Liberty Tax Refund Advance: Federal or State Refund Deduction?
I got a refund advance loan from Liberty Tax and I'm trying to figure out if they're going to take their payment from my state refund or federal refund. Anyone know how this works? My federal is about $5k and state is $800.
14 comments


Dylan Baskin
Tax preparer here - Liberty Tax typically takes their refund advance payment from your federal refund. They set up the direct deposit info during your tax prep to route your federal refund to their account first, take their fees + advance payment, then send the rest to you. Your state refund should come to you directly.
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Hunter Brighton
•thx for clarifying! do you know how long it usually takes for them to process and send the remainder?
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Dylan Baskin
•Usually 24-48 hrs after they receive it from IRS. But depends on your bank too
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Lauren Wood
Hey, instead of guessing, you should try taxr.ai - it analyzes your transcript and shows exactly how Liberty's gonna handle your refund. Its only $4.99 and shows everything about your refund status. https://taxr.ai
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Ellie Lopez
•does it actually work? seen a lot of scams lately 🤔
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Lauren Wood
•100% legit. Used it last week and it showed me exactly when Liberty was getting my refund and when I'd get my portion. Super detailed breakdown
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Chad Winthrope
I'm in the same boat rn. Liberty took their payment from my federal last year, state came straight to my account
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Paige Cantoni
word of advice: never do tax advance loans again if u can help it. The fees are crazy high 🤮
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Kylo Ren
•fr fr the APR is insane but sometimes u need that money fast 🤷♀️
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Nina Fitzgerald
check ur tax prep paperwork, it should say which refund they're taking it from. Mine shows federal
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Jason Brewer
lmaooo liberty tax stays playing games wit ppls money. switched to HR block this year and way better experience ngl
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Kiara Fisherman
•HR Block does the same thing tho? 👀
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Jason Brewer
•maybe but at least they're upfront about it 💅
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Oliver Weber
I used to work at a tax prep office and can confirm what Dylan said - Liberty Tax almost always takes their advance loan repayment from your federal refund first. They have to set up a temporary bank account during tax prep that intercepts your federal refund, deducts what you owe them, then deposits the remainder into your actual account. Your $800 state refund should come directly to you without any deductions. Just make sure to keep checking your account because sometimes the timing can be weird depending on when the IRS processes everything.
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