Jackson Hewitt Advance + Tax Refund Offset: What Happens to Remaining Balance?

As of April 12th, I had this exact situation. When you get an advance from Jackson Hewitt, it's processed through Republic Bank. When your actual refund gets processed, it first goes to pay back the advance amount to Republic, then any offsets are applied, and finally the remainder (if any) is distributed according to your original refund method. So on March 29th, my refund hit, Republic got their portion for the advance, Treasury took their offset portion, and then the remaining amount was direct deposited to my account. It doesn't change your selected refund method.

The bank gets paid first, period. That's how these tax prep places make their money. Your offset comes second. If there's anything left, you'll get it through whatever method you selected when you filed. Direct deposit if that's what you picked. I learned this the hard way last year and was shocked at how little I ended up with.

I believe the process typically works like this: 1. Your tax refund is processed by the IRS 2. The IRS sends the full refund amount to Republic Bank (JH's partner bank) 3. Republic Bank deducts the advance amount plus any fees 4. The Treasury Offset Program then takes their portion for the student loans 5. Any remaining balance would be sent to you via your chosen method (direct deposit or check) In my case last year, I had approximately $4,300 in expected refund, received a $1,500 advance from JH, had about $2,000 in offsets, and eventually received around $800 via direct deposit to my account. The timeline was about 3 weeks from when my return was accepted to when I received the remaining funds.

I... I think I might have some insight here. I had a similar situation last tax season with an offset. After waiting for weeks and getting nowhere with the regular IRS number, I used Claimyr (https://youtu.be/_kiP6q8DX5c) to actually reach a human at the IRS. The agent explained that the refund goes to Republic first, then offsets are applied, then you get what's left. But... they also mentioned that sometimes there can be delays when offsets are involved, especially with joint returns. It might be worth calling to check on your specific situation if you're worried about it. Claimyr got me through to someone in about 15 minutes when I'd been trying for days on my own.

Here's the full scoop on Jackson Hewitt advances with offsets (I've been through this rodeo before): The IRS doesn't actually care that you got an advance - that's between you and JH/Republic. When your refund is processed, it goes like this: 1. IRS approves your refund 2. Before sending anything, they check for offsets (your wife's student loans) 3. They reduce your refund by the offset amount 4. The REMAINING amount goes to Republic Bank 5. Republic takes what you owe them for the advance 6. Whatever's left (if anything) goes to you via your chosen method The funny thing is, Republic is guaranteed their money because they've already checked your tax return and know you qualify for at least enough to cover their advance. The offset doesn't affect them - it affects your portion. So yes, if there's anything left after Republic gets paid back, you'll get it via whatever method you selected when filing (direct deposit or mail).

Have you considered just calling the Treasury Offset Program directly? They have a hotline (1-800-304-3107) where you can get information about your specific offset. Wouldn't that be better than relying on Reddit advice? Or what about contacting Jackson Hewitt directly? They deal with this situation all the time and can tell you exactly what to expect in your case. Republic Bank also has customer service that can explain their process. Sometimes I wonder why people make things more complicated than they need to be?

I successfully navigated this exact situation this year! Here's what happened: • Filed jointly with my husband who had defaulted student loans • Got $1,800 advance from Jackson Hewitt in January • Received offset notice in February for $3,200 • Refund was processed in March • Republic Bank got repaid first • Offset was applied second • Remaining $950 was direct deposited to my account The key thing is that the advance is essentially a loan against your refund. Republic Bank has first dibs on the money when it comes from the IRS. The offset doesn't affect their payment - it affects what's left for you.

Just to add some additional information that might be helpful: if you're concerned about the offset amount, you can request an offset trace by calling the Treasury Offset Program at 1-800-304-3107. They can tell you exactly how much will be taken and for what debt. I was so frustrated when this happened to me last year! Also, if you filed jointly and the student loan belongs only to your spouse, you might qualify for injured spouse relief (Form 8379) which could protect your portion of the refund from the offset. It's too late for this year since you've already filed, but something to consider for next year.