H&R BLOCK INC — Director's Dealing 2006

Jul 5, 2006

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: H&R BLOCK INC (HRB)
CIK: 0000012659
Period of Report: 2006-06-30

Reporting Person: Gokey Timothy C (President, U.S. Tax Services)

Non-Derivative Transactions

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2006-06-30	Common Stock, without par value	F	4460	$23.9400	Disposed	35540.0000	Direct
2006-06-30	Common Stock, without par value	J	15000	$23.8600	Acquired	50540.0000	Direct

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2006-06-30	Call Option to Purchase	$23.8600	A	125000	Acquired	2016-06-30	Common Stock, without par value (125000)	Direct

Holdings (Derivative)

Security	Exercise Price	Expiration	Underlying	Shares	Ownership
Call Option to Purchase	$24.2350	2014-06-28	Common Stock, without par value (100000)	100000	Direct
Call Option to Purchase	$29.1750	2015-06-30	Common Stock, without par value (100000)	100000	Direct

Footnotes

F1: Restricted shares of Common Stock granted under the H&R Block, Inc. 2003 Long-Term Executive Compensation Plan. The shares are restricted for three years from the date of grant, at which time they will vest subject to the satisfaction of certain performance criteria.

F2: The option vests in three equal annual installments beginning on the first anniversary of the date of grant.