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.
