H&R Block Review 2024: Pros, Cons, Pricing, & Alternatives

Contemplating the forthcoming tax season and wondering if you can tackle your return independently or will require expert help? H&R Block presents a range of tax filing alternatives, catering to those who prefer a do-it-yourself approach and individuals seeking professional aid, either virtually or in person.

Let us present our evaluation of H&R Block's online software attributes, performance, and cost structure. This will enable you to determine whether using their services to file your taxes is viable.

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What Is H&R Block?

H&R Block, a prominent company specializing in tax preparation, provides various services to individuals and businesses. They offer precise and reliable tax preparation, streamlined filing processes, strategic tax planning, and assistance during audits.

With their offline and online presence, H&R Block caters to a wide range of needs by offering detailed guidance throughout the process. They aim to optimize deductions and credits while ensuring compliance with all relevant tax laws.

Moreover, they provide various financial products and services that make them a comprehensive solution for managing the intricacies of taxes and financial planning.

Who Should Use H&R Block Tax Software?

If you're looking to save money by skipping TurboTax, H&R Block offers a viable alternative that will feel familiar.

This year, H&R Block has made it easier to switch from TurboTax with introducing Direct Import. This helpful tool allows H&R Block users to transfer their TurboTax data simply by entering the phone number associated with their Intuit account.

While you may miss out on a slightly better user experience with TurboTax, H&R Block still provides an excellent free option that’s just as smooth. Their Free Online edition is suitable for students and adults with simple tax returns and offers a wider range of credits and tax forms than its competitors.

H&R Block also offers this option, which can be valuable for taxpayers who prefer meeting with a tax professional in person.

Similar to TurboTax, H&R Block charges customers for each state tax return filed. Therefore, if you’re filing multiple state returns, it may be worth exploring other alternatives.

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H&R Block’s Handy Features

If you're currently with another provider, H&R Block offers a convenient solution. They can transfer your previous year's tax information from an H&R Block or TurboTax file or even from a PDF of your return from any other provider.

• Automated import of tax documents: H&R Block enables you to import your W-2 directly from your employer, either through PDF upload or direct import if your payroll provider is affiliated with H&R Block. This feature eliminates the need for manual data entry from individual boxes. 

You can upload a photo of your W-2 for added convenience. Various types of 1099 forms can also be imported, and users of the Self-Employed version have the added benefit of directly importing their 1099-K or 1099-MISC from Uber if they hold a driver's account.

• Donation calculator: The Deluxe, Premium, and Self-Employed packages include DeductionPro integration, which helps calculate the deduction value for donated items such as clothing, household goods, and other objects.
• Cryptocurrency support: H&R Block's recent collaboration with CoinTracker addresses a significant challenge for cryptocurrency investors by eliminating the need for manual data entry. Users of the Premium and Self-Employed versions can seamlessly link their CoinTracker accounts to import their crypto transactions automatically.
• Platform mobility: As H&R Block's software operates online, users have the flexibility to access their accounts from various devices, allowing them to work on their tax returns intermittently. H&R Block offers a dedicated mobile app for further convenience.

>> File Your Taxes Online With H&R Block >>

H&R Block Pricing

Filing with H&R Block may cost less than TurboTax, but it can be more expensive compared to other well-known tax preparation services like TaxSlayer, TaxAct, or Cash App Taxes.

H&R Block provides four primary options for tax preparation and filing: self-service online packages, the choice to include Online Assist for extra guidance from an expert, full-service assistance from a tax preparer, and downloadable computer software.

Each of these categories has different pricing tiers based on the specific tax forms you require. Except for the computer software version, all options allow you to prepare your return at no cost. You only have to pay when it's time to file.

