If you’re expecting a refund from the IRS this tax filing season, you may be eligible to receive a portion of it upfront with TurboTax. TurboTax is a tax preparation company that processes tax returns for individuals, businesses, and even the self-employed. An incentive to filing your tax return with TurboTax is the tax refund advance program it extends to certain individuals.
What is TurboTax’s tax refund advance program and who qualifies for it?
TurboTax’s tax refund advance program, explained
When you file your taxes and are entitled to a refund from the IRS, you generally have to wait 21 days or less before it will be issued. The IRS says it typically issues refunds in under 21 days after your electronically filed return has been accepted and approved (28-42 days for paper checks). For most people, having to wait 2-3 weeks is a burden they’d rather not endure.
While some are left with no choice but to wait, others are sometimes able to take advantage of TurboTax’s tax refund advance program. Here’s how it works. If you want to even be considered for TurboTax’s refund advance program, you’ll need to file your taxes with the company.
After you complete your return, you’ll want to choose “Refund Advance” as your refund option before clicking “File.” If your refund is $500 or more, you meet eligibility criteria, and agree to the Refund Advance terms and conditions, you generally pre-qualify to participate in the program. After you select Refund Advance, you’ll be prompted to open a checking account with Credit Karma Money.
During this process, you’ll either be approved for the refund advance or denied. If you are approved, a checking account will be opened and TurboTax will use it to deposit your refund advance into. You’ll then be given access to a virtual card and should receive a Credit Karma Visa® Debit Card within 7-14 days after your account was opened.
How much of a refund advance can I get from TurboTax?
Your refund advance from TurboTax depends on the total amount you’re expected to receive from the IRS. Below is the chart TurboTax uses to estimate how much of an advance you can receive.
|Expected Federal Refund Amount||Maximum Advance Refund Amount|
|$8,000 and above||$4,000|
TurboTax says that it won’t charge interest or loan fees on the refund advances it issues. Once the IRS approves your return and disburses your full refund, the amount minus what was provided to you as an advance, will then be deposited into your Credit Karma Money checking account.
How long does it take TurboTax to issue a refund advance?
If you are approved for a tax refund advance through TurboTax, your funds may be deposited into your Credit Karma Money account within 1-2 hours after the IRS accepts your return. The IRS began accepting tax returns on Jan. 24, 2022, and generally accepts them within 1-3 days after they’ve been submitted.
It is worth noting that when the IRS accepts your tax return, this doesn’t indicate it’s been approved. An acceptance from the IRS is equivalent to the IRS saying you’ve passed the initial inspection.
Some reasons why some tax files don’t get approved for TurboTax’s tax refund advance program
TurboTax highlights several reasons why a tax filer might not be approved for their tax refund advance program. Some reasons include:
- Your refund was under $500.
- You failed to agree to all of the Refund Advance terms and conditions.
- You owe money to the government or your State.
- You did not meet the lender’s criteria. This may happen if you are behind on child support or have tax liens issued in your name.