H& r Block Ease Of Use
Preparing your tax return online with H& R Block is similar to sitting down with a tax preparer. The software walks you through the tax preparation and filing process with a series of interview-style questions.
As part of my review, I went through the process of preparing three sample returns. Hereâs how long it took me to get from start to filing for each one:
- Single taxpayer, no dependents, W-2 income and the student loan interest deduction: 23 minutes
- Single taxpayer, no dependents, self-employment income, federal and state estimated tax payments: 30 minutes
I did run into one stumbling block while preparing the sample return for a married couple filing jointly. On the Alabama state return, the software doubled their income, showing they had $260,000 of taxable income rather than $130,000 and owed taxes and an underpayment penalty. After spending several minutes going back through the interview forms, I couldnât figure out how to fix the issue without deleting everything and starting over, so I gave up.
Such a problem could really derail an inexperienced DIYer and potentially even lead to significantly overpaying their tax return if they didnât understand what was going on and reach out to tech support .
Despite this issue, I found H& R Blockâs interface to be pretty user-friendly. A banner on the left-hand side of the screen keeps a running tally of the estimated federal and state refund or amount due throughout the process.
You have two options:
Alternatives To A Tax Refund Loan
Tax refund loans are not usually worth the high cost, so here are a few alternatives that may be better for you:
Who Is An H& r Block Loan Good For
If you already plan to use H& R Block for tax preparation this tax season, you may want to consider an H& R Block Refund Advance to take care of a pressing, high-interest bill or loan, such as a payday loan.
Having to use H& R Blocks Emerald Prepaid Mastercard® means transaction fees could pile up unless you move your refund advance funds to a regular account using the one-time, free transfer and then close the card once your refund comes in. The Emerald Prepaid Mastercard® cardholder agreement says you may cancel the card by returning it to the issuer, and itll send you a check for any balance you might have.
Otherwise you may want to avoid borrowing through H& R Block altogether and just wait for your tax refund.
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What Can You Do To Speed Up Your Tax Refund
If you insist on getting a tax refund anticipation loan, please perform your due diligence. Go for the fee free loans of up to $1,300 and by all means stay away from the lines of credit and all other loans that charge fees and hefty interest.
If for some reason you cant get a free anticipation loan, youre much better off simply waiting for your tax refund to come in. If you want to speed up that tax refund heres what you should do:
File Early You can file your taxes as early as Jan. 1st although we estimate that the IRS wont start accepting returns until Jan. 25, 2022. You can use a tax prep service or file online through one of these places.
Dont Forget About The Delay For EITC and ACTC If you are filing with the Earned Income Tax Credit or Additional Child Tax Credit, your return will automatically be held until February 15 to be processed, so you likely wont even get your return until late February or early March.
Have All of Your Information Together Before you file make sure you have everything that you need. Impatience could cause an error on your part and delay your tax refund. Heres a list of items youll need to file.
File Electronically Filing electronically is much quicker than filing a paper return and should result in a faster refund. Remember, if you file by mail, you have to mail in your return , and the IRS has to manually put it into the system . Filing by mail typically adds 12 weeks to your original 21 days if you e-file.
How Do I Get My Money
Once you have been evaluated, you should find that the money has already been deposited into your account on the same day. Take note that this money will never be placed in your bank account. It will be placed on the prepaid H& R Block Emerald Mastercard. You can use this in the same way as any other type of . However, theres no overdraft protection, so make sure you have a high enough balance prior to making a purchase.
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How Tax Refund Advances Work
You may want to hustle if a tax refund advance interests you. Most of the companies offering this product have a mid- or late-February application deadline. TurboTax says its Feb. 15 offer deadline is subject to change but didn’t offer details.
And before you take advantage of these products, make sure you understand how they work and what to watch out for.
For instance, the amount of the advance you can get depends on which tax preparer you use and how big a refund you’re expecting, among other factors. H& R Block is offering advances of up to $3,000 per federal tax return. Jackson Hewitt will offer up to $7,000, and Liberty Tax offers as much as $6,250. TurboTax is offering advances of up to $1,000 per federal return, and TaxSlayer says it will offer the same.