• Free Online: $0. This option supports various income sources such as W-2 income, unemployment income, interest and dividend income, retirement distributions, student loan interest deduction, tuition and fees deduction, child tax credit, and the earned income tax credit (EITC). While it doesn't allow for itemized deductions, this is standard among free versions offered by tax-prep software providers. Notably, H&R Block's free version includes student deductions, a feature not offered by others.
• Deluxe Online: $55. This package encompasses everything available in the free version, along with additional features such as the mortgage interest deduction and health savings accounts. It also enables users to itemize deductions.
• Premium Online: $85. Building upon the Deluxe version, this package includes support for rental property income and freelance/contractor income under $5,000. Users can import mileage and other expenses from commonly used tracking apps.
• Self-Employed Online: $115. Positioned as H&R Block's highest-tier online package, this option is tailored for self-employed individuals, including small business owners, partners, and contractors earning more than $5,000.

Extra Fees You Might Have to Pay With H&R Block

• You require state filing: If you live in one of most states mandating state income tax filings, you'll need to pay an additional $37 per state. You may need to file multiple state returns if you lived or worked in more than one state.
• You opt for Online Assist: This service, nearly identical to the aforementioned online filing options, allows you to chat instantly and share your screen with a tax expert. Pricing for this service starts at $70 and can go up to $195.
• You choose full-service preparation: With this option, you can delegate your tax documents to a professional, either in-person or virtually, who will handle the preparation and filing of your return. Prices for these services start at $89 for a federal return.
• You pay H&R Block from your refund: If you anticipate a tax refund, H&R Block offers the option to deduct part of it to cover its tax prep services. While this may seem more convenient than using a debit or credit card, be aware that a $39 processing fee applies.

>> Check Out the Best Pricing for H&R Block >>

Is H&R Block Safe to Use?

H&R Block's range of websites provides various levels of security, incorporating standard encryption technology for web browsing and multi-factor authentication. Your data is constantly safeguarded and supervised around the clock. 

The company also enlists the expertise of external security specialists to conduct audits and assess potential risks. Their data centers, networks, and servers are situated in secure facilities.

Whenever you input personal or financial details online, as is necessary when preparing and submitting your tax returns, PCMag suggests implementing additional safety measures. This includes only using a trusted network such as your home Wi-Fi network.

Exceptional Help

H&R Block has been providing taxpayers with exceptional help for numerous years. The approach they take is proactive, setting them apart from TaxAct, which offers decent but disjointed help tools.

H&R Block centralizes its guidance in a vertical pane located on the right-hand side of the screen. Their language is straightforward and easy to understand, with minimal suggestions to consult IRS instructions, a crucial factor.

In particular, H&R Block introduces topics on various pages by explaining what will be discussed. Clickable links are available for related explanations as well.

What sets them apart is that their Help pane always displays context-sensitive help for the current page being viewed, if applicable. No other online tax service offers this feature; competitors usually require users to click on a link to access contextual help in their programs.

H&R Block has introduced an additional level of assistance for this year. AI Tax Assist engages in conversation with you instead of simply presenting a list of search results powered by an artificial intelligence engine.

During testing, it performed well, but it’s not significantly superior to the website's standard help search tool. The standard tool provides links to relevant pages on the site, and answers frequently asked questions that are typically applicable.

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Excellent Mobile Apps

The tax preparation capabilities of the Android and iOS mobile apps from H&R Block are widely respected. These apps provide a user-friendly interface and effortless navigation tools that closely resemble the desktop version. All features, including those specifically for self-employment, are present and operate seamlessly.

Both standard help options and AI Tax Assist are accessible on the mobile platform, delivering effective help. It's important to note that any delays in responsiveness caused by device performance should not be attributed to H&R Block's app design.

How Does H&R Block Work?

While H&R Block is widely known for its physical offices across the United States, the company also provides online filing options and downloadable software. If you opt for an online package, you can use their mobile app on Android and iOS devices to handle your tax preparation.

H&R Block strives to cater to a broad range of tax filers by offering a modern, user-friendly interface that’s easy to navigate. Similar to other tax-preparation services, its platform guides users through a series of inquiries regarding their household income, potential deductions, and available tax credits.

