Can you take a lone out aginst your taxes from H&R Block??

Answer 1

Here's how it works. H&R Block does your tax return. They charge a fee for that. That fee does not have anything to do with the amount of your refund, but is instead based on the complexity of the return.

If you decide you need your money quickly, H&R Block can then electronically apply for a loan against your refund (less H&R Block fees) with HSBC (formerly Household Bank). This is called a Refund Anticipation Loan. In other words, if something happens, and the IRS holds your refund for some reason, you still owe the money back to HSBC. HSBC charges a loan finance charge, which is based on the amount of the loan, which is, of course, the amount of the refund. Also, if you file for but do not get the loan, you do not pay any additional fees. Fees for this service are charged only if you get the loan.

If you file in this way, HSBC opens a loan account, issues the check, and you get the money. In the meantime, the refund is directly deposited into the loan account, HSBC pays H&R Block their fees, which you didn't pay at the time of tax preperation, they take out the finance charge, and you are left with your check. It can indeed be expensive, but pricing should be discussed before forms are signed.

While H&R Block did recently attain a bank charter, it is not legal for any tax prep service to loan against refunds. In fact, all the major tax prep services use the same bank.

Let me know if I can be of more help.

Answer 2

1) If you don't pay your tax at the end of 4/15 that is a loan against the federal and or state government.

2) If you take a rapid refund from H & R block that is a loan by the H & R block.

Answer 3

If you have a bank account then try this. Do your taxes then get form 8888 and assign your refund to the bank. It's that simple. The bank may discount it somewhat but it will be nothing like the fess and Interest ect for a rapid refund or a Refund Anticipation Loan. Form 8888 is brand new this year and not even officially on the form list for the irs, but it will be it's already been approved.

Answer 4

H & R Block and other well-known tax services offer Rapid Anticipation Loans (RALs). If you're getting a refund, you can apply for this service but it's not guaranteed that you'll get it and it's very expensive. Depending on the refund, it can cost about $150 or more. And if you don't get the RAL, the money you 'spent' to apply for it, you won't get back.
H & R Block's RAL is sponsered by different participating banks, the banks loan the money to you at a high interest rate, when the IRS receives your return and disburses your refund, it will go directly to the bank.
You must also be careful, if you have any outstanding debts with the participating banks, they will claim any monies owed to them from the RAL.

Don't forget about free filing services from the IRS. Prepare and file your federal returns for free (H & R Block is one of the free services). Check with your state's Dept. of Revenue to file your state for free. Block allows direct deposit of your refund with the online service.
If you e-file and do it as early as possible, you'll probably only wait about 2 weeks to get your full refund.

In the end, the choice is up to you. But in my opinion and experience, getting a RAL isn't worth it.


To Original's response: Form 8888 is mainly for people who want to split up their refund into seperate accounts (checking, savings and/or retirement). This is still considered a direct deposit and most likely free. If you're only refunding your money to one account, you can use form 8888 or you may still use the appropriate line on your 1040.
This goes into effect in January.

Answer 5

Do you mean against your anticipated refund? If so then yes you can but the interest rate is outrageous. So I would advise against it. But if you really need the cash hten it's not as bad as going to a cash checking operation. But if you file electronically that cuts the time you have to wait for your refund check. Also credits cards charge a lower interest rate about 18-19% APR, and would be a better option. Just so that you know I am an Accounting student and we discussed this in a class lecture last week.

Answer 6

You can't take out a loan but H&R Block will buy your return from you on the spot. There is a hefty service fee attached however so I wouldn't suggest you do it unless you absolutely have to.

Answer 7

I believe if your expecting a return , they'll give you a check for the amount and they get your return. Does H&R Block loan money like a back, try their web site and see if they do. Good Luck...

Answer 8

I'm assuming you mean a loan. Otherwise you will be a-lone on this issue.