Many taxpayers see Jackson Hewitt’s “Money Today” advance and believe it is simply an early payout of their refund. It isn’t. It is a short-term loan—structured to look like an instant tax refund—often carrying steep indirect costs that few filers realize.

Let’s break down how these refund advance loans truly work, what they cost, and how to protect yourself from losing part of your refund.

What the “Money Today” Offer Really Is

Jackson Hewitt advertises:

• Get up to $3,500 today
• No fees
• No interest
• Guaranteed fast approval

But here is the truth beneath the marketing:

You are not receiving YOUR refund.
You are receiving a LOAN against your future refund.

Jackson Hewitt is NOT giving you that money—
A partner bank is issuing a short-term loan using your IRS refund as collateral.

When the IRS later issues the refund, it goes to the bank FIRST to repay the loan.

This is not an advance from IRS funds. It’s a bank loan disguised as an early refund release.

The Real APR Behind the “No-Fee” Claim

Jackson Hewitt advertises “no fees” and “no interest”—but that doesn’t mean the loan is free.

You end up paying through:

• Required tax preparation fees
• Refund Transfer charges
• Bank processing fees
• Additional service fees

And most importantly:

Your refund is routed through a third-party bank rather than directly to you.

Let’s look at actual cost scenarios.

Real Cost Example

Loan received from Jackson Hewitt’s bank: $3,000
Time to IRS refund: about 21 days
Tax prep fee: $120
Refund Transfer fee: $40
Other administrative fees: $10

Total paid: $170

$170 paid over 21 days for a $3,000 loan…
That is equivalent to an APR of roughly 98 percent.

In other words:
You basically paid credit-card-level interest for a three-week loan.

The Psychological Trap

The system is designed to make the fees feel invisible.

Here’s how:

1. You never see the loan repayment—it happens when IRS sends refund
2. You never manually repay the loan—the refund is intercepted
3. You never feel the deduction—it arrives silently in processing
4. You walk away feeling like “nothing was charged upfront”

This is precisely how financial products become highly profitable for tax prep companies.

The Fine Print You Don’t See

The promotion hides behind carefully-chosen wording:

• “No upfront cost”
• “No out-of-pocket fee”
• “No interest loan”

But you end up paying through:

• Mandatory bank routing
• Refund delays
• Reduced payout
• Locked-in filing fees

Plus, you CANNOT shop around once you take the loan.
Your refund must be processed through their channel.

Who Should Absolutely Avoid Refund Advance Loans

Avoid these loans if you:

• Can wait 21 days for your refund
• Already qualify for Direct Deposit
• Have access to a bank account
• Don’t need emergency cash
• Want maximum refund payout
• Are claiming EITC or ACTC (PATH Act delays are mandatory anyway)

If you claim Earned Income Tax Credit or Child Tax Credit, your refund legally cannot be issued before February 15—no matter who files it or how much you pay.

The “Money Today” loan simply bridges the delay—at your expense.

Better Alternatives Than Refund Advance Loans

If you need cash fast:

• Ask your bank about short-term credit
• Use a low-interest credit card
• Contact local credit unions
• Use paycheck advance apps with regulated fees
• Negotiate payment extensions where needed
• Delay filing until you have full paperwork
• Budget for a 21-day refund window

These often cost FAR less than the hidden APR of a refund loan.

Final Warning: This Is Not Your Refund

When you receive “Money Today” from Jackson Hewitt, remember:

• The cash you receive is not IRS money
• The bank owns your refund until the loan is repaid
• Every associated service fee diminishes your final payout

Convenience is expensive.
Financial urgency + tax marketing = costly decisions.

Jackson Hewitt’s “Money Today” feels like a shortcut, but it’s actually a detour.

You pay more
You wait longer
You receive less refund
Your refund is routed through another bank
And the real cost is disguised behind convenience-based marketing

If you can wait the standard IRS 21 days—do it.
Your refund will be larger, faster, and fully yours.