The main requirement in all cases is that you must get your taxes done by the company offering the refund advance. To apply for an advance from the big three storefront companies, youll need to go to the tax preparers office. With TaxSlayer and TurboTax, which have no brick-and-mortar presence, you handle the application process online.
The tax-prep companies told us you’re not on the hook if your refund turns out to be less than the advance you received. You wont need to pay them back the difference.
Reasons For And Against Tax Refund Loans
The most obvious reason to consider a tax refund loan is because you need money quickly and for the short-term. Maybe its February and you have a major bill coming up. Or perhaps your emergency fund isnt quite big enough and you could really use the money from your tax refund. While the IRS issues refunds typically within 21 days after getting your return , some lenders could get you the money faster, depending on your refund option.
The people who most commonly receive tax refund loans are taxpayers who file early in the tax season and claim the Earned Income Tax Credit or the Additional Child Tax Credit . Under federal law, the IRS cannot provide tax refunds right away for people who claim these credits. For 2022, when you file your 2021 taxes, the IRS says that the earliest date you could expect get an EITC/ACTC refund will be the first week of March. So if you claim those credits, and are filing early, you may have to wait longer than usual.
If you are looking for a loan that lasts more than a couple of weeks, a tax refund loan is not the best choice for you. It also may not be a good idea if you suspect for some reason that you wont be able to pay back the loan in full .
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H& R Block Refund Advance Loans
H& R Block advertises $0 fee, 0% APR loans. Its Refund Advance loans are available now through February 28 in five amounts, from $250 to $3,500. H& R Block says most loan funds are made available the same day you apply for them. But, take note: The funds are only made available to you via an H& R Block Emerald Prepaid Mastercard.
The H& R Block Refund Advance loan is open to H& R Block customers who e-file through a participating H& R Block office. Eligibility is also determined in part by how much you are expected to receive in your federal refund.
Money Must Be Deposited Onto An H& r Block Prepaid Card
If youre approved for an H& R Block Refund Advance loan, the money will be loaded onto an H& R Block Emerald Prepaid Mastercard® rather than deposited directly into your bank account.
Theres no charge to make a one-time transfer via check or automated clearing house from your card account to your bank account. But the H& R Block Emerald Prepaid Mastercard® has a lot of fees that could pile up fast if you use it like a traditional debit card.
- Reloading fees Up to $4.95 for cash reloading, depending on the reload provider
- Bill payfees 95 cents each
- ATM fees $3.00 per withdrawal and $1.50 for each balance inquiry or decline, plus you may be charged additional fees by the ATM operator
Theres even a $4.95 monthly fee for inactivity that kicks in if you go 60 days without a transaction.
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Liberty Tax Easy Advance
Deadline to apply: Feb. 28 at participating locations.
Amount of the advance: In loan amounts of $500, $800, 1,300 $2,500, $3,000, $4,750 and $6,250, depending on your eligibility. A finance charge as high as 35.77 percent is charged on Easy Advances of $2,500 or more.
How it works: Have your tax return prepared at a Liberty Tax location. Your advance will arrive within 24 hours after your return has been accepted by the IRS . Funds can be loaded onto a NetSpend Liberty Tax Prepaid Mastercard or direct deposited into an existing account.
Prepaid card details: NetSpend Liberty Tax Prepaid Mastercard has a variety of fees, including $2.50 per ATM withdrawal.
Where Can I Get An Advance On My Tax Refund
No-fee refund advance loans are available to filers who are 18 or older at H& R Block, TurboTax, and Jackson Hewitt.
You have to apply for the loan after you file your tax return, meaning you only get one shot at approval . The companys partner bank will review your application and may consider your tax payment history as well as review your . Applying for the loan shouldnt affect your .
Always look at the interest rate. Many predatory lenders will market personal loans as refund advances during tax season, but theyll charge excessive interest rates and fees. The options outlined here are free, though you might be required to pay for tax preparation prior to applying for the loan and ATM fees to get cash off the refund debit card.
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How To File With H& R Block Today
H& R Block doesnt just offer a refund advance loan with no application fees and 0% interest. They also offer a tax platform that can be used by most American taxpayers.
