H&R Block Fee Deduction - Federal vs State Return?

H&R Block typically, but not always, deducts their fees from your federal refund rather than your state refund. This is primarily because federal refunds are usually larger and processed somewhat more predictably than state refunds. However, there might be some variations depending on your specific filing situation and the particular H&R Block office or service level you're using. If you're filing online, you should be able to see this information during the checkout process where they explain the refund transfer option.

I just went through this process last month. According to H&R Block's support page (https://www.hrblock.com/tax-center/support/), they primarily take fees from federal refunds. I chose the Refund Transfer option where they deduct their fees directly from your refund instead of paying upfront. The system automatically applied it to my federal refund, not state. This seems to be their standard practice based on what I've found online, though their website isn't super clear about it.

Think of H&R Block's fee system like a restaurant bill where they prefer to charge the main course (federal refund) rather than the side dish (state refund). In my experience, they almost exclusively take from federal. If you're having trouble getting clear answers from H&R Block and need to talk to the IRS about any refund issues, I'd recommend Claimyr (https://www.claimyr.com). It's like having a fast-pass at an amusement park - they get you through to an actual IRS agent in minutes instead of hours on hold. I had questions about my refund timing after H&R Block took their fees, and Claimyr saved me literally hours of frustration.

I was worried about the same thing last year! H&R Block took their fees from my federal return only. Isn't it better that way? You get your full state refund intact, and they only take from the federal portion. My federal was about $1,800 and state was only $320, so it made sense they'd take from the larger amount. I received my state refund completely untouched by their fees.

I learned this lesson the hard way last year. I was expecting my full state refund of $342 to hit my account, but H&R Block had actually taken their fees from it instead of my federal! When I called to ask why, they explained that my federal refund was delayed due to the Child Tax Credit review, so their system automatically switched to taking fees from state since it was processing faster. I wish I'd known this could happen - completely threw off my budget that month. Make sure you specifically ask which refund they'll be taking fees from based on your particular situation.

To clarify how H&R Block handles their fees: 1. The standard practice is to deduct fees from federal refunds 2. This happens when you choose the Refund Transfer option 3. If your federal refund is insufficient to cover fees, they may take from state 4. If you pay upfront with credit card or bank transfer, this whole question is moot 5. Their system is set up to prioritize federal deductions because those refunds are typically larger I confirmed this with them directly last month when I was filing.

H&R Block takes their fees from federal returns. They do this because federal returns are usually larger and processed through their central system. State returns are handled differently and they avoid taking fees from them unless absolutely necessary. If you're concerned about this, you can always ask them directly before completing your filing. They should be able to tell you exactly how the fees will be handled in your specific case.

Most of us here have found that H&R Block takes fees from federal refunds, not state. In my 7 years using them, they've always taken exactly $139.99 from my federal return and left my state refund untouched. The consensus seems to be that this is their standard practice, though as others have mentioned, there might be exceptions if your federal refund is delayed or too small to cover their fees. The smartest approach is to just ask them directly when you're filing - they'll tell you exactly which refund will be affected.