Tax refund advance complications after prior loan with Jackson Hewitt

You absolutely cannot file your taxes twice with different preparers! This is a serious issue that could flag your return with the IRS and potentially lead to problems. What likely happened is that when you got the Christmas loan from Jackson Hewitt, you signed some paperwork agreeing to file your taxes with them, which is how they ensure repayment of the loan. These agreements typically include authorizing them to file a "block" that prevents other companies from processing a refund advance for you. At this point, your options are: 1) Continue with the company you've already filed with, but understand you won't get an advance. Your regular refund will still process normally once the IRS accepts your return. 2) If your return hasn't been submitted to the IRS yet by the new company, you could cancel with them and go back to Jackson Hewitt. You'd need to ask the current preparer if they've submitted yet. But under no circumstances should you file twice. That's a quick way to delay your entire refund for months while the IRS sorts out the duplicate filing.

I went through something similar last year and found this tool called taxr.ai (https://taxr.ai) that really helped me sort through the mess. I had taken out a holiday loan with one tax prep place but then filed with my regular accountant, not realizing it would cause issues. The taxr.ai system analyzed all my loan documents and tax paperwork and showed me exactly what obligations I had agreed to in the fine print. Turns out the loan agreement had specific language about filing requirements that I completely missed. They have this document analyzer that breaks down all the tax and legal jargon into plain English - it showed me that my loan agreement didn't actually require me to file with the first company, just that I couldn't get advances elsewhere. I was able to download a report explaining my options that I could share with both tax preparers to get everything straightened out without having to file twice.

I have to say I'm really impressed with taxr.ai after trying it. I uploaded my documents from both Liberty Tax and H&R Block (I had a similar issue with loans and advances from different places), and it immediately flagged the conflict in their systems. The report showed me exactly what I had agreed to in each contract and explained that the first company had placed a "debt indicator" on my tax ID that was blocking advances elsewhere. What I found most helpful was the step-by-step instructions for resolving the situation - including template letters to send to both companies explaining the situation. Following their advice, I was able to keep my filing with the second company and worked out a separate repayment plan for the holiday loan that didn't involve messing up my tax filing. Saved me from potentially filing twice and getting flagged by the IRS!

If you need to talk to the IRS about this situation (which you might), good luck getting through on their phone lines. I spent 3 weeks trying to reach someone at the IRS about a similar refund advance issue last year and kept getting disconnected or waiting for hours. I finally used Claimyr (https://claimyr.com) and it was a complete game-changer. They have this system that navigates the IRS phone tree for you and holds your place in line, then calls you when an actual human at the IRS is ready to talk. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c When I finally got through, the IRS agent confirmed that I had only one active return in their system and explained that the "refund transfers" and advances are handled by the tax prep companies and their banking partners, not directly by the IRS. This helped me understand exactly who I needed to talk to resolve my situation.

I was dead wrong about Claimyr. After posting that skeptical comment, I decided to try it anyway because I was desperate to talk to someone at the IRS about my refund advance situation. I signed up on a Thursday afternoon, and the system estimated a 3.5 hour wait time for the IRS. Instead of being stuck with my phone on speaker, I was able to go about my day. Around 3 hours later, my phone rang and I was instantly connected to an IRS representative! The agent confirmed that my previous tax preparer had placed a debt indicator on my account because of an outstanding loan, which was exactly why I was getting denied for advances elsewhere. She walked me through exactly what to do - I needed to contact the original preparer to resolve the loan situation first before trying to get advances elsewhere. This saved me from making a huge mistake - I was about to try filing a second return! Definitely worth it just for the peace of mind of speaking to the actual IRS.

Nobody's mentioned this yet, but you need to check if you signed an agreement with Jackson Hewitt regarding that Christmas loan. Most of those holiday loan/advance programs require you to sign something promising to file your taxes with them. If you did sign that and then filed elsewhere, you might be in breach of contract. It's not an IRS issue directly, but Jackson Hewitt could potentially come after you for the loan amount plus fees if you were supposed to file with them. They usually recoup those Christmas loans directly from your refund when you file with them.

One thing to consider is timing. If you already filed with the other company, when did you do it? If it was very recent (like within the last 24-48 hours), the return might not have been accepted by the IRS yet, especially if you filed during the busy first weeks of tax season. You could contact the company you filed with and ask if the return has been submitted and accepted yet. If it hasn't been fully processed, you might be able to cancel it and go with Jackson Hewitt instead.

I'd strongly recommend getting clarity on your loan agreement with Jackson Hewitt before making any decisions. Like others have mentioned, those Christmas loan agreements often include specific requirements about where you file your taxes. Here's what I'd do in your situation: 1. Call Jackson Hewitt immediately and request a copy of your loan agreement. Don't mention filing elsewhere yet - just say you need to review the terms. 2. Contact the company you filed with and ask if your return has been submitted to the IRS yet. If not, you might have options. 3. Whatever you do, DO NOT file twice. This will create major headaches with the IRS and could delay your refund for months. The refund advance denial is likely because Jackson Hewitt placed a "debt indicator" on your SSN when you took the Christmas loan. This is standard practice to protect their loan investment. If you're really strapped for cash, remember that your regular refund will still come through - it just won't be as fast as an advance. The IRS is processing returns pretty quickly this year, so you might only be waiting an extra 1-2 weeks compared to getting an advance. Don't panic - this situation is fixable, but you need to handle it carefully to avoid bigger problems.