Navigating tax season can be stressful, especially when you’re anticipating a refund but need funds sooner. Turbotax Online Tax service offers a solution to bridge this gap with its Refund Advance program. This program allows eligible taxpayers to access a portion of their expected federal tax refund as a loan, providing quicker access to funds than waiting for the IRS to process your return. This article breaks down the details of the TurboTax Refund Advance, helping you understand if it’s the right option for your financial needs during tax season.
Understanding the TurboTax Refund Advance Loan
The Refund Advance offered through TurboTax online tax isn’t your actual tax refund; it’s a loan based on the anticipated amount. These loans are facilitated by financial institutions like First Century Bank, N.A., or WebBank, which are not affiliated with MVB Bank, Inc. A key benefit is the 0% Annual Percentage Rate (APR) and $0 loan fees, making it a cost-effective way to access funds early if you qualify. However, eligibility is subject to identity verification, security protocols, and specific underwriting criteria. It’s also important to note that this offer has an expiration date, typically concluding in late February or when funds are exhausted. Remember, choosing to pay your TurboTax online tax preparation fees with your federal refund is separate from the Refund Advance and may incur additional fees.
Are You Eligible for a TurboTax Refund Advance?
Eligibility for the TurboTax online tax Refund Advance loan comes with a specific set of requirements. You will not qualify if certain conditions apply to your tax situation or personal circumstances. Key disqualifiers include:
- Address Limitations: If your physical address is not on your federal tax return, is outside the US or a US territory, or is a PO box or prison address, you are ineligible. Residents of Illinois (IL), Connecticut (CT), or North Carolina (NC) are also currently excluded.
- Age and Tax Return Type: Applicants must be at least 18 years old. Returns filed on behalf of deceased persons are not eligible.
- Specific IRS Forms: Filing certain IRS forms such as 1310, 4852, 4684, 4868, 1040SS, 1040PR, 1040X, 8888, or 8862 will disqualify you.
- Refund and Income Requirements: Your expected federal refund must be $500 or more. You also need to have received Forms W-2 or 1099-R, or be reporting income on Schedule C to be considered.
Furthermore, to apply for the Refund Advance with TurboTax online tax, you must e-file your federal tax return through TurboTax and have or open a Credit Karma Money™ Spend (checking) account with MVB Bank, Inc. This account is crucial as the loan, if approved, will be deposited there. Keep in mind that opening this account is also subject to eligibility and account terms.
Loan Amounts and Repayment with TurboTax Refund Advance
Not everyone will qualify for a loan or the maximum loan amount. If approved for a TurboTax online tax Refund Advance, the loan amount will be in one of ten fixed increments, ranging from $250 to $4,000. The specific amount you are offered will depend on your anticipated federal tax refund, with the loan capped at 50% of that refund amount. The final loan approval comes after the IRS accepts your e-filed federal tax return.
Repayment is straightforward: the loan amount is automatically deducted from your federal tax refund, reducing the final refund amount you receive. The remaining refund balance, after deducting the loan and any applicable TurboTax online tax fees (if you chose to pay with your refund), will be deposited into your Credit Karma Money™ Spend account. Typically, tax refunds are disbursed by the IRS within 21 days of e-file acceptance. Even if you are not approved for the Refund Advance after IRS acceptance, your tax refund (minus any agreed-upon fees) will still be deposited into your Credit Karma Money™ Spend account.
In the event your tax refund is less than the loan amount, you are generally not required to repay the remaining balance. However, you might be contacted about the outstanding balance and given options to repay if you choose to. Failure to fully repay a Refund Advance loan may impact your eligibility for future Refund Advance loans through TurboTax online tax.
By understanding the details of the TurboTax online tax Refund Advance, you can make an informed decision about whether this program aligns with your needs for accessing your tax refund faster.
