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POLL: Would or do you pay H&R Block to get a "refund loan"?

N

nebula

Golden Member
The H&R Block commercials that advertise that you can get your refund the day you go in by paying them $39.95 for a "refund loan", just bother me. I do remember when my cash flow wasn't what it is now, that getting my tax refund was as anticipated event, but what bothers me is this; in today's age when efiling can be done at home in your underwear, why would you pay a ransom to get your refund slightly sooner. With efiling and direct deposit, you will get your refund in less than 4 weeks if not sooner.

Vote and comment!
 
Hell no.
But then you have to think about the target demographic. Clearly people who can't manage their finances. Just getting a refund means that they overpaid Uncle Sam, but they overpaid to the point that they need the money RIGHT NOW and can't wait a few weeks. Not good.

But then you have to take into consideration the thinking of such people. Ever asked them how much they pay in taxes? Chances are you'll get an answer like "Oh, I got $500 back last year... "
rolleye.gif
 
No, they screw you - how hard are you up for money that you're willing to allow them to cut it off at the knees? Just wait a while, or e-file it and have it in your bankaccount in a couple of weeks!

As Vic alluded to, this is attractive for dumbasses who have no personal restraint. Such people also represent those who overextend themselves and have bad credit, and basically suck!
 
If you send your taxes in this early, you'll likely get your check in a week or two (comes pretty quick).

What's even more weird is some people like to send in extra cash so they can get a big refund later in the year... like it's some kinda prize. Like if you paid $200 for a $100 item and the store gave you $100 back it's a prize... NO it's your damn money that you overpaid.

Don't get me wrong, yes, It's nice to get that big check, but, you could be putting it into a savings account instead and earning interest on it... and even if you had to pay some back at the end of the year (because you didn't pay enough during the year) you still earned a bit on that cash instead of the government during that time. [And you get to pay taxes on the interest too, but, still you come out ahead!].

But, hey, to each their own.





 
Originally posted by: Vic
Hell no.
Click to expand...


Plus, I target paying in taxes, not getting anything back. Paying to much into the taxman is one of the stupidist things most people do.
 
A lot of people don't understand taxes for a sh*t. I've heard of people thinking that it's a financially wise move (principles aside) to give money to charities, so that they can lower their tax burden, oblivious to the fact that $100 taxed is still more than not getting the $100 at all!
 
It's targeted at people who, having only a single W-2 form and no other tax documents, can't even fill out the tax form themselves without having to pay someone $30 to do it. And once they are at the tax preparer, they don't care that it costs another $50 to get their $400 refund back a bit sooner. All they see is "I can have $350 right the hell now, why would I wait."

To them, the difference between $350 and $400 is irrelevant compared to the couple of weeks sooner they get the money. It's sad that those people make most of their financial decisions using that kind of reasoning.

It's all about understanding the time value of money. People who understand it use it to their advantage. People who don't understand it end up on the losing side.
 
Originally posted by: kranky

It's all about understanding the time value of money. People who understand it use it to their advantage. People who don't understand it end up on the losing side.
Click to expand...

The time value of money is that money is worth more now than it is later. Not that I think people who are paying H&R Block extra to get an advance on their tax refund are going to invest their new gains somewhere which generates that difference in the four weeks they would otherwise have to wait.
 
Originally posted by: CPA
Originally posted by: Vic
Hell no.
Click to expand...


Plus, I target paying in taxes, not getting anything back. Paying to much into the taxman is one of the stupidist things most people do.
Click to expand...
We aim for that too so why would I want to pay them money for an advanced loan (that sounds like pawning the title for your car or some other pawn shop level economics) when I'm not getting anything back anyway. 😉 I actually had a very good year in some work I do in my spare time that doesn't have taxes automatically withdrawn so I'm actually going to owe quite a bit this year. Not everyone gets (or wants to get) a refund. But the people they're targeting most likely DO get refunds every year since they probably don't know how to adjust their withholding.

 
Originally posted by: Electric Amish
No. By e-filing and direct depositing, I can get it into the account within a few weeks.
Click to expand...

And if you do your taxes as soon as you can after you get all your documents, maybe even less. I think I got mine last year in about two weeks. In other words, the sooner the better!
 
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