In that case, you’d pay for tax prep but then find yourself ineligible for the loan
“If the client’s tax refunds do not issue or are insufficient to fully repay the loan, the client is not generally obligated to pay the difference,” an H&R Block spokesman told Consumer Reports by e-mail. “There are certain exceptions, such as cases of fraud.”
Questions to Consider
Is an advance worthwhile for me? That depends on your situation, says Bruce McClary, spokesman for the National Foundation for Credit Counseling (NFCC), based in Washington, D.C.
If you’re in bind-say, finding it hard to pay debts while on federal government furlough-these products, even with interest, might serve you better than racking up interest and fines for not paying other debts, he says.
“An advance could help someone avoid severe financial setbacks,” McClary says. “But I would caution consumers to scrutinize those high-interest products very closely.”
Do I qualify for an advance? If you don’t expect a refund from the IRS, you shouldn’t apply. And some situations may disqualify you. “If the taxpayer owes governmental debt or student loan debt, they may be subject to an IRS offset,” says a Liberty Tax spokeswoman. Continue reading