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As of June 2018, H&R Block is the most popular tax preparer in the US. It has a $2 billion market cap and operates throughout all 50 states. While it’s not likely to be toppled anytime soon, competition is heating up with other companies like TurboTax coming onto the scene.
H&R Block is an online tax preparation service that helps you file your own tax returns online or file with a tax professional in an office or virtually. Its features include W-2 import, Transfer of Refunds, a tax calculator, a tax preparation checklist, and multiple guarantees. You can file simple federal and state returns for free or choose from its paid packages with prices that start at $49.99 per federal return, plus $36.99 per state.
What We Recommend H&R Block For
H&R Block is an ideal choice if you are looking for inexpensive packages and bundles to file your individual and business taxes. It gives you the option to get started online and then switch to in-person filing if needed. Its paid tiers cater to different tax situations, and it’s a good choice if you want to try its unique features, multiple guarantees, and on-demand help from a tax professional.
H&R Block Is Especially Good For
- Businesses looking for an inexpensive way to file corporate and partnership returns: With H&R Block’s Software for the desktop, you can file partnership and C corporation and S corporation federal tax returns for only $89.95.
- Filers seeking to bundle individual and business returns: Whether your business is a partnership or corporation, the Premium & Business software includes everything you need to file both your personal and business tax returns.
- For taxpayers who desire Software for the desktop: You may prepare as many returns as you like and e-file up to five of them for free using its desktop program.
- Individuals and businesses who need the help of a tax professional: H&R Block offers an assisted service, where a tax professional will file for you.
H&R Block Is Not a Good Fit For
- Professional tax preparers: If you are a tax professional working for multiple clients, H&R Block isn’t for you as you cannot sign as a paid preparer.
- Users of QuickBooks Self-Employed: If you maintain your books in QuickBooks Self-Employed, you may buy TurboTax as a bundle and have your company revenue and expenditures transferred immediately.
We looked at a number of options in this guide and restricted our suggestions based on the cost of completing the average bundle of returns needed by most company owners.
H&R Block Pricing
H&R Block’s online software includes a free edition for simple returns as well as three paid packages with prices that range from $49.99 to $109.99 per federal return, plus $36.99 per state. If you need the help of a tax pro, its Assist through the internet version starts at $69.99 per federal return. If you prefer Software for the desktop, you can choose from four tiers with prices ranging from $29.95 to $89.95 for unlimited returns, although you may have to pay extra for e-filing additional returns.
Filing and preparing documents online
Renters, students, and W-2 workers should use the free plan. It covers Forms 1095 (A and B), 1098 (E and T), and 1099, and incorporates W-2 picture capture and quick import (B, DIV, INT, and R). Although you have access to the software’s help center, you do not have access to live customer service.
Deluxe
If you have mortgage interest, real estate taxes, or payments to a health savings account (HSA), this plan is for you. It includes all of the capabilities of the free version, as well as live phone and chat assistance and the company’s proprietary DeductionPro tool, which helps you maximize your contributions.
Premium
You’ll need the Premium edition if you’ve sold stocks, bonds, or other investments that need to be reported on Schedule D. Premium adds to the Deluxe capabilities by allowing you to claim rental income and deductions on Schedule E, as well as import costs from your favorite expense monitoring apps like Stride.
Self-Employed
If you own a company that reports on Schedule C, you should get this plan. It has all of the features of Premium plus the opportunity to claim all small company costs, including asset depreciation. This package also enables you to input your tax information straight from Uber if you’re an Uber driver.
Assist through the internet
Each online package includes an Assist through the internet version with live tax pro support, which gives you unlimited access to live tax experts with share-screen and on-demand chat or video. You can file your returns at an office or virtually.
Software for the desktop version
Basic
Basic is for you if you are an employee or a parent who needs uncomplicated federal filing. Drag-and-drop importation of prior-year returns, picture submissions, and free in-person audit help are all included.
State + Deluxe
If you’re an investor or a homeowner who wishes to maximize tax deductions, such as charity contributions and house mortgage interest, while still reporting investment income, this product is for you. Everything from the Basic plan is included in this plan as well.
