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  • taxes

    I am new GCHolder as from Jan 03 living perm.with family now in US.
    My question is: do I still have to file taxes even though I am not earning anything yet?
    Is this quite simply or what?

  • #2
    I am new GCHolder as from Jan 03 living perm.with family now in US.
    My question is: do I still have to file taxes even though I am not earning anything yet?
    Is this quite simply or what?


    • #3
      Yes, you should.

      Go to for all tax related questions, publications, forms, etc.


      • #4
        You must file Income Tax otherwise at the time of citizenship application, you will have problem. If you have dependents you may get some refund like child credits etc. Check HR Block.


        • #5

          Rebecca Byrne
          H&R Block Alters Refund Loan Structure After 'Kickback' Lawsuits
          By Rebecca Byrne
          Staff Reporter
          01/08/2003 02:59 PM EST

          Despite a barrage of criticism, H&R Block (HRB:NYSE - news - commentary) won't stop offering rapid tax refunds to clients anytime soon. It's simply too lucrative. But amid a slew of lawsuits alleging that the loans were a source of "kickback" revenue for the company, Block has decided to change the way it gets paid for them.

          That adjustment will cut revenue by some $50 million this year, according to a press release issued Wednesday.

          Kansas City-based H&R Block said it will now receive direct payments from Household International (HI:NYSE - news - commentary) -- the bank that makes the loans -- over the course of the tax season. The payments are fixed, although subject to some adjustments.

          Previously, the company had been receiving a cut from each loan its customers received, according to Rachel Barnard, an analyst at Morningstar. "The series of payments are probably related to the volume of loans that [Block] throws their way," she said.

          Block also noted that it would no longer be able to participate in the risk and the benefit of the loans as it had done before.

          The tax-preparation firm offers its clients high-interest loans secured by expected tax refunds. In doing so, it receives fees from Household. Numerous states have sued H&R Block, charging that the firm did not disclose these kickbacks. But last month, the firm settled a class action lawsuit in Texas, paving the way for a 38% run-up in its share price.

          While Block's decision to receive direct payments will eat into revenue, earnings guidance remained unchanged. On Tuesday, Block said it expects a profit of between $2.90 to $3.10 a share for the 2003 fiscal year ending in April.

          That range is below the $3.21 a share analysts had expected, but Block said Wednesday that its own earnings guidance is actually in line with the consensus estimate "when factoring differing treatments of nondisclosure items."

          Analysts were generally unconcerned about the new fee model, noting that Block is still getting paid for the refund anticipation loans (RALs), which contribute heavily to the firm's overall profitability.

          In fiscal 2001, Block received about 18% of its profits from these loans, and in 2002, RAL revenue jumped 20% from a year earlier. Profits on the loans weren't reported last year.

          Still, analysts remain concerned about the possibility of more lawsuits.

          "It's my contention that Block is just going to keep getting sued. By settling the Texas case, it's opened up the floodgates for more lawsuits," Barnard said.

          In a new development, Block said a Maryland judge stayed a class action case there until a Chicago trial court has ruled on the fairness of a pending nationwide settlement in another RAL class action case and all appeals were completed. The trial in the Maryland case had been scheduled to begin Jan. 7.

          Block Chief Executive Mark Ernst has said he is confident that all litigation would be resolved soon, pending court approval of the nationwide settlement.

          But if the court doesn't approve that settlement, the company would be forced to renegotiate or litigate cases separately in eight states.

          "As long as they're in the business of making high-interest loans, they're going to be vulnerable. It's just a natural target, and they're a big firm with deep pockets," Barnard said. "It's sort of akin to the cigarette companies."

          Still, Barnard added that the effect of such lawsuits shouldn't be too damaging over the long term. So far, Block has been able to settle lawsuits for relatively small amounts. In Texas, for example, the firm settled for just $41.7 million.

          Block traded down 0.41% to $41.51 Wednesday. But Barnard, who has a four-star rating on the stock, believes the shares are worth about $48.

          "I've been pretty conservative about assuming growth rates and tried to factor in what could happen if they have a lot of little lawsuits," she said. "The big caveat is if they get a big lawsuit, then all bets are off."