In addition to answering these questions, it’s crucial to input information related to your employer, additional sources of income, and any relevant 1099s or W-2 forms that may arrive in your physical mailbox or email inbox.

Suppose you find yourself wanting to avoid making errors on your taxes or overlooking potential deductions amidst the sea of forms required for filing taxes correctly. In that case, H&R Block offers an option to connect you with one of their network professionals for an extra fee.

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H&R Block Alternatives

TurboTax

Intuit TurboTax stands out as our top choice for online tax software for small businesses. Its user-friendly interface, vast collection of deductions and credits, and specialized startup support make it the ideal solution. Regardless of the size or type of your business, TurboTax offers an easy and comprehensive experience. 

While it may be pricier than other tax software options, its benefits outweigh the cost. For small business owners specifically, we recommend either the TurboTax Self-Employed online package or the TurboTax Business application within Intuit's range of services.

>> File Your Taxes Online With Intuit TurboTax >>

TaxSlayer 

TaxSlayer stands out as an excellent choice for small business filers due to its ability to handle complex returns at a competitive price compared to other major players. With TaxSlayer, you gain access to a priority phone line, reliable customer service, and a user-friendly platform that simplifies the tax filing process.

Moreover, TaxSlayer offers the flexibility for you to personalize the level of assistance you receive. If you prefer a guided approach, their interview option will lead you through each step methodically, ensuring quick and accurate filing. 

On the other hand, if you're confident in your knowledge and don't require extensive guidance, TaxSlayer allows direct navigation to specific tax forms where you can input your income and deductions efficiently.

This alternative route expedites the process if you're familiar with what information is required. By offering multiple options tailored to individual needs, TaxSlayer empowers users with choices when it comes to managing their taxes effectively.

>> File Your Taxes Online With TaxSlayer >>

H&R Block Frequently Asked Questions

Can I File My Taxes for Free With H&R Block?

Certainly, but there are certain criteria that need to be met. Free federal and state filing with H&R Block is available only for taxpayers who have uncomplicated returns. This typically includes individuals with W-2 income, unemployment benefits, those claiming the standard deduction, as well as potentially qualifying for the earned income tax credit and child tax credit.

Does H&R Block Import My W-2 or 1099?

If your employer or financial institution is involved, you have the option to bring in an electronic version of your W-2 or 1099 form directly into H&R Block. As per H&R Block, around 70 million W-2s can be imported. 

However, even if you cannot import your W-2, there are alternative methods, such as uploading a PDF document, taking a photo with your phone and uploading it online or through the mobile app, or manually entering the information.

What Is the H&R Block Emerald Card?

The Emerald Card functions as a prepaid debit card, catering specifically to H&R Block customers without bank accounts. It allows them to conveniently receive their tax refunds directly onto the card and subsequently use it for bill payments, purchases, or even cash withdrawals from ATMs.

However, be cautious of the associated fees. The issuer imposes a $4.95 charge whenever you reload your card, along with an additional $3 fee for ATM cash withdrawals. If you have yet to execute any transactions using the card within 60 days, a $4.95 penalty will be applied. 

Furthermore, if you withdraw funds over the counter at a financial institution instead of an ATM, there will be an additional charge of $35.

By remaining aware of these fees and making informed choices about how to use the Emerald Card's features and services, you can optimize its convenience while minimizing expenses.

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Bottom Line

H&R Block caters to a wide range of individuals, whether you prefer to file your taxes online independently, seek expert guidance, or delegate the task to a professional. Although their tax software may have a lower price than the ones available in the market, the exceptional user experience they provide justifies its higher cost.

A notable feature offered by H&R Block is its AI Tax Assist service, which intuitively assists paying clients throughout the tax filing process. Besides these benefits, H&R Block offers various helpful services for taxpayers, such as two mobile applications, tax calculators, and different options for receiving tax refunds.

>> File Your Taxes Online With H&R Block >>

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