your Taxes with TurboTax
Once you've confirmed your potential eligibility, the next step is to accurately prepare your tax return using TurboTax.
Sub-heading: Gathering Your Documents
Before you even open TurboTax, make sure you have all your necessary tax documents organized. This includes:
W-2 Forms (from all employers)
1099 Forms (1099-INT for interest income, 1099-DIV for dividends, 1099-NEC for non-employee compensation, 1099-R for retirement distributions, etc.)
1098 Forms (1098-E for student loan interest, 1098-T for tuition expenses, 1098 for mortgage interest, etc.)
Social Security Numbers for yourself, your spouse, and all dependents.
Records of deductions and credits (e.g., charitable contributions, medical expenses, business expenses).
Last year's tax return can be helpful for reference.
Having everything in order will make the filing process smoother and reduce the chances of errors that could delay your refund or affect your Refund Advance eligibility.
Sub-heading: Choosing the Right TurboTax Product
TurboTax offers various products (e.Tax., Deluxe, Premier, Self-Employed, Live Assisted, Full Service). While the Refund Advance is tied to e-filing your federal return, some products may offer different levels of support. Be aware that while the loan itself is 0% APR, you will still need to pay for the TurboTax product you use to file, unless you qualify for a free version.
Step 3: Navigating the Application Process Within TurboTax
This is where you'll actively apply for the Refund Advance. The option typically appears during the filing process.
Sub-heading: Completing Your Federal Tax Return
Follow TurboTax's step-by-step guidance to accurately complete your federal tax return. Input all your income, deductions, and credits. The software will calculate your estimated refund amount. Remember, your estimated refund needs to be at least $500.
Sub-heading: Opting for the Refund Advance
As you near the end of the filing process, usually when choosing how you want to receive your refund, you will be presented with the option to apply for the TurboTax Refund Advance.
Look for the "Refund Advance" option. It will be clearly labeled.
Follow the Prompts: TurboTax will guide you through the application for the loan. This will involve consenting to a soft credit pull (which typically does not impact your credit score) and agreeing to the terms and conditions of the loan.
Credit Karma Money Account: If you don't have a Credit Karma Money Spend account, you'll be prompted to open one during this step. This account is essential for receiving the advance.
Step 4: E-Filing and Awaiting IRS Acceptance
Your application for the Refund Advance is tied directly to the IRS accepting your e-filed federal tax return.
Sub-heading: E-File Your Federal Return
Once you've completed your return and opted for the Refund Advance, proceed to e-file your federal tax return through TurboTax. Make sure your return is free of errors before filing to avoid delays.
Sub-heading: Waiting for IRS Acceptance
This is the waiting game. The loan approval is contingent on the IRS accepting your e-filed return. The IRS typically begins accepting returns in late January.
You won't receive a final decision on your loan approval until after the IRS accepts your return.
You can track the status of your federal return on the IRS "Where's My Refund?" tool, and also within your TurboTax account.
Step 5: Receiving Your Refund Advance
If approved, the funds are typically disbursed quickly.
Sub-heading: Approval and Deposit
Notification: You will be notified by email or within your TurboTax account if your Refund Advance loan is approved.
Deposit Timeframe: If approved, your Refund Advance is usually deposited into your Credit Karma Money Spend checking account typically within 15 minutes after the IRS accepts your e-filed federal return. Some customers may even receive funds in as little as 60 seconds.
Accessing Funds: You can typically access your funds online through a virtual card immediately. Your physical Credit Karma Visa Debit Card should arrive within 7-14 days.
Sub-heading: Repayment and Remaining Refund
The Refund Advance is a loan that is repaid directly from your federal tax refund when the IRS issues it.
Automatic Repayment: When your full federal tax refund is processed by the IRS, the loan amount will be deducted from it.
Remaining Refund: Any remaining refund amount, after the loan is repaid and any agreed-upon fees (like TurboTax filing fees if you chose to pay from your refund) are deducted, will also be deposited into your Credit Karma Money Spend checking account.
Insufficient Refund: In the rare event that your tax refund is less than the loan amount, you will generally not be required to repay the remaining balance. However, future eligibility for Refund Advance loans may be impacted if the loan is not paid in full.
Important Considerations and Potential Downsides
While the Refund Advance can be a helpful tool, it's essential to understand its nuances:
It's a Loan, Not Your Refund: Despite being interest-free, it's a loan that needs to be repaid by your actual refund.
Tied to TurboTax Filing: You are committed to filing your federal taxes with TurboTax, which may mean paying for their services even if you could have filed for free elsewhere. This is an indirect cost.
Credit Karma Money Account: You're required to use a Credit Karma Money Spend account, which might not be your preferred banking institution.
Approval Not Guaranteed: Meeting the eligibility criteria does not guarantee approval. The final decision is made by the partner bank based on various underwriting standards.
Limited Availability: Refund Advance is typically only available for a specific period during tax season (e.g., January through February or March). If you file later, the offer might no longer be available.
10 Related FAQ Questions: Your Quick Answers
Here are some common questions about the TurboTax Refund Advance:
How to check my Refund Advance status?
You can usually check the status of your Refund Advance within your TurboTax account or on the Credit Karma platform after the IRS accepts your e-filed return.
How to qualify for a TurboTax Refund Advance?
To qualify, you must e-file your federal return with TurboTax, have an anticipated federal refund of $500+, open a Credit Karma Money Spend account, meet identity verification, and reside in an eligible state (not IL, CT, or NC, typically).
How to get my Refund Advance quickly?
E-file your federal return as early as possible after the IRS starts accepting returns (usually late January) and ensure all your information is accurate to minimize delays. Funds are typically available within 15 minutes of IRS acceptance if approved.
How to get a larger Refund Advance amount?
Loan amounts are typically $250, $500, $750, $1,000, $1,500, $2,000, $2,500, $3,000, $3,500, or $4,000, up to a maximum of 50% of your anticipated federal refund. Your eligibility for a specific amount depends on your anticipated refund and the bank's underwriting.
How to access my Refund Advance funds?
If approved, your Refund Advance is deposited into your Credit Karma Money™ Spend (checking) account. You can access funds instantly via a virtual card and later with a physical Credit Karma Visa Debit Card.
How to know if my Refund Advance was approved?
You will typically receive an email notification or see a status update within your TurboTax account once your Refund Advance application has been approved after the IRS accepts your e-filed return.
How to cancel a Refund Advance application?
Once you've e-filed your return and applied for the Refund Advance, it's generally not possible to cancel the application, as the process is tied to your IRS submission.
How to use the Credit Karma Money Spend account?
The Credit Karma Money Spend account functions like a regular checking account. You can use the associated debit card for purchases, withdraw cash from ATMs, and manage your money through the Credit Karma app.
How to get a Refund Advance if I already filed?
Unfortunately, you cannot apply for a Refund Advance after you have already e-filed your tax return. The application must be made during the filing process within TurboTax.
How to get a Refund Advance if I don't have good credit?
Typically, the TurboTax Refund Advance does not require a credit check that impacts your credit score. Approval is primarily based on your anticipated federal refund amount and meeting other eligibility criteria.
