Are After School Programs Dependent Care? While that’s a question many families consider for childcare solutions, let’s shift focus to another important financial tool for families: understanding refund advance loans. If you’re anticipating a tax refund and considering a Refund Advance loan, it’s crucial to understand the specifics. This guide breaks down the details and disclosures of the Refund Advance program, ensuring you have all the information you need.
What is a Refund Advance Loan?
A Refund Advance loan is not your actual tax refund. Instead, it’s a loan based on the expected amount of your federal tax refund. These loans, often offered with 0% APR and $0 loan fees, are provided by financial institutions like First Century Bank, N.A. or WebBank, which are not affiliated with MVB Bank, Inc., Member FDIC. It’s important to remember that this is a loan product, and eligibility is subject to various verifications and criteria.
This offer for a Refund Advance is not indefinite. It is typically available until February 28, 2025, or until the allocated funds are exhausted, whichever comes first. Keep in mind that the terms, eligibility, and availability of this offer can change without prior notice. Facilitation of these loans differs depending on the lender; First Century Bank, N.A. loans are facilitated by Intuit TT Offerings Inc., and WebBank loans are facilitated by Intuit Financing Inc., both subsidiaries of Intuit Inc.
While the Refund Advance loan itself comes with no loan fees, be aware that separate fees might apply if you decide to pay for TurboTax using your federal refund. Choosing to pay for TurboTax with your refund is not mandatory to obtain a Refund Advance loan. Furthermore, additional fees could be applicable for other optional products and services you may choose.
Eligibility Requirements for a Refund Advance Loan
Not everyone will qualify for a Refund Advance loan. Several ineligibility factors exist. You will not be eligible if:
- Your physical address is missing from your federal tax return.
- Your physical address is outside the United States or a US territory, is a PO box, or a prison address.
- Your physical address is in Illinois (IL), Connecticut (CT), or North Carolina (NC).
- You are under 18 years of age.
- The tax return being filed is for a deceased person.
- You are filing specific IRS forms such as 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 Schedule C.
In addition to these exclusions, you must also meet the following requirements:
- You must e-file your federal tax return using TurboTax.
- You must currently possess or open a Credit Karma Money™ Spend (checking) account with MVB Bank, Inc., Member FDIC. Note that account openings are subject to eligibility, and there are maximum balance and transfer limits. For comprehensive details, refer to the Credit Karma Money Spend Account Terms and Disclosures.
Loan Amounts and Approval Process
Qualification for a loan, or for the maximum loan amount, is not guaranteed for all consumers. If your application is approved, the loan amount will be one of the following predetermined amounts: $250, $500, $750, $1,000, $1,500, $2,000, $2,500, $3,000, $3,500, or $4,000. The specific loan amount you are offered will depend on your anticipated federal refund, and it will not exceed 50% of that refund amount.
Crucially, the final decision regarding your loan approval will only be made after the IRS has accepted your e-filed federal tax return. Loan repayment is structured to be directly deducted from your federal tax refund, which will subsequently reduce the refund amount you receive directly.
Receiving Your Refund Advance and Tax Refund
Upon approval, your Refund Advance will typically be deposited into your Credit Karma Money™ Spend (checking) account within approximately 15 minutes after the IRS accepts your e-filed tax return. You can access these funds online immediately using a virtual card. Your physical Credit Karma Visa® Debit Card* should arrive within 7 to 14 days. *This card is issued by MVB Bank, Inc., Member FDIC, under a license from Visa U.S.A. Inc., and is subject to Visa terms and conditions. Other fees may apply; detailed fee information is available at the provided Credit Karma support link.
After deducting the loan amount and any applicable agreed-upon fees, your remaining tax refund will also be placed into your Credit Karma Money™ Spend (checking) account. The IRS generally disburses tax refund funds within 21 days of e-file acceptance. Even if your loan application is not approved after IRS acceptance, your tax refund, minus any agreed-upon fees, will still be deposited into your Credit Karma Money™ Spend (checking) account.
What Happens if Your Refund is Less Than Expected?
In the event that your tax refund is insufficient to fully repay your loan balance, you will not be obligated to repay the remaining balance. However, you might receive communications reminding you of the outstanding balance and offering payment instructions should you choose to repay it. It’s important to note that if your loan is not fully repaid, you will become ineligible for future Refund Advance loans.
This detailed guide provides a comprehensive overview of the Refund Advance loan program, helping you make informed decisions about your financial options.
