refund anticipation loans
Poor Sam didn't take our advice. He let
H&R Block do his taxes and then took out a refund anticipation loan. The money, which was deposited on an H&R Block Emerald Card, is now tied up by several inexplicable holds for transactions he didn't make. The companies supposedly holding the funds have no clue who Sam is, or why they'd be holding his money. H&R Block's only response is to charge Sam $2 whenever he calls their customer service line for help.
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taxes
Last year
H&R Block told the IRS that reader Tuyen made $33,000 in
charitable donations. Tuyen, who earns $60,000 per year, collected a huge rebate, but when he returned to
H&R Block this year, he learned that thanks to the screwup he now owes the IRS $10,000 in back taxes.
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h&r block
It's too late for this year's tax season (unless you're doing it wrong), but H&R has issued an apology of sorts by announcing it will give a $100 coupon or free TaxCut software to gay couples who were shut out of their online programs this year due to a
programming oversight. Don't expect to take advantage of the offer if you were turned away online and went elsewhere, though—the offer is only good for "civil union, domestic and same sex partner clients, who started with TaxCut online and then completed their returns in one of our retail offices." If you fit that requirement, you can
request the coupon or software here.
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followups
H&R Block recently got into trouble because when a Connecticut same-sex couple tried to file their taxes through H&R Block's website, the system spat back, ""We don't support Connecticut Civil Union returns." One of our readers wrote H&R Block
about our post and their VP of Marketing actually wrote back to him to describe what she felt was media sensationalization of the story. She says that the problem happens because the Federal government doesn't recognize same-sex civil unions. The information for state tax returns gets inputted based on the federal, so in this specific case, it's not "flowing" correctly. It sounds like they're working on fixing that, though. Here's her email in full:
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e-filing
Last week we wrote about I-Can! E-File, a
free electronic filing service for your federal income taxes. It's a great idea, and we're thankful to the Legal Aid Society of Orange County for doing something like this—but you might want to find an alternative this year and give them some time to work out the kinks. Today a reader emailed us to point out that icanefile.org's password system can be easily cracked, because instead of letting you choose an original password, it requires you to use your name and social security number to set up an account.
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taxes
I-CAN! is a web-based tax preparation tool that will file your tax return completely free of charge. I-CAN has no eligibility criteria or income restrictions and will eFile your state return for free if you live in California, Michigan, New York, Pennsylvania or Montana. It almost sounds too good to be true. So why isn't I-CAN! a member of the IRS' Free File Alliance?
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yuck
Refund anticipation loans are bad enough, but H&R Block and
Jackson Hewitt want you to get a RAL, and then put it on a fee-riddled pre-paid debit card. What a great idea!
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advertising
Kevin sent in this ad for H&R Block trying to market to college kids by giving them $10 in "pizza cash" if you file through H&R Block. This sounds tasty, except that due to their low income, most college kids won't have to pay any taxes and it's pretty easy to do with
FreeFile through the IRS.gov website, for free, natch. But file through H&R Block and you'll probably be paying at least $60. So, you could buy yourself $10 of pizza, or pay $50+ for H&R Block pizza. They still teach math in college, right?
subprime meldown
H&R Block's subprime mortgage lending arm has reported a quarterly loss of $676.8 million, dragging down the entire company. In all, all of H&R Block lost $85.5 million in Q1. From BusinessWeek:
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taxes
We haven't been getting many complaints about tax places this year but as far as we know, they still suck. They're known for messing some people's returns up pretty bad, or encouraging people to take questionable deductions. Like making up a child, for instance. Here's a walk down memory lane, a lane that's definitely shady...
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refund anticipation loans
The number of refund anticipation loans declined 22.5% last year as consumers took advantage of cheaper and only slightly slower alternatives, NYT reports.
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secondlife
Peter Klaus, with
Fleishman-Hillard Digital, apparently worked with
H&R Block on its SecondLife branch I blogged about yesterday morning. According to Klaus, the SecondLife version of H&R Block gives pretty good deals on services (for whatever those are worth), plus tax advisors available on Tuesdays and Thursdays to give free advice.
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taxcut
H&R Block is offering Tax Cut Basic federal tax preparation software to directly compete with TurboTax. It's free, for a price.
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h&r block
The Consumerist has its fair share of typos, but at least we don't make them in a fixed medium.
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