Getting your tax refund can be exciting, and sometimes, you might need those funds a bit sooner. If you’re anticipating a federal tax refund of $500 or more, Credit Karma Money™ offers a solution that could get you access to your money faster with their Refund Advance program. This program, facilitated through partnerships with First Century Bank, N.A. or WebBank, and requiring a Credit Karma Money™ Spend account, allows eligible taxpayers to borrow against their expected refund. Let’s delve into the details of how Credit Karma Money™ and Refund Advance can work for you.
Understanding Credit Karma Money™ Refund Advance
The Refund Advance isn’t your actual tax refund; it’s a loan based on the refund you expect to receive from the IRS. Offered with a 0% APR and $0 loan fees, it can be an appealing option if you need quicker access to funds. However, it’s important to understand that eligibility for this program through Credit Karma Money™ is subject to identity verification, security checks, and certain underwriting criteria. This offer is also available for a limited time, expiring on February 28, 2025, or when funds are exhausted.
It’s crucial to note that while the Refund Advance itself has no loan fees, you might encounter separate fees if you decide to use your federal refund to pay for TurboTax services. Paying for TurboTax with your refund is not a prerequisite for obtaining the Refund Advance. Also, be aware that additional fees could apply to other optional products and services.
Are You Eligible for a Credit Karma Money™ Refund Advance?
Eligibility for the Refund Advance program through Credit Karma Money™ comes with specific conditions. You will not be eligible if:
- Your physical address is missing from your federal tax return.
- Your physical address is outside the United States, in a US territory, is a PO box, or a prison address.
- You reside in Illinois (IL), Connecticut (CT), or North Carolina (NC).
- You are under 18 years of age.
- You are filing a tax return on behalf of a deceased person.
- You are filing specific IRS forms such as 1310, 4852, 4684, 4868, 1040SS, 1040PR, 1040X, 8888, or 8862.
- Your expected refund is less than $500.
- You did not receive Forms W-2 or 1099-R, or you are not reporting income on Schedule C.
Furthermore, to be eligible, you must:
- E-file your federal tax return using TurboTax.
- Have or open a Credit Karma Money™ Spend (checking) account with MVB Bank, Inc., Member FDIC. Keep in mind that account openings and usage are subject to eligibility and certain limits. Review the Credit Karma Money Spend Account Terms and Disclosures for complete details.
Loan Amounts and How You Receive Your Advance with Credit Karma Money™
Not everyone will qualify for a loan or the maximum loan amount. If your application is approved, the Refund Advance loan amounts are set at $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 be determined by your anticipated federal tax refund, up to a maximum of 50% of that refund.
You will only receive final confirmation of your loan approval after the IRS accepts your e-filed federal tax return. Upon approval, the loan is typically deposited into your Credit Karma Money™ Spend (checking) account within approximately 15 minutes after IRS acceptance. You can then access these funds online immediately using a virtual card. Your physical Credit Karma Visa® Debit Card*, issued by MVB Bank, Inc., Member FDIC, should arrive within 7 to 14 days. *Visa terms and conditions apply, and other fees may be applicable. For detailed information on potential fees associated with your Credit Karma Money™ Spend account, you can visit Credit Karma’s support page.
Repaying Your Refund Advance and What Happens Next
Repayment of your Refund Advance is straightforward. The loan amount is automatically deducted from your federal tax refund when it is processed by the IRS. This will reduce the final refund amount that is directly paid to you and deposited into your Credit Karma Money™ Spend (checking) account.
Typically, the IRS disburses tax refunds within 21 days of e-file acceptance. Whether you are approved for the loan or not, your tax refund, minus any applicable TurboTax fees if you chose to pay that way, will be deposited into your Credit Karma Money™ Spend account.
In the event that your tax refund is less than the amount you owe on the loan, you are generally not required to repay the remaining balance. However, you might be contacted as a reminder of the outstanding balance and provided with options to repay if you choose to do so. It’s important to be aware that if your loan is not fully repaid, you will not be eligible for a Refund Advance in the future.
Credit Karma Money™’s Refund Advance can be a useful tool to access your tax refund funds sooner, offering speed and convenience for eligible users who utilize TurboTax and a Credit Karma Money™ Spend account.
