TurboTax is a popular tax preparation software that many people use to file their taxes each year. One feature they offer is the Refund Advance loan. But when considering using TurboTax, a crucial question arises: how much does TurboTax cost, particularly when factoring in options like the Refund Advance? Let’s break down the details.
Refund Advance Loan Details
If you anticipate receiving a federal refund of $500 or more, you might be eligible for a Refund Advance loan. These loans are facilitated by First Century Bank, N.A. or WebBank, neither of which is affiliated with MVB Bank, Inc., Member FDIC.
The Refund Advance is a loan based on your expected refund, not the refund itself. It comes with a 0% APR and $0 loan fees. However, this availability is subject to identity verification, security requirements, eligibility criteria, and underwriting standards. Keep in mind that this offer expires on February 28, 2025, or when the available funds are exhausted, whichever comes first, and is subject to change without notice. Intuit TT Offerings Inc. (NMLS # 1889291) and Intuit Financing Inc. (NMLS # 1136148), subsidiaries of Intuit Inc., facilitate these loans.
Although the Refund Advance loan has no associated loan fees, fees may apply if you opt to pay for TurboTax with your federal refund. Paying with your refund is not required to get the Refund Advance. Also, additional fees could apply for other products and services you select.
Eligibility Requirements for the Refund Advance
You won’t be eligible for the Refund Advance loan under the following circumstances:
- Your physical address is not included on your federal tax return.
- Your physical address is outside of the United States or a US territory, is a PO box, or is a prison address.
- Your physical address is in IL, CT, or NC.
- You are less than 18 years old.
- The tax return filed is on behalf of a deceased person.
- You are filing certain IRS Forms (1310, 4852, 4684, 4868, 1040SS, 1040PR, 1040X, 8888, or 8862).
- Your expected refund amount is less than $500.
- You did not receive Forms W-2 or 1099-R, or you are not reporting income on Sched C.
Furthermore, you must e-file your federal tax return with TurboTax and have or open a Credit Karma Money™ Spend (checking) account with MVB Bank, Inc., Member FDIC. Note that maximum balance and transfer limits apply, and opening a Credit Karma Money™ Spend account is subject to eligibility.
Loan Amounts and Repayment
Not all consumers will qualify for a loan or for the maximum loan amount. If approved, the loan will be for one of ten amounts: $250, $500, $750, $1,000, $1,500, $2,000, $2,500, $3,000, $3,500, or $4,000. Your loan amount will be based on your anticipated federal refund, up to a maximum of 50% of that refund amount. The final decision on your loan approval comes after the IRS accepts your e-filed federal tax return. Loan repayment is deducted from your federal tax refund, reducing the subsequent refund amount paid directly to you.
Receiving Your Refund Advance
If approved, your Refund Advance will be deposited into your Credit Karma Money™ Spend (checking) account, typically within 15 minutes after the IRS accepts your e-filed federal tax return. You can access your funds online through a virtual card. Your physical Credit Karma Visa® Debit Card* should arrive in 7 – 14 days. (*Card issued by MVB Bank, Inc., Member FDIC pursuant to a license from Visa U.S.A. Inc.; Visa terms and conditions apply. Other fees may apply.)
Your tax refund, after deducting the loan amount and any applicable fees, will be placed in your Credit Karma Money™ Spend (checking) account, typically within 21 days of e-file acceptance. If your loan application is denied after the IRS accepts your return, your tax refund minus any agreed-upon fees will still be placed in your Credit Karma Money™ Spend (checking) account.
What Happens If Your Refund Is Insufficient?
If your tax refund isn’t enough to cover your loan, you won’t be required to repay any remaining balance. However, you might be contacted to remind you of the remaining balance, with payment instructions provided if you choose to repay it. If your loan isn’t paid in full, you won’t be eligible for a Refund Advance loan in the future.
Conclusion
So, how much does TurboTax cost when considering the Refund Advance? The Refund Advance itself has no loan fees or APR. The cost comes into play with TurboTax’s filing fees (which vary based on your tax situation) and potential fees if you choose to pay for TurboTax with your refund or use other add-on services. It’s crucial to weigh these factors to determine the overall cost and benefits for your specific financial situation.
