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                                                                 EXHIBIT (10)(a)
H&R Block, Inc.                  Thomas M. Bloch
4410 Main Street                 President and
Kansas City, Missouri 64111      Chief Executive Officer
(816) 932-8422


                                 May 10, 1995


Mr. William P. Anderson
Senior Vice President and
Chief Financial Officer
H&R Block, Inc.
4410 Main Street
Kansas City, Missouri  64111

Dear Bill:

  As a member of the senior management teams of H&R Block, Inc., Block
Financial Corporation and Legal Knowledge Systems, Inc., you have been selected
to participate in a special management incentive program which, if the
conditions specified herein are satisfied, can result in a fully competitive
cash incentive award.  Your participation in this program is separate from, and
does not preclude, any participation by you in any traditional Management
Incentive Plan for fiscal year 1996 to hereafter be considered by the Company's
Board of Directors.

  An Incentive Award of $75,000.00 (the "Incentive Award") has been established
for you under this special program.  If you satisfy both of the requirements
specified below for the payment of such Incentive Award, it will be paid to you
on or before January 10, 1996.  If you would like all or any portion of such
award deferred pursuant to the H&R Block Deferred Compensation Plan for
Executives, you will need to complete a deferral election form pertaining to
such "bonus" during the enrollment period for the DCP in the fall of 1995.

  One hundred percent (100%) of the amount of your Incentive Award ($75,000.00)
is related to the actual performance of Block Financial Corporation and Legal
Knowledge Systems, Inc. for the period between May 1, 1995, and November 30,
1995 (the "Incentive Period"), in comparison to the budgeted performance of
such corporations during such Incentive Period.  If (i) the actual pretax loss
of Block Financial Corporation ("BFC") and Legal Knowledge Systems, Inc.
("LKS") for the Incentive Period, on a consolidated basis, is less than or
equal to the budgeted pretax loss of BFC and LKS for such Incentive Period, on
a consolidated basis (or there are actual consolidated pretax earnings for BFC
and LKS for the Incentive Period), and (ii) you are continuously employed by
HRB Management, Inc. between May 1, 1995, and December 29, 1995, inclusive,
you will be entitled to payment of the Incentive Award.
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Letter to William P. Anderson
May 10, 1995
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  The entire amount of the Incentive Award shall be forfeited if (i) the actual
consolidated pretax loss of BFC and LKS for the Incentive Period is not less
than or equal to the budgeted consolidated pretax loss for BFC and LKS for the
Incentive Period, or (ii)  you are not continuously employed by HRB Management,
Inc. between May 1, 1995, and December 29, 1995, inclusive, provided that, this
continuous employment provision (and the continuous employment condition set
forth in the paragraph immediately preceding this paragraph) shall not apply if
and only if such employment ceases on or before December 29, 1995, due to its
termination by HRB Management, Inc. without cause (as determined by the
Compensation Committee of the Board of Directors of H&R Block, Inc.).

  For purposes of this program, the budgeted consolidated pretax loss of BFC
and LKS for the Incentive Period shall be the approved budgeted pretax loss of
BFC combined with the approved budgeted pretax loss of LKS for such Incentive
Period.

  As part of the senior management teams of H&R Block, Inc., Block Financial
Corporation and Legal Knowledge Systems, Inc., you play a vital role in the
overall success of the Company.  Your accomplishment of the requisites for the
payment of the Incentive Award will provide not only a financial reward to you,
but also substantive business results for the Company.  I am confident that you
will use your best efforts to ensure that this program proves to be beneficial
to both you and the Company.


Sincerely,

/s/ Thomas M. Bloch


Thomas M. Bloch