Understanding Your Taxpayer Advance Loan Options

Understanding Your Taxpayer Advance Loan Options

Loans Issued by Pathward, N.A., Member FDIC

Overview

If you qualify, you may have the option to receive a Taxpayer Advance Loan issued by Pathward, N.A., Member FDIC.

This loan allows you to receive a portion of your expected tax refund in advance. The advance is repaid automatically from your tax refund once it is processed.

Pathward offers two types of advance options:

Option 1: No-Cost Advance (0% APR)

How It Works

  • You receive a small advance (commonly $250, $500, or $1,000).

  • The Annual Percentage Rate (APR) is 0%.

  • You repay only the amount you borrowed.

  • The repayment is automatically deducted from your tax refund.

What This Means for You

If you borrow $1,000, you repay $1,000 — no interest and no added loan charges.

Best For

Clients who:

  • Need a smaller amount of money quickly

  • Prefer to avoid paying interest

Option 2: Larger Advance (Interest Applies)

How It Works

  • You may qualify for a larger advance based on a percentage of your expected refund.

  • Interest applies to this option.

  • The total repayment amount will be higher than the amount borrowed.

  • Repayment is automatically deducted from your tax refund.

What This Means for You

If you borrow a larger amount, you will repay the principal plus interest as disclosed in your loan agreement.

Best For

Clients who:

  • Need more than the no-cost advance limit

  • Understand and accept the additional cost for accessing more funds upfront

Key Differences

Feature No-Cost Advance Larger Advance
APR 0% Interest applies
Loan Amount Smaller Larger
Total Repayment Same as borrowed More than borrowed
Repayment Method From tax refund From tax refund

Important Disclosures

  • All loans are issued by Pathward, N.A., Member FDIC.

  • Loans are subject to approval. Not all applicants will qualify.

  • Approval, loan amount, and APR are determined by Pathward underwriting criteria.

  • The loan is an advance against your expected federal tax refund.

  • If your refund is reduced, delayed, offset, or denied by the IRS, you remain responsible for repayment according to your loan agreement.

  • The full loan agreement will disclose:

    • APR (if applicable)

    • Finance charge

    • Total repayment amount

    • Payment method and timing

  • Funds availability may vary.

  • This loan is optional. You are not required to take an advance to file your tax return.

  • Estimated refund amounts are not guaranteed by the IRS.

Questions?

Please contact our office if you would like assistance reviewing your advance options before making a selection.

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