H&R Block vs. TurboTax

The start of a new year means it’s time to file your federal tax return. Many people stress about filing taxes, but there are a number of tax filing services to make the process easier. Two of the most well-known services are H&R Block and TurboTax. In fact, they both provide information along the way so you understand what you’re doing and they offer affordable filing options. This makes them both viable tax filing options, though which is right for you will vary based on your needs.

If you have questions about how taxes fit into your financial picture, consider working with a financial advisor.

A Quick Look at H&R Block

H&R Block has provided consumer tax filing services since 1955. It’s become one of the most popular filing services since then because it combines simple tools and helpful guidance. That’s useful whether you’ve never filed taxes or whether you’ve been filing for decades. Of course, tools and guidance come at a price. H&R Block currently offers four online filing options. You can see the choices and their prices and features below. ¹

H&R Block Filing Options

The cheapest filing option is the free option. It lets you file your federal return and all state returns for free. The catch is that this option works for just basic returns. The major forms that it supports are the 1040, Schedule EIC for the earned income tax credit and Schedule 8812 for the Additional Child Tax Credit. You can also use this form with some other common tax forms: Form 1099 (B, DIV, INT and R), 1098 (E and T) and 1095 (A and B). Filing other forms will require you to upgrade to a paid plan.

Paid plans range from $35 to $85 for federal filing. All state filing costs $37 per state with the paid plans. When it comes to these paid plans, most filers can get away with the Deluxe option, which costs $35 and includes software for maximizing tax deductions. If you do freelance work or own a small business, you’ll likely need to upgrade to the Self-Employed plan, which costs $85 at a base level.

One standout feature for H&R Block is its physical location. If you don’t want to file your return online, you can stop by one of its 10,000 tax offices in the U.S. The tax professionals there will be able to walk you through your filing.

Filing in person starts at $89 for federal returns. Alternatively, you can work with an H&R Block tax professional without visiting a store by paying for the online tax professional service, which allows you to upload your tax documents and then have a tax pro do the work for you. There’s also Tax Pro Review, a paid service where a tax professional will review your return for you before filing.

A Quick Look at TurboTax

TurboTax has been around since the mid-1980s. Part of its popularity is because it’s owned by Intuit. Intuit also makes software called Quickbooks, which millions of companies use to manage their accounting. But TurboTax is also popular because it offers a user-friendly design and straightforward step-by-step guidance.

There are three paid TurboTax plans that run from $39 to $159 for federal filing. State filing varies from $0 to $49 per state with the paid plans. Here’s a breakdown of your options with TurboTax. ²

TurboTax Filing Options

As with H&R Block, TurboTax’s free option supports the 1040 with some child tax credits. The Deluxe option will be enough for most filers if they want a paid option, though. You get slightly more features for that additional cost, however. Small business owners and self-employed individuals will need to upgrade to the Premium option, which costs $150 for a federal return. TurboTax also frequently runs sales on its services and products during tax season.

TurboTax doesn’t have any physical locations like H&R Block, but it does provide access to tax experts like CPAs and EAs. It will cost extra for you to get access to an expert.

H&R Block vs. TurboTax: Cost

Cost is always a consideration when you choose a tax filing service. H&R Block and TurboTax are the two most comprehensive online services available and likewise, they are also some of the most expensive. However, while H&R Block was once cheaper than TurboTax, the companies are now similar when it comes to cost.

As mentioned, both services offer a free option, covering simple returns. You can also file some additional schedules and forms with this option. However, H&R Block does cover more forms and schedules with its free option. It also allows you to file multiple state returns for free. By contrast, the free plan from TurboTax includes only one free state return. This all gives H&R Block a slight advantage if you qualify for the free option.

It’s great if you can file your taxes for free, but the average filer will need to upgrade to another option. The Deluxe option is enough for many filers. Both Deluxe options include deduction-finding software, help with charitable donations and access to tax financial experts through online chat.

There are a couple of big differences between the options in the forms that they support. TurboTax’s Deluxe option supports Schedule SE, which allows you to file self-employment taxes. It also allows you to file Schedule C if you have business income to report but do not have any expenses to report.

If price is your primary concern, you may want to consider a cheaper service like TaxAct. TaxAct is well-known for being affordable but it doesn’t quite provide the same level of simplicity and educational material that these two services offer.

Get a quick estimate of your tax situation before choosing tax software by using our income tax calculator.

H&R Block vs. TurboTax: Comparing Free Options

TurboTax’s Deluxe option is the more comprehensive option for the average filer, but let’s briefly consider the free options again.

H&R Block and TurboTax both offer a free option for filers with simple returns. You can often use those options if you don’t own a home, you have no investment income other than simple dividends or interest and you don’t have rental properties or business expenses.

You cannot use either form if you itemize deductions. However, there are a few deductions and credits available with the free plans. Notably, you can claim the EIC and Additional Child Tax Credit. H&R Block also includes Schedules 1 through 6, unlike TurboTax.

So if your finances are simple, the biggest consideration is exactly what forms you need to file, because H&R Block includes more forms and schedules with its free plan.

H&R Block vs. TurboTax: User Friendliness

Both of these services are known for their ease of use, but TurboTax is generally the more user-friendly of the two. This is generally true for both desktop and mobile users.

TurboTax’s interview-style approach will guide you through the filing process with simple questions. There is minimal tax jargon. H&R Block is also user-friendly, but its questions and explanations are not always as clear as you would hope.

The filing process with TurboTax also includes encouraging phrases throughout. This isn’t a necessary feature, but taxes are stressful for many people. Seeing, “You can do this,” throughout the process may help to reduce some anxiety.

Another important consideration is how easy it is to upload documents. Both services do well on this front. H&R Block and TurboTax both let you upload your W-2. Both services can allow you to import your previous returns. They also make it easy to fill out your state return after going through your federal return. Your information quickly transfers so you don’t waste time retyping everything.

Bottom Line

So, who wins? Well, it depends on what exactly you’re looking to do. H&R Block covers more filers with its free option. The two Deluxe options are similar in terms of price, but TurboTax’s Deluxe option supports more forms that self-employed, freelance and contract workers may need. Both services are user-friendly but TurboTax is slightly simpler with more straightforward language.

Beyond these factors, which tax filing service you choose may come down to personal preference. Some people prefer one over the other because they simply like the way it looks. They might also choose H&R Block so they can have the option of filing at a physical location.

Of course, H&R Block and TurboTax are not the only two tax filing services. You may want to consider other options like TaxAct or TaxSlayer if you’re looking for a budget option. Credit Karma also allows you to file entirely for free.

Tips for Choosing a Tax-Filing Service

• Tax season is a good time to take stock of your overall financial picture. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
• TurboTax and H&R Block are two of the most well-known tax filing services. There are other great services to consider, though, so make sure to shop around. Check out our list of the best tax filing software, as well as the best free online tax software.

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