Premium
Premium provides the tools you need to handle your taxes whether you’re a self-employed person, a freelancer, an independent contractor, or a landlord. If you have income reported on Form 1099-MISC or Form 1099-NEC, you are eligible for Premium.
Premium & Business
This plan is essential for small company owners. It allows you to prepare and submit partnership and limited liability company (LLC) tax returns (Form 1065), business and S-corporation tax returns (Forms 1120 and 1120S), nonprofit tax returns (Form 990), and estate and trust tax returns (Forms 1120 and 1120S). You may also create payroll forms (Forms W-2 and 1099) and employer forms (Forms W-2 and 1099). You may also prepare your own tax return using the Premium edition’s capabilities.
H&R Block Features
H&R Block offers some advanced features that are helpful for tackling difficult tax situations, depending on the version and package you choose. For instance, it offers W-2 Taking Photographs, multiple guarantees, and easy input from other tax programs. We have some of H&R Block’s main features detailed below.
Taking Photographs
Take a picture of your W-2 and then import it to H&R Block. This is much easier than entering all your W-2 information manually.
Guaranteed accuracy of 100 percent
H&R Block will refund any fees incurred to file a return that includes an error on its part, and it will refund you for any interest or penalties. It will also explain to you any notices received from the IRS.
Guaranteed Maximum Refund
If you get a bigger tax refund from another tax preparation software, H&R Block will refund your software cost. You may also use H&R Block software to amend your return for free. To qualify, your refund claim must be made within the calendar year in which it was prepared.
Assurance of Audit Support
In the case of an IRS audit, H&R Block offers free audit support to help you understand the process and how to respond to it. If you need a qualified H&R Block enrolled agent―a federally-authorized tax practitioner―to represent you before the IRS, you will need to purchase its Peace of Mind Extended Service Plan add-on.
Calculator for Tax Refunds
The online tax calculator may help you understand your current tax status and prepare for the future. Based on your answers to a few questions about your life, income, and spending, the calculator will calculate your filing status and taxable income.
App for mobile devices
H&R Block’s App for mobile device location, called MyBlock, lets you prep and file your returns anytime and anywhere. You can access and manage your Emerald card, credit score, and Tax Identity Shield membership. You can also get support from a tax pro through on-demand chat or video. MyBlock is available on Google Play and the App Store.
Transfer of Refunds
Pay your tax filing fees directly from your refund. H&R Block charges $39 for a federal Transfer of Refunds, but it’s free for states. If you wish to receive your remaining refund by check after making payments from your Transfer of Refunds account, you’ll need to pay an additional fee of $25. If you don’t sign up for Transfer of Refunds, you can receive your refund as a direct deposit or paper check free of charge. Of course, you’ll have to pay for your software from another source prior to filing.
Customer Service and Usability
While H&R’s Block’s user interface is not as simple as some other online programs like TaxSlayer, it is still seamless and easy to navigate. Every page includes clear instructions for the next steps, and you can skip some pages and go back to complete them later. To get started, you need to answer a series of questions about your life, income, deductions, and other information:
You can check the status of your refund and look up your tax history after you log in. You can also use the calculator right now to estimate your tax refund:
H&R Block’s tax history page.
There is an in-software help center including extensive online customer support, including a database of frequently asked questions (FAQs), blogs, and communities of experts. If you need unlimited live chat support and the ability to call and talk to a person, you will need to purchase a paid version. Finally, you can visit an H&R Block agent in any of its 12,000 offices.
Conclusion
H&R Block is a solid choice for individuals and business owners who want to save on their federal and state tax returns. Its free edition is a bit more expanded than most other programs, and its online versions come with multiple guarantees that will help you reduce your tax liabilities and increase your refund. It also gives you the option to talk to a live tax pro online, plus you can visit an agent at a desk in its brick-and-mortar office.
If you are looking to cut costs while still having the ability to talk to a real person, you should try H&R Block today.
