Can I get a loan using my tax refund in 2024?

Tax season is not yet underway, but some filers are choosing to take advantage of a financial service that can give them access to their tax refunds ahead of time.

Known as a tax refund loan, many tax preparation firms offer an advance on IRS refunds for their customers. Many of the biggest names in the industry, such as Jackson Hewitt, H&R Block and TurboTax, offer the loans with 0% interest, provided you use them to file your income tax return.

The exact terms vary between different providers but they are typically available between December and February. Sometimes known as ‘refund advances’, the service essentially lends you the value of your refund before the IRS has issued the payment, and they are then repaid once the actual refund arrives.

The upper limit for the service can be as much as $4,000 and may be dispersed within 24 hours. But bear in mind that while the loan itself is often 0% interest, these companies do charge for the tax preparation service.

Who is eligible for a tax refund loan?

The firms offering tax refund loans all require you to use their tax preparation services to claim an advanced refund. In some instances, the loans are not available to filers in certain states so check the specific requirements with your provider.

There is also a minimum tax refund amount to be eligible for the service, typically around $500.

Many lower income filers will be eligible to use the IRS Free File tool, an online service that provides tax preparation help for free. This program is designed to make the whole process easier and should ensure that you receive all the tax benefits that you are entitled to. If you use this tool you will not be able to claim a tax refund loan through any of the private tax preparation services.