Tax Refund loan products are making a comeback. A variety of vendors offer different perks related to your tax refund. Many of the major tax preparation services are offering new products for 2023 tax refund loans. Automobile dealerships and furniture stores are also common places that offer you benefits if you file your taxes through their services. The basic idea is they offer to put your refund towards the purchase of a product. Quite simply, a lender or tax preparation company will walk you through filing your taxes and offers to pay you on the spot for the refund that you are supposed to receive. Many taxpayers may be looking to these types of tax refund advance products due to the delay of refunds with Earned Income Tax Credits or Additional Child Tax Credits until February 15th due to the PATH ACT.

The New Tax Refund Loan

Tax Refund Anticipation Loans (RAL) were popular but became essentially non-existent in 2012 when regulatory crackdowns forced the products pretty much out of the market because they came at a high cost to the consumer. But the resurgence of a similar product called a tax refund loan is now on the market. H&R Block, Liberty Tax, TurboTax, and Jackson Hewitt have offered tax refund loan products in 2023 in amounts of up to $6250. If approved, some offer money the same day you apply. The amount of the advance will be deducted from your tax refund and reduce the amount that is paid directly to the taxpayer.

Where to get tax refund loans

Jackson Hewitt

Jackson Hewitt offers two refund advances. The Early Refund Advance Loan, which has a 34.22% APR, is available in December 2022, while the No Fee Refund Advance Loan, with a 0% APR, is available starting in January 2023. Republic Bank & Trust Company issues both.

The minimum federal tax refund amount	$600.
Early Refund Advance Loan amounts	$300, $500, or $1,000.
No Fee Refund Advance Loan amounts	$500, $750, $1,000, $1,500, $2,500, or $3,500.
Time to funding	Within 24 hours if you have the money loaded onto a prepaid card. Funding can take one to five business days if you want the loan deposited into a bank account.
Requirements	For a refund advance with Jackson Hewitt, you must have your taxes prepared at a Jackson Hewitt office. The Early Refund Advance requires a recent pay stub. The No Fee Refund Advance Loan requires a W-2 and other tax documents.
Tax preparation fee	In-person filing starts at $59.
Deadline	The Early Refund Advance is available from Dec. 12, 2022, through Jan. 15, 2023. The No Fee Refund Advance Loan is available from Jan. 2, 2023, through Feb. 19, 2023, at certain Jackson Hewitt locations.

Express Refund Advance from Jackson Hewitt

You can also prequalify now for this refund advance loan from Jackson Hewitt. The Express Refund Advance is advertised as a no-fee tax refund loan. No late fees. No document fees, no origination fees, and no interest charges. The Express Refund Advance loan amounts can be $500, $750, $1,000, $1,500, $2,500, and $3,500 for qualifying clients. A portion of the loan ($300-$1,000) can be accessed by qualifying clients as early as December 18 with a pay stub or other income verification in anticipation of the holidays. This refund loan is disbursed to an American Express Serve card.

H&R Block

H&R Block’s Refund Advance loan is available starting in January 2023 at select office locations. Pathward issues H&R Block’s Refund Advance loan.

The minimum federal tax refund amount	$500.
Loan amounts	$250, $500, $750, $1,250, or $3,500.
Time to funding	Same-day funding in most cases. The loan will be available through an H&R Block prepaid card that you received during your appointment.
Requirements	You must have your taxes prepared at a participating H&R Block office, receive a sufficient refund amount and provide proof of identification. You must also meet certain credit and other underwriting requirements.
Tax preparation fee	Fees start at $80 and there may be an additional state filing fee.
Deadline	H&R Block offers the refund advance at participating locations from Jan. 3, 2023, to Feb. 28, 2023.

Tax Refund Loan from H&R Block

You can prequalify now for this Refund Advance loan without any impact on your credit score. The refund loan from H&R Block starts on January 5th and is advertised to loan up to $3,500 with 0% interest. When you file your taxes with H&R Block you can apply for the loan and get it as early as the day you file. If approved, this loan is loaded to an Emerald Prepaid MasterCard.

Emerald Advance from H&R Block

The refund loan applications at H&R Block opened in November. You can make an appointment online now without a W2 to apply. A paycheck stub, proof of ID, and address are needed to apply. The loan is also disbursed to an Emerald Prepaid MasterCard. You can use the credit line year-round if you pay your loan off by February 15th each year. There are annual fees and a pretty hefty interest rate. Other fees apply, so make sure you read the fine print before signing for the loan. This loan from H&R Block is advertised to give you up to $1,250.

Intuit TurboTax

Intuit TurboTax’s refund advance loan is funded by First Century Bank.  Unlike other tax preparers, TurboTax allows customers to apply online. If approved, borrowers must open a Credit Karma Money checking account to access the loan.

