An answer to How much does H&R Block charge for direct deposit? H&R Block charge a service fee of $39.95 for clients who file their taxes at an H&R Block tax office and a cost of $34.95 for online filers.
H&R Block has a “Refund Transfer” service fee of $39.95 for clients who file their taxes at an H&R Block tax office. The cost is $34.95 for online filers. “Clients can pay upfront with cash, check, debit card or credit card for no additional fee,” said Susan Waldron, a spokesperson for H&R Block.
“Clients can also choose a Refund Transfer, which includes a temporary bank account through Bofi Federal Bank to receive their refund, which allows the client to pay their tax preparation fees out of this account after our services are complete,” she said.
Other tax firms, including TaxSlayer and TaxAct, offer ways to have fees deducted from your refund, too, again for an added fee.
To cover those fees, a temporary bank account is set up by a bank that’s partnering with a tax preparation firm. The refund is deposited into that account and then the paid preparer is able to deduct the fees from that account.
A 2012 study by the Government Accountability Office indicated that more than 20 million taxpayers at that time had agreed to programs that would enable them to deduct return preparation fees from their refunds.
The use of what’s called “Refund Anticipation Checks” — often advertised as “no out-of-pocket costs” — has come under fire by consumer advocates. Some say more effective disclosure is needed so taxpayers better understand fees.
For example, taxpayers who have bank accounts and access to credit should have little need for such accounts, according to the GAO study.
The GAO study also pointed out that consumers can be hit with other extra fees, too, such as those associated with accessing a refund put on a prepaid debit card.
Yet, if you cannot afford to pay upfront to have your taxes done, there are other less-costly options. And those options are available even to last-minute filers.
Remember, more than 70% of all taxpayers are eligible for free online tax services via the IRS site called “Free File.” See www.irs.gov.
The Free File program has provided more than $1 billion in free tax software in the past 16 years, according to the Free File Alliance.
Even so, only about 2.5 million taxpayers used Free File nationwide — or less than 2% of individual returns filed electronically in fiscal year 2017, according to the IRS Data Book. In Michigan, only 89,544 returns were filed via Free File.
If your income is below $66,000 you’re eligible for free online federal tax preparation software that is obtained directly through the IRS site.
Some programs offered online through “Free File” stipulate that the taxpayer be age 52 or younger. But some have no age limits if you live in specific states. You’d need to scroll to see what free online service might apply to you.
Alliance members are not required to provide free state returns for all 50 states but some do so.