Life changes
How a Tax Refund Advance Works
A refund advance lets you receive part of your expected federal refund soon after filing, instead of waiting for the IRS. It is a loan from a bank, repaid from your refund, and it is entirely optional.
Reviewed by LaToya Clark-Thompson, FounderLast updated
What a refund advance is
A refund advance is a loan, not your refund. It is offered by a participating financial institution through the tax preparer, during a set window at the start of each filing season. You apply when your return is prepared, the bank decides whether to approve you, and if it does, the advance is paid to you, usually on a prepaid card or by direct deposit. When the IRS later releases your refund, the bank receives it first, keeps what is owed on the advance, and sends you the rest.
Elite Pro-Tax is not the lender and does not make approval decisions. We prepare and e-file your return and submit the application. The current lenders, amounts and terms are on our refund advance page, because they change every season.
How it works, step by step
- Bring your W-2s, 1099s and ID, and we prepare your federal return
- If you want an advance, you apply as part of e-filing. Applying is a separate choice from filing, and you can file without it
- The bank reviews identity, the expected refund and its own criteria, then approves or declines
- If approved, the advance is funded to you. If not, your return is still filed and your refund arrives as normal
- When the IRS releases your refund, it goes to the bank, which repays the advance from it and passes on the remainder
What to read before you agree
Every advance comes with the lender’s own disclosure, and that disclosure is the document that binds. Before you sign, check:
- Whether this advance carries interest, and how it is figured
- Any separate fees, such as a refund transfer fee or a fee for having preparation charges taken from your refund. These are different from the loan’s rate
- How you receive the money, and any card or check fees
- What happens if your refund comes in lower than expected, is delayed, or is offset for a debt
Your actual refund depends on the IRS. If part of it is applied to a past-due debt, or the IRS adjusts the return, less arrives at the bank than expected. Read the disclosure for what that means for you.
When an advance makes sense
It is most useful when you expect a sizable refund and the money has a real job early in the year, such as a car repair or catching up on rent. It is especially relevant if you claim the Earned Income Tax Credit or Additional Child Tax Credit, because the law holds those refunds until mid-February. See where’s my refund.
It makes less sense if your refund is small or uncertain, or if waiting a little would cost you nothing. The fastest way to get the refund itself is e-filing with direct deposit, which costs nothing extra. Not sure what your refund will be? The tax refund calculator gives a ballpark.
Getting ready
The advance is only available during the season window shown on the refund advance page. Outside it, you can join the list there and we will contact you when applications open. Collect your W-2s, 1099s, last year’s return, photo ID and Social Security cards for everyone on the return, and book your tax preparation appointment in the Easley office or virtually through the secure client portal.
Frequently asked questions
Is a refund advance the same as my tax refund?
No. A refund advance is a loan from a participating bank, based on the refund you are expected to receive. Your actual refund comes from the IRS later and goes to that bank first, which repays the advance from it and sends you anything left over. The advance and the refund arrive at different times, from different organizations, on different terms.
What happens if I am not approved for a refund advance?
Your return is still filed, and your refund is paid to you as it normally would be once the IRS releases it. Approval is decided by the lending bank, not by Elite Pro-Tax, based on identity verification, your expected refund and the bank’s own criteria. Being declined does not affect your tax return or your refund.
Can I get a refund advance if I claim the Earned Income Tax Credit?
Claiming the EITC does not by itself rule you out, and an advance is often what people use to bridge the PATH Act hold, which keeps EITC and ACTC refunds from being issued before mid-February. Approval still depends on the lender’s criteria. The current lenders and their terms are on our refund advance page.
Can I apply for a refund advance in the fall?
Not for the actual loan. Refund advances are only offered during a window early in each filing season, set by the lending banks. Outside that window you can join the list on our refund advance page, and we will let you know when applications open so you can have your documents ready.
Not the question you had? The full tax FAQ covers more ground, and our client reviews say what the work is actually like.
Related pages
Waiting on your refund
How to track a federal or South Carolina refund, what the stages mean, and why some refunds are held.
Learn moreYour refund is smaller than last year
Withholding, aged-out credits, side income and status changes: the usual reasons a refund drops, and how to tell which one is yours.
Learn moreYour refund was taken for a debt
Refund offsets for back taxes, child support, student loans and state debts, and how a spouse can get their share back.
Learn moreSingle parent, head of household
The head of household tests, who counts as a qualifying person and the mistakes to avoid.
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