TurboTax Refund Advance Overview
TurboTax offers a way to access your tax refund quickly with its Refund Advance option, enabling users to get a portion of their refund in advance as a no-interest loan.
Understanding Refund Advance Loans
A Refund Advance loan is effectively a way to receive a part of your anticipated federal refund sooner than the standard IRS processing time. It’s a short-term loan, which is repaid when you receive your actual tax refund. The advance comes with a $0 fee and 0% APR. Loan amounts can vary, typically offering several options up to a maximum of $4,000.
Eligibility for TurboTax Refund Advance
To be eligible for a TurboTax Refund Advance, certain requirements must be met. These include having an e-filed federal tax return with TurboTax and expecting a sufficient federal refund. The IRS must accept your return before the advance is approved and disbursed. The specific eligibility requirements can be found in TurboTax’s service details, but generally, they relate to the expected refunded amount and other criteria set by TurboTax.
How to Apply for TurboTax Refund Advance
Applying for a TurboTax Refund Advance is a straightforward process designed to give eligible taxpayers quick access to funds. The application involves a few key steps and requires specific financial documents.
To start the application for a Refund Advance loan through TurboTax, one must first e-file their federal tax return with the software. Upon acceptance of the return by the IRS, the applicant can proceed to apply for the advance. They will find out if they are approved usually within a short time frame, sometimes as quick as four minutes.
- E-file your federal tax return using TurboTax.
- After the IRS accepts your return, apply for the Refund Advance in TurboTax.
- Wait for approval notification.
Required Documents and Information
Applicants must prepare a few key documents and pieces of information to apply for the tax refund advance.
- Tax Forms: Recent W-2s or 1099 forms.
- Personal ID: A government-issued ID to satisfy identity verification.
- Tax Information: Specific tax forms like 1040SS, 1040PR, or others as appropriate, along with any schedules such as 8862 or 8888.
- Expected Refund Amount: Estimate of anticipated tax refund.
- Direct Deposit Information: Bank account details for where the refund and loan should be deposited.
The loan amount is contingent on the size of the anticipated federal tax refund, with the possibility of receiving up to $4,000. It’s important to note that eligibility criteria, identity verification, and credit checks are part of the process, although there are no loan fees and applying does not affect one’s credit score. The funds from the loan are typically available via direct deposit once the IRS accepts the tax return.
Managing Your TurboTax Refund Advance
Once the IRS accepts your tax return, if eligible, your Refund Advance loan can be deposited swiftly. Direct deposit is the primary method, with funds typically available within four minutes. Should you not have an existing bank account, Intuit partners, like First Century Bank, N.A., and MVB Bank, offer a Credit Karma Money spend account where the loan amount can be deposited. With this account, you are issued a Credit Karma Visa® Debit Card which can be used like any other Visa card.
- Physical and Virtual Cards: Access funds using the physical debit card or a virtual debit card for online purchases.
- Maximum Balance and Transfer Limits: Be aware of any balance or transfer limits that may apply to your account.
- ATM Transactions: Withdraw cash at ATMs, noting any associated fees or limits.
Repayment of Loan
Repayment of the Refund Advance loan is automatic. When the IRS processes your tax refund, they will directly send it to the financial entity that provided the Refund Advance. This means TurboTax, First Century Bank, N.A., or MVB Bank will deduct the loan amount you received, plus any applicable fees, before forwarding the remaining balance to your account. This process spares you from the need to set reminders or worry about due dates for loan repayment.
- Loan Amount and Anticipated Refund: The amount of the loan depends on the size of your anticipated refund.
- Electronic Deposit: Ensure your correct checking account information is on file for a seamless deposit of your remaining tax refund.
Keep these details in mind when managing your TurboTax Refund Advance to utilize it effectively and ensure a stress-free repayment process.
Frequently Asked Questions
When considering a TurboTax Refund Advance, you likely have a lot of questions. This section dives into the most common inquiries to help clarify the process.
How do you qualify for a TurboTax Refund Advance?
To qualify for a TurboTax Refund Advance, one must file their federal tax return through TurboTax and meet certain eligibility criteria such as having a sufficient tax refund amount from the IRS.
What are the deadlines for applying for a Refund Advance with TurboTax in 2024?
The specific deadlines for applying for a Refund Advance with TurboTax in 2024 are not provided here, but typically, the IRS begins accepting tax returns in late January. It is best to check directly with TurboTax for the most current deadlines.
Is it possible to receive a Tax Refund Advance online?
Yes, after e-filing your tax return with TurboTax, one can apply for a Refund Advance online and may receive the advance virtually instantly upon IRS acceptance of the return.
What is the release schedule for TurboTax Refund Advance in 2024?
The release schedule aligns closely with the IRS’s acceptance of e-filed tax returns, which generally starts in late January. Approved funds through TurboTax Refund Advance are usually available within minutes after acceptance.
At what point in the tax season can one obtain a Refund Advance through TurboTax?
One can apply for a TurboTax Refund Advance as soon as the IRS starts accepting e-filed returns, typically in late January, and as long as Refund Advance applications are being offered for the season.
Are there alternatives to TurboTax for securing a Refund Advance?
While TurboTax offers a Refund Advance program, other tax preparation services and lenders may also offer similar tax refund advance loans. It is important to compare options to find the best fit for your needs.
Advanced Technologies Academy & UCLA Electrical Engineering grad. I bring multiple decades of knowledge in computer hardware, mobile devices, electronics, repair, and design to my writing, including expertise in hardware-level analysis, circuits, and systems. I’ve always been passionate about tech – especially on the PC components side of things.
When I’m not busy being a geek I’m a dad and watch as much NBA as I can.
The best way to reach me is to send me an email at: email@example.com or on LinkedIn