All Things Tax

Posts: 1
Registered: ‎12-29-2013
Accepted Solution

what is a RAC loan?

Associate (Council Member)
Posts: 1,520
Registered: ‎12-13-2013

Re: what is a RAC loan?

Hello noey, and welcome to The Community.

RAC stands for "Refund Anticipation Check" and it is not a loan at all. The main purpose of a RAC is to be able to utilize our tax preparation and filing services, and rather than having to pay preparation fees upfront, this option allows all the fees to be withheld from your tax refund. Basically how it works is a "refund account" is opened for you at H&R Block Bank and when the IRS processes your tax return and releases your refund, it gets directly deposited into this account. After your account is funded, the fees are withheld and the remainder is released to you either on an Emerald Card we provide you with, direct deposit into your own bank account, or a check can be printed in the office you visited and you can pick it up.

I hope this helps. Good luck to you.
Tax Professional (Retired)