I thought H&R Block paid themselves from your refund and gave you back money?

Question

I had a pile of tax returns done by h&R Block, but I can't have them filed until I paid the balance of about $350, though I have close to $1000 coming back. I thought they gave cash back right away?! Do they not do that anymore or am I just confused entirely?

Answer 1

Sometimes even on the current year's return, they will ask for their fees up front. Especially if there's some indication that another government agency has a lien against your refund.

Answer 2

No, it is not always done that way.

Loans against your refund are not done by Block but by a third party bank and they can only do it for the current tax year.  If you had prior year returns done, you would have to pay for them directly.

When any tax prep office gives you money "right away" it is a loan against your refund.  These loans tend to be very bad deals.

Answer 3

The repid refund, and their taking their fee out of your refund, are two options that they offer (and charge extra for).  You have to qualify to get into those programs - they won't offer them unless they are pretty sure that your refund will actually arrive

Answer 4

H&R block charges for doing tax returns.  The Rapid refund you are talking about is a system where you sign over your refund to them (for a LARGE fee), and you get the balance right away.  It's a VERY bad deal since if you E-file a return you get your refund in a couple of weeks now.  

The Rapid refund is only for E-filed returns and only for the current year (which you are too late to E-file now).