System providing funds to electronic tax filers prior to receipt of refund

• US 7,010,507 B1
• Filed: 10/04/1995
• Issued: 03/07/2006
• Est. Priority Date: 10/04/1995
• Status: Expired due to Fees

• Current Assignee: H&R Block Tax Services LLC (H&R Block, Inc.)
• Original Assignee: Block Financial Corporation (H&R Block, Inc.)
• Inventors: Anderson, William P., French, John M.
• Primary Examiner(s): Poinvil, Frantzy
• Application Number:
  US08/539,110
• Time in Patent Office: 3,807 Days
• Field of Search: 395/231, 395/201, 395/230, 705 31- 44, 705/1, 705/30, 235/380
• US Class Current: 705/31
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/123 Tax preparation or submission

Abstract

Electronic data processing system which enables tax filers who electronically file tax returns to early use of their refund amount through an increased credit card credit limit with the tax payers credit card account.

Claims

1. A method for increasing a credit card credit limit for a taxpayer credit card account based on an anticipated tax refund amount, comprising the steps of:

electronically obtaining taxpayer information comprising personal information, tax information, and credit card information, said taxpayer information obtained by an electronic data processing system;

creating electronic tax return files from said taxpayer information through the input of said personal information, credit card information, and taxpayer information;

transmitting said electronic tax return files to a relevant taxing authority;

transmitting from said electronic data processing system to a credit card issuer an anticipated tax refund amount;

increasing said credit card credit limit for said taxpayer'"'"'s credit card account by said credit card issuer, based on said anticipated tax refund amount, wherein said increase is made prior to tax return processing;

creating a deposit/payment account designated to receive by electronic funds transfer said tax refund from said relevant taxing authority;

transferring said tax refund from said relevant taxing authority to said deposit/payment account;

applying transaction fees to said taxpayer'"'"'s account in accordance with an agreement for said taxpayer'"'"'s account;

applying a payment based on said anticipated tax refund amount to said taxpayer'"'"'s credit card account by making funds in said deposit/payment account available to said credit card issuer, and;

decreasing said credit card credit limit based on said anticipated tax refund amount after said payment is applied.

2. The method of claim 1 further comprising the step of validating said taxpayer information and credit card information.

3. A system for increasing a credit card limit based on an anticipated tax refund for a taxpayer comprising:

an authorized financial institution deposit/payment account adapted to receive tax return data from a tax authority, said account maintained at a first computer;

an electronic data processing system for preparing and submitting tax return data by inputting personal, credit card, and tax data to said electronic data processing system from a plurality of taxpayers to a tax authority;

a first electronic record at said electronic data processing system comprising credit card data including an identifier and a credit limit for said taxpayer;

a second electronic record at said electronic data processing system comprising tax return data from said taxpayer, said tax return data including an anticipated refund amount and said credit card identifier for said taxpayer and said tax return data from said taxpayer entered into said electronic data processing system;

a first communication link for transmitting said anticipated refund amount and said credit card identifier from said electronic data processing system to a second computer for said credit card data;

a third electronic record comprising an increased credit limit by a credit card issuer associated with said credit card data, said increased credit limit based on said anticipated refund amount;

a second communication link for transmitting a refund from said tax authority to said authorized financial institution account; and

a third communication link for transmitting said refund from said authorized financial institution deposit/payment account to said second computer;

a fourth electronic record comprising an account balance associated with said credit card data, said anticipated refund amount applied as a payment to said account balance; and

a fifth electronic record comprising a decreased credit limit associated with said credit card data, said decreased credit limit based on said anticipated refund amount and applied after said payment to said account balance.

4. The system of claim 3 further comprising a software program means at said electronic processing system for validating said credit card data and tax return data.

5. The system of claim 3 further comprising a means for charging processing fees to the credit card account and for transmitting said fees by electronic funds transfer.

