H&R Block vs. TurboTax - Which is the Best Tax Preparation Software
It’s that time of the year again, tax season! With the deadline fast approaching and the pandemic restrictions still in place, filing taxes online has become more popular than ever. And when it comes to filing taxes online, two names always come up - H&R Block and TurboTax.
But which one is the best? Here’s a detailed comparison to help you decide.
Pricing
H&R Block and TurboTax offer a range of plans with different prices, depending on the complexity of your tax return. Here’s a breakdown of their pricing structure.
H&R Block
- Free Online: $0 federal, $0 state, simple tax returns
- Deluxe Online: $49.99 federal, $36.99 state, complex tax situations
- Premium Online: $69.99 federal, $36.99 state, freelance or self-employed
- Self-Employed Online: $104.99 federal, $36.99 state, small business owners
TurboTax
- Free Edition: $0 federal, $0 state, simple tax returns
- Deluxe: $60 federal, $50 state, maximize deductions and credits
- Premier: $90 federal, $50 state, investments and rental property
- Self-Employed: $120 federal, $50 state, small business owners
While the Free Edition of both software is similar and there is no difference in terms of free federal filing, H&R Block's paid options are slightly cheaper than TurboTax.
Ease of Use
Both H&R Block and TurboTax offer a user-friendly interface and step-by-step guidance for filing taxes, making the process easy and stress-free.
The user interface of H&R Block is relatively simple, with all the important information and steps presented in a straightforward manner. It also offers access to different tax forms, calculators and tools, making it easier for users to get things done.
TurboTax, on the other hand, provides a more interactive interface with a lot more options and features, such as the ability to import tax documents from different sources, virtual tax assistants, and audit defense. These features make it an attractive option for more experienced users, but might be overwhelming for first-time filers.
Customer Support
H&R Block and TurboTax both offer different avenues for customer support, such as email, live chat, phone calls and social media. H&R block has over 12,000 retail locations in North America, which can be helpful for those who prefer in-person assistance, while TurboTax offers paid professional review and tax advice by phone or chat.
Accuracy and Maximum Refund Guarantee
Both software have a maximum refund guarantee and will reimburse you up to the amount of software fees if their calculations are incorrect.
Verdict
Both H&R Block and TurboTax are great options for online tax preparation, depending on your needs and budget. If you have a simple return and are looking for an affordable option, H&R Block’s paid plans might be a better fit for you. On the other hand, if you have a more complex situation and value a large number of features and options, TurboTax might be the better choice.
At the end of the day, both software have their respective pros and cons, and the best option ultimately depends on your personal preferences and tax situation.