TurboTax charges up to $119 for federal tax filing ($49 per state) for its highest “do-it-yourself tax” package, while H&R Block charges up to $114.99 for federal tax filing ($44.99 per state) for a similar package. H&R Block walks you through an interview process, much like TurboTax, but it’s a little bit cheaper. H&R Block provides an easy-to-use platform, similar to meeting with a tax preparer. Those were the only offers to upgrade I encountered while preparing the sample returns. You’re also offered the chance to upgrade to have a tax pro review and sign your return for an additional fee before filing. Allow free e-filing of an amended return, if needed.Provide live, unlimited tech support from a product specialist via chat or phone (product support specialists help with login and technical issues you might have while filing - they typically don’t provide tax advice).Store tax documents digitally on H&R Block’s servers for up to six years (otherwise, they’re only available online until November).And after the accuracy review portion of the free online filing, H&R Block offers a chance to upgrade to “Plus” for an additional fee, which would: If you try to add income or tax breaks not allowed by the version you’re in, the software will prompt you to upgrade. The service adds as much as $85 to the cost of a package.Ĭompared to TurboTax, which subjects users to near-constant urging to upgrade to a more expensive package or purchase add-on features, H&R Block’s upselling is relatively mild. The company’s Online Assist provides unlimited on-demand help from a tax pro via chat or video and the ability to screen share with a tax pro. If you get stuck along the way, you can click the “Get expert help” button in the top right-hand corner - just keep in mind that extra help will cost you. Users can click the embedded links to get tips for answering on-screen questions. There are also plenty of FAQs sprinkled throughout, so if you aren’t sure how to answer a question or why it matters, clicking the embedded link brings up a helpful tip on the right side of the screen. A banner on the left-hand side of the screen keeps a running tally of the estimated federal and state refund or amount due throughout the process.Ī banner on the left side of the screen keeps a running tally of the federal and state tax refund or balance due. Such a problem could really derail an inexperienced DIYer and potentially even lead to significantly overpaying their tax return if they didn’t understand what was going on and reach out to tech support-or pay extra to get on-demand help from an H&R Block tax pro.ĭespite this issue, I found H&R Block’s interface to be pretty user-friendly. After spending several minutes going back through the interview forms, I couldn’t figure out how to fix the issue without deleting everything and starting over, so I gave up. On the Alabama state return, the software doubled their income, showing they had $260,000 of taxable income rather than $130,000 and owed taxes and an underpayment penalty. I did run into one stumbling block while preparing the sample return for a married couple filing jointly. Single taxpayer, no dependents, self-employment income, federal and state estimated tax payments: 30 minutes.Married couple filing jointly, one dependent, two W-2s, child tax credit and child and dependent care credit: 30 minutes.Single taxpayer, no dependents, W-2 income and the student loan interest deduction: 23 minutes. Here’s how long it took me to get from start to filing for each one: The software walks you through the tax preparation and filing process with a series of interview-style questions.Īs part of my review, I went through the process of preparing three sample returns. Preparing your tax return online with H&R Block is similar to sitting down with a tax preparer. If you want to pay your filing fee out of your federal refund, H&R Block charges an extra $39 processing fee for the convenience. While preparing your return, if you try to add income, deductions or tax credits not allowed by the version you’re in, the software will prompt you to upgrade and tell you how much the more expensive package costs. If you’re not sure which package you need, you can always start with the free option.
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