Buzz
Why should you decline? Transferring your tax refund to a gift card could lead you to spend it on unnecessary purchases rather than using the funds to eliminate debt, build an emergency fund, or save for future needs.
And it's true—gift card tax refunds have been around for a few years. As reported by
Yes, H&R Block has extended this bonus offer to encourage people to redirect their tax refunds for Amazon purchases, as Money.com has pointed out.
As tax season approaches with the April 15 deadline looming, H&R Block, which handles over 20 million returns annually, is offering a special deal to self-filers using their software. If you choose to receive all or part of your federal refund (anywhere from $100 to $9,000) as an Amazon gift card instead of cash, you’ll get an extra 4% added to your refund.
In other words, if you opt for a $2,800 refund, it will be bumped up to $2,912, but only if you're willing to spend it on...well, things.
While an additional 4% on your tax refund may seem enticing, keep in mind that the money isn’t truly yours to keep—you’re effectively handing it over to Amazon. Sure, you might buy clothes, groceries, or other necessary items with the gift card, but unless you’re balancing that out by contributing an equal amount towards debt, savings, or other financial goals, you're not really gaining long-term benefits.
So, think twice before accepting a gift card for your tax refund. If you need or want to use that refund for necessities like diapers or groceries, that’s fine, but avoid putting yourself in a situation where you’re only able to use your refund for purchases rather than strengthening your financial position.