6. A method for increasing a credit card limit for a taxpayer'"'"'s credit card account, comprising the steps of:

preparing electronic tax return data comprising personal, credit card, and tax data for said taxpayer, said electronic tax return data inserted into tax preparation software operating on an electronic data processing system;

determining an anticipated refund amount based on said electronic taxpayer tax return data;

transmitting from said electronic data processing system to a credit card issuer computer system said anticipated refund amount;

increasing said credit card limit for said taxpayer'"'"'s credit card account by said credit card issuer based on said anticipated refund amount;

creating a deposit/payment account at an authorized financial institution, said deposit/payment account designated to receive electronic fund transfer refunds from a taxing authority;

transferring said electronic tax return data to said taxing authority;

receiving from said taxing authority at said deposit/payment account at said authorized financial institution said taxpayer'"'"'s refund; and

applying a payment in the amount of said anticipated refund to said taxpayer'"'"'s credit card account by making funds in said deposit/payment account available to said credit card issuer; and

reducing said credit card limit for said taxpayer'"'"'s credit card account based on said anticipated refund amount after said payment is applied.

7. The method of claim 6 wherein the step of increasing said credit card limit based on said anticipated refund amount comprises the step of increasing said credit card limit by less than said anticipated refund amount.

8. An electronic data processing system for the authorization and faster use of tax refund amounts by way of a tax filer'"'"'s credit card account, comprising:

an electronic data processing means, wherein said processing means executes programmed arithmetic and logical processes and stores data;

an input means for inputting personal, credit card, and tax data to said electronic data processing means;

a program means executable by said electronic data processing means for processing inputted tax data from said input means and for creating electronic tax return data files required by the relevant taxing authority;

a program means executable by said electronic data processing means for processing credit card data inputted from said input means, for creating deposit/payment account files for said tax filer in an authorized financial institution, and for transmitting said tax filer'"'"'s account data to said authorized financial institution;

a program means executable by said electronic data processing means for processing said tax return data files and said deposit/payment account files and for transmitting said tax filer'"'"'s tax return data to said relevant taxing authority and for authorizing receipt by said authorized financial institution of electronic funds data from said relevant taxing authority;

a program means executable by said electronic data processing system for processing said tax return files and authorizing an increase of said tax filer'"'"'s credit card credit limit by said authorized financial institution, based on said anticipated refund amount, wherein said increase may be utilized prior to tax return processing and tax refund payment by said tax collecting authority; and

a program means controlled by said authorized financial institution for decreasing said tax filer'"'"'s credit card credit limit by said anticipated refund amount, and for applying a payment to said tax filer'"'"'s credit card account in the amount of said refund upon the receipt of said refund amount from said taxing authority.

9. The electronic data processing system of claim 8 further comprising, a program means for validating said credit card and tax data.

10. The electronic data processing system of claim 8 further comprising, a means for charging processing fees to the credit card account and for transmitting said fees by electronic funds transfer.

11. The electronic data processing system of claim 8 further comprising,

a second electronic data processing means controlled by said relevant taxing authority, wherein said processing means executes programmed arithmetic and logical processes and stores data;

and

a third electronic data processing means controlled by said authorized financial institution, wherein said processing means executes programmed arithmetic and logical processes and stores data.

12. A method for the authorization and faster use of tax refund amounts by way of a tax filer'"'"'s credit card account, comprising:

inputting personal, tax, and credit card account information to an electronic data processing system;

creating electronic tax return files from said inputted tax data;

processing said electronic tax return files to determine an anticipated refund amount;

transmitting said electronic tax data files to a relevant taxing authority;

authorizing an increase of a credit card credit limit for said tax filer'"'"'s credit card account by transmitting said anticipated refund amount to a credit card issuer wherein said increase of said credit card credit limit is made prior to tax return processing and payment of a tax refund by said relevant tax authority;

creating a deposit/payment account designated to receive by electronic funds transfer said tax refund from said relevant taxing authority;

transferring said tax refund from said relevant taxing authority to said deposit/payment account;

applying a payment in the amount of said refund to said tax filer'"'"'s credit card account upon the receipt of said refund amount from said relevant taxing authority;

reducing said tax filer'"'"'s credit card limit by said refund amount after said payment is applied; and

applying transaction fees associated with said crediting to said tax filer'"'"'s account in accordance with an agreement for said tax filer'"'"'s account.

13. The method for the authorization and faster use of tax refund amounts of claim 12 further comprising the step of processing said tax return data files to validate the personal, tax, and credit card account information.