They have a range of forms that are available for Americans with simple to complex tax affairs. It couldnt be easier to create an account and get started with them today.
It only takes minutes to start on your taxes, and its even faster if youve used them in the past because you can simply import your previous information.
What Is A Refund Advance Loan
A refund advance is something several tax platforms offer. You apply for a refund advance, and the money is loaned to you.
Instead of paying it back, the money is taken from your tax refund instead. Essentially, youre just getting your refund earlier than everyone else.
This year H& R Block is offering refund advances from January 4th to February 28th. So, you dont have much time to apply.
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How To File With H& r Block Today
H& R Block doesnt just offer a refund advance loan with no application fees and 0% interest. They also offer a tax platform that can be used by most American taxpayers.
They have a range of forms that are available for Americans with simple to complex tax affairs. It couldnt be easier to create an account and get started with them today.
It only takes minutes to start on your taxes, and its even faster if youve used them in the past because you can simply import your previous information.
Alternatives To Refund Anticipation Loans
Have you ever thought about simply getting a personal loan? I know this might sound a bit weird, but you might get more money, a better interest, and an all around better deal.
A personal loan can be a great way to pay off high interest credit card debt, consolidate multiple loans, get your car or house fixed, and more. The helpful feature about these loans is that you have a set payback period versus having to do your taxes and then waiting for the return.
We recommend shopping for a personal loan on Credible. Credible is a comparison site, where you can see what different options you might qualify for online in just 2 minutes. You can borrow anywhere from $1,000 to $50,000, with APRs as low as 3.99% . Thats a great deal .
Check out Credible and see if it makes sense for you here.
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What Is A Tax Refund Loan
A tax refund loan is officially known as a refund anticipation loan . It is a loan that a lender makes based on the amount of your federal income tax refund. Lenders are often small financial institutions. This may require a little research on your part to make sure the lender is reputable. Many tax filing services will also offer you a tax refund loan after you file with their service.
Tax refund loans typically only last a couple of weeks just long enough for the IRS to process your tax refund. The loan that you receive from a lender will have the value of your anticipated refund minus any fees or interest charges. You may receive the loan on a prepaid card, on a check or as an electronic deposit in your bank account. Some lenders only offer one of those methods while others may offer multiple options.
Once the IRS processes your refund, it will go directly to the lender. At this point, your loan is repaid and you made it through tax season. The only other thing to keep in mind is that if your refund is smaller than your tax refund loan, you will still need to pay the loan back in full.
Fantastic Service Quick Efficient Quality And Reassuring
This app is extremely user friendly. It walks you through literally every scenario. If you don’t understand something, you can click on a link below what you’re looking at for more information. If you still have questions there is another section of frequently asked questions. If you Still need assistance there is a chat available with many options, as well as chatting with a live person. Beyond that if you still have questions you’re able to email, message, chat with or speak with a live Professional Tax Return representative. The customer service is amazing, efficient, friendly, professional and prompt service.The price is affordable and fair. I saved a ton of time, money and stress by being able to use this app and self service but with the Peace of Mind knowing that not only the system looked over my work, but that it was double checked by a live human being. And I have the reassurance of knowing H& R Block has my back if any issues arise or if there’s any type of IRS audit. Just an overall exceptional service.
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How To Get The Emerald Advance Loan
When ones taxes are prepared at a participating H& R Block office, they can apply for the early refund advance with an in-store tax preparer.
Those who are eligible can complete an application. If approved, theyll be notified on the amount theyll receive by MetaBank®. Criteria for approval include:
- Being owed a refund by the IRS
- Filing a tax return with H& R Block
- Meeting eligibility requirements
Can I Get Prequalified
This process provides you with an opportunity to see if you prequalify to apply for the Refund Advance loan. This means Pathward, the lender for Refund Advance, will evaluate whether you are eligible to apply for the Refund Advance loan based in part on your tax situation from last year and certain eligibility criteria determined by the bank.This offer is not guaranteed, so if your tax situation or other relevant inputs change, your prequalification to apply could change. By going through the prequalification process, you are not applying for the Refund Advance loan you must still pass the eligibility criteria and submit an application at the time you file your tax return.
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