Oh no! We may not fully support the browser or device software you are using !

To experience our site in the best way possible, please update your browser or device software, or move over to another browser.

Is a refund advance loan similar to a payday loan?

Both are advances, but Jackson Hewitt Tax Refund Advance loans cost less than payday loans. That can mean that a tax refund advance is a better option.

Payday loans and payday advances are short-term loans based on your paycheck that can help you cover expenses until you get paid. Repayment is typically due within 14 days and comes out of your paycheck. Payday loans are often associated with higher fees and interest than tax refund advance loans.

Tax Refund Advance loans, on the other hand, are based on your tax refund and are paid back automatically when the IRS sends your tax refund. It’s free to apply for a Tax Refund Advance loan, and it won’t impact your credit score. There are finance charges you need to be aware of, but those charges are typically lower than those associated with payday loans.

Apply for an Early Tax Refund Advance loan² starting December 11, 2025, and get up to $1,500, if approved, before you file or even get your W-2. Then, come back to file with your tax documents and apply for a Tax Refund Advance loan⁴ starting January 2, 2026, to get up to $3,500! Best of all, with our Money Today Guarantee,^1,3 you could walk out with money on a prepaid card the same day if you're approved!

Need money fast? Book your spot to apply today!

Get up to $1500 in minutes! Terms apply.

With approved Early Tax Refund Advance loan on a prepaid card. Starts Dec. 11. Book now.

Sharon Brucker, CPA Senior Tax Research Analyst Published on: November 20, 2025

Our Editorial Policy

^*This content is for general informational purposes only. It is not intended to be comprehensive and should not be construed as professional tax or financial advice for any specific individual tax situation. Taxpayers should always consult a qualified professional for individual guidance. This information constitutes a solicitation under the Treasury Department's Circular 230. Most offices are independently owned and operated.

¹The Money Today Guarantee is only available to clients who (i) are approved for an Early Tax Refund Advance loan; and (ii) elect and are eligible to receive loan funds on a prepaid card. Loan available during hours of operation. Hours vary by location. Loan application must be submitted by 11pm local time. If funds are not credited to your card before 12am local time, Jackson Hewitt will credit $50 within 2 weeks to your card if available or provide you a $50 eGift card. Fees, terms, and conditions apply to the prepaid card.

²The Early Tax Refund Advance (ETRA) is a loan secured by, and paid back with, your tax refund and is offered by First Century Bank, N.A. Loan amounts are determined by your expected federal refund, less authorized fees and underwriting. Loan amounts are $300, $500, $1,000, and $1,500. To be eligible for the $1,500 ETRA loan, your expected federal refund, less authorized fees, must be at least $5,000. Most approved applicants get $300. ETRA loan is subject to underwriting and approval. Loan proceeds are typically available on the same day of approval, if disbursed on a prepaid card offered at Jackson Hewitt offices, or in 1-5 business days with direct deposit. Terms and restrictions apply. For details visit jacksonhewitt.com/loans. Jackson Hewitt is a Rhode Island Licensed Loan Broker and holds other relevant licenses for the locations where this product is offered. If approved, a finance charge applies except for residents of CT and NE.

³The Money Today Guarantee is only available to clients who (i) are approved for a Tax Refund Advance loan; and (ii) elect and are eligible to receive loan funds on a prepaid card. Loan available during hours of operation. Hours vary by location. Loan application must be submitted by 11pm local time. If funds are not credited to your card before 12am local time, Jackson Hewitt will credit $50 within 2 weeks to your card if available or provide you a $50 eGift card. Fees, terms, and conditions apply to the prepaid card.

⁴The Tax Refund Advance (TRA) is a loan secured by, and paid back with, your tax refund and is offered by First Century Bank, N.A. Loan amounts are determined by your expected federal refund, less authorized fees and underwriting. Loan amounts are $500, $750, $1,000, $1,500, $2,500, and $3,500. To be eligible for the $3,500 TRA loan, a minimum refund amount of $5,000 is required. $7,100 is the minimum refund needed if you received an ETRA loan. Most approved applicants get $1,500. TRA loan is subject to underwriting and approval. Loan proceeds are typically available on the same day of approval, if disbursed on a prepaid card offered at Jackson Hewitt offices, or in 1-5 business days with direct deposit. Terms and restrictions apply. For details visit jacksonhewitt.com/loans. Jackson Hewitt is a Rhode Island Licensed Loan Broker and holds other relevant licenses for the locations where this product is offered. If approved, a finance charge applies except for residents of CT and NE.  

Because trust, guarantees, convenience & money all matter

TRUSTED GUARANTEES.

Be 100% certain about your money & your taxes, year after year.
NATIONAL PRESENCE. LOCAL HEART.

We’re in your neighborhood & inside your favorite Walmart store.
40+ YEARS. 65+ MILLION RETURNS.

The kind of trusted expertise that comes with a lifetime of experience.