Why Is H&R Block’s Routing Number on My Tax Return?

Seeing H&R Block’s routing number on your tax return instead of your own can be confusing. Many taxpayers expect their refund to go directly into their personal bank account, so noticing a different routing number raises concerns about where the money is going.

This usually happens due to how tax preparation services handle refunds, especially when additional financial products are involved. Understanding this process helps taxpayers know what to expect.

Routing Number Basics

A routing number is a nine-digit code that directs financial transactions. Banks, credit unions, and other institutions use these numbers to process electronic payments, including tax refunds and direct deposits. Each institution has a unique routing number to ensure money moves correctly through the banking system.

For tax refunds, the IRS requires both a routing number and an account number. If the routing number on a tax return does not match a personal bank’s, the refund is likely being processed through an intermediary.

Third-Party Refund Transfer Arrangements

When taxpayers choose to have tax preparation fees deducted from their refund instead of paying upfront, tax preparation companies often use a temporary bank account to handle the transaction. This process, called a Refund Transfer, involves a third-party financial institution receiving the IRS deposit first. The bank then deducts applicable fees before sending the remaining balance to the taxpayer’s account.

H&R Block and similar services partner with banks that specialize in these transfers. When a Refund Transfer is used, the taxpayer’s refund is routed to one of these partner banks, which explains why the routing number on the tax return differs from a personal bank’s. The account number associated with the refund is also temporary and exists only to process the transaction before disbursing the funds.

Some taxpayers unknowingly enroll in this service when selecting options like refund advances or other financial products during tax preparation. These services often include additional fees, which are deducted before the final deposit. While this process does not delay the refund, it can cause confusion when checking IRS refund status tools, as the deposit may appear to be sent to an unfamiliar account.

Verifying Deposit Details

To ensure tax refunds are deposited correctly, taxpayers should review the financial information submitted on their return. Checking IRS Form 1040, specifically the direct deposit section, confirms the listed account and routing numbers. If these numbers differ from personal banking details, reviewing tax preparation documents can clarify whether a refund transfer service was used.

The IRS’s “Where’s My Refund?” tool tracks deposit progress. If the status updates to “Refund Sent,” taxpayers should compare the deposit date with their bank’s transaction history. If the funds do not appear as expected, checking the deposit details with the issuing bank—often listed on tax preparer documentation—can provide insight into processing times and potential delays.

For those who opted to receive their refund on a prepaid debit card or through a financial product offered by a tax preparation service, the deposit may not go directly to a traditional checking or savings account. Instead, the funds may be processed through a financial institution managing these alternative refund methods. Reviewing the terms of these products helps taxpayers understand where their money is held and how to access it.

Steps if an Incorrect Routing Number Appears

If an unexpected routing number appears on a tax return, the first step is determining whether the IRS has already processed the refund. If the status shows “Refund Sent” but the deposit has not arrived within 21 days, contacting the financial institution associated with the routing number can clarify whether the funds are temporarily held or require additional verification.

If the listed routing number does not belong to an intermediary bank used by a tax preparation service and is entirely unfamiliar, immediate action is necessary. Filing IRS Form 3911, Taxpayer Statement Regarding Refund, initiates a refund trace, allowing the IRS to investigate whether the funds were misdirected. If incorrect information was provided on the return, the IRS may issue a replacement check by mail, though this process can take six to eight weeks.

If the refund was deposited into an unintended account, the IRS cannot retrieve the funds. Taxpayers must contact the receiving bank to request a reversal. Some financial institutions cooperate in returning misdirected funds, while others may require additional documentation or refuse to release the money without the account holder’s consent.