H&R Block provides free Federal and State tax filing for a limited number of filers who only have common tax forms or situations.
- W-2 income
- Unemployment income
- Social Security Income
- People with Student Loan Interest
- People claiming the Child Tax Credit
If you have more advanced needs such as investing, you will need to pay for a higher level of service.
H&R Block online has a very comprehensive program compared to other competitors. Not all users will be able to use H&R Block for free. If you have a Health Savings Account (HSA) or need to pay for dependent care expenses, you will need to switch to the Deluxe tier.
The IRS Free File program provides free tax software from H&R Block and other companies through a partnership with the Free File Alliance. To be eligible for this, you must earn $73,000 or less per year (adjusted gross income) and meet the provider’s requirements.
Will H&R Block simplify tax filing in 2023?
H&R Block makes filing taxes easier by using logical steps to guide users through the process with less stress.
The following will help you do your taxes easily so that you can understand what you have done and what is left to do.
- Helpful software
- Navigation bars
- Built-in tools
- Simple words
- Strong choices for importing
Getting tax credits like the Earned Income Tax Credit (EITC), the Child Tax Credit, and the American Opportunity Tax Credit is easy. The software simplifies managing pre-refunded credits (like the Advanced Child Tax Credit) and pre-paid taxes (such as quarterly tax estimates).
We found only a few disadvantages during our testing. Self-employed individuals need to figure out their retirement account contributions limit on their own. The software is not very convenient for active traders because it has limited brokerage and crypto integrations.
We found that H&R Block is the second easiest tax software to use, after TurboTax when compared to all other tax software. You can get in-person support by visiting an H&R Block location, which is an added benefit.
H&R Block Features
H&R Block is a high-quality tax software that has many impressive features. Here are some important features for regular users:
H&R Block helps tax filers with their tax forms by using a question-and-answer navigation style. The questions don’t use industry jargon whenever possible. H&R Block explains jargon by using “Read More” bubbles or hover features.
Quick Surveys To Speed Up Filing
At the start of each major section (Income, Deductions, Credits, etc.), H&R Block prompts users with a short questionnaire. The questionnaire narrows down the parts of the software relevant to each user. You can always go back and review other sections, but it’s nice to save time skipping areas you don’t need to worry about.
Upload Tax Documents for Fast Process
Online filing with H&R Block is very easy to use. Users can upload various forms such as 1099-NEC, 1099-MISC, 1099-INT, W-2 forms, and more. If the form has a standard layout, you can upload a copy to H&R Block.
You can use the H&R Block app to take a picture of your supported forms and upload them. The program examines the documents you upload and completes forms automatically, whenever it can. Make sure it’s correct, but verify it again.
The H&R Block software has calculