Jackson Hewitt Review: Is Their Refund Advance Legit?

Jackson Hewitt legitimacy and licensing

Yes. Jackson Hewitt was founded in 1982 in Virginia, is based in Jersey City, New Jersey, and says it has put its name on more than 70 million returns. Corsair Capital bought a controlling stake from H.I.G. Bayside Capital in May 2018. Most offices are independently owned franchises, which is why experiences differ so much.

The corporate BBB profile is rated A- and isn’t accredited, with 231 complaints in three years. In 2007 the Justice Department shut down corporations running Jackson Hewitt franchises in Atlanta, Chicago and Detroit over fraudulent returns; it made no allegations against Jackson Hewitt corporate. Whichever office you use, check that your preparer signs the return with their own PTIN.

the Jackson Hewitt refund advance legitimacy and licensing

Yes, but it’s a loan, and it isn’t free. The Tax Refund Advance is made by First Century Bank, N.A. at a 35.99% APR, in amounts of $500 to $3,500, and it’s repaid automatically from your refund. Jackson Hewitt estimates the finance charge at $35.50 on a $1,500 loan and $82.83 on $3,500, assuming repayment in 24 days. Interest can run up to 90 days if your refund is delayed. An Early Tax Refund Advance of $300 to $1,500 runs in December and early January.

Applying doesn’t affect your credit score, and approval depends on the size of your expected refund. If you don’t need cash before your refund, e-file with direct deposit; the IRS says most refunds arrive within 21 days.

Jackson Hewitt cost

Online: $25 flat for federal and state returns, regardless of complexity, paid when you file. If you have the fee taken from your refund through eCollect, an extra fee applies.

In an office: Jackson Hewitt doesn’t publish prices. Each office sets fees based on the forms your return needs, so self-employment, rental or investment income costs more. Ask for a written estimate before work starts and ask what any refund-processing fees will be.

What the guarantees actually cover

• Lifetime Accuracy Guarantee. If the office makes an error that raises your tax, it pays the penalties and interest, but not the extra tax. You must notify it within 30 days of your first notice from the tax agency.
• Biggest Refund Guarantee. Federal returns only. If you’re owed a bigger refund on the same facts, it refunds your prep fees plus $100, but you must file the amended return with Jackson Hewitt by the IRS deadline.
• Refund Recheck. A free review of past returns when you file; filing a new or amended return costs extra.
• Worry-Free Tax Protection. An extra-cost add-on. Ask what it costs and what it covers before buying.

Complaints and how to avoid problems

Most complaints on BBB and Trustpilot are about fees that were higher than expected, preparer errors that led to amended returns or IRS letters, and offices that don’t return calls. Because most offices are franchises, the corporate office often refers problems back to the local owner.

Get a written fee estimate, ask whether your preparer has credentials such as an enrolled agent or CPA license, review the return before signing, and keep copies. If an office won’t fix an error, escalate to corporate customer care, file a BBB complaint, and report preparer misconduct to the IRS on Form 14157.

Rules that protect you

Every paid preparer must have an IRS Preparer Tax Identification Number and sign your return. You’re legally responsible for what’s on your return even if a preparer made the mistake, which is why the accuracy guarantee covers penalties and interest but not the tax itself. You can check a preparer’s credentials in the IRS Directory of Federal Tax Return Preparers.