The minimum federal tax refund amount	$500.
Loan amounts	$250, $500, $750, $1,000, $1,500, $2,000, $2,500, $3,000, $3,500, or $4,000.
Time to funding	Funds are deposited into a Credit Karma Money checking account within 15 minutes after your return is accepted. A debit card can take one to two weeks to arrive.
Requirements	There are several eligibility requirements for the TurboTax refund advance. Here are some of them: You must e-file your federal tax return with TurboTax.You can’t be a resident of Connecticut, Illinois, or North Carolina.
Tax preparation fee	TurboTax online products vary from free to $119+.
Deadline	The refund advance loan is available until Feb. 15, 2023.

Liberty Tax Service

Liberty Tax Service offers tax refund advances. The Early Refund Advance Loan, which has a 35.99% APR, is available on January 3, 2023. Meta Bank or Republic Bank & Trust Company issued the refund advance.

The minimum federal tax refund amount	$500.
Loan amounts	$500, $800, $1,300, $2,500, $3,000, $4,750, $6,250.
Time to funding	Funds will be loaded on a Netspend® Liberty Tax® Prepaid Mastercard after your return is accepted. A debit card can take one to two weeks to arrive.
Requirements	All you need is a government-issued ID, all income-related documentation for this year (including a document dated from the last 30 days), and any other updated tax information.
Tax preparation fee	Liberty Tax Service online products vary from free to $125+.
Deadline	Liberty Tax Service offers the refund advance at participating locations from Jan. 3, 2023, to Feb. 28, 2023.

Easy Advance Loan from Liberty Tax

This loan becomes available on January 3rd and is advertised with no fees or interest. An Easy Advance (EA) is a $500-$6,250 loan secured by your tax refund and is offered by Republic Bank & Trust Company, member FDIC, to eligible taxpayers. These refund advance loans are disbursed as a check printed in the tax office, loaded onto a NetSpend® Liberty Tax® Prepaid MasterCard® or directly deposited into a bank account. Valid at participating Liberty Tax Service locations.

TPG Tax Service

Santa Barbara Tax Products Group offers The Fast Cash Advance Loan, which has a 35.99% APR and is available on January 2, 2023. First Century Bank issues the refund advance.

The minimum federal tax refund amount	$500.
Loan amounts	$500 to $7,000.
Time to funding	Customers are notified as soon as they are approved. The Fast Cash Advance is issued by check, direct deposit, or GO2bank Visa Debit Card
Requirements	All you need is a government-issued ID, all income-related documentation for this year (including a document dated from the last 30 days), and any other updated tax information.
Tax preparation fee	In-person filing starts around $60 and there may be an additional state filing fee.
Deadline	TPG offers the refund advance at participating locations from Jan. 2, 2023, to Mar. 17, 2023.

Santa Barbara Tax Products Group – Fast Cash Advance

Tax preparers can offer Fast Cash Advance loans through First Century Bank in amounts between $500-$7,000. If approved, your money will be available by check, direct deposit, or GO2bank Visa debit card.

Why Tax Refund Loans Aren’t Always a Great Option

They may sound attractive. And, they can be an option if you are in such need that you are contemplating a loan. However, it is not a great choice unless you are in dire need. One problem is the lack of regulation. There aren’t many hard and fast rules surrounding the practice that are well-regulated from the top. Each state has its own regulations that can vary drastically. Consumer watchdog groups view some of these loans as predatory because they typically target low-income, low-resource consumers who often look forward to that lump sum. Refund loans also provide an incentive for dishonesty. A tax refund loan is given based on the amount of the consumer’s tax refund. Thus, it creates a motive for the lender to fudge details and tries to stretch your refund for every dollar. That can easily toe the line of fraud and may put you on the radar for an audit if the lender acts unethically.

A Tax Refund Loan Could Backfire

You may find yourself in debt to the lender if there are garnishments against your tax refund. Unpaid tickets, child support arrears, student loans, or certain other types of debt can be offset and reduce the amount of tax refund you are expecting. The money that they lend the consumer is given with the expectation of receiving a certain amount from the Internal Revenue Service. Thus, you may end up needing to pay part of that loan back with an extremely high-interest rate attached. In some states, it can be anywhere from 30-50% APR in addition to fees.

So, should you get a refund loan?

The short answer is probably not. It’s just not quality, meaningful service where the consumer has appropriate protections to safeguard their interests. The costs and potential problems that may arise because of a tax refund loan are simply not worth the risk. If you are in such trouble that you are contemplating taking out a loan, be certain to diligently research the company you are going to borrow from first so you don’t end up in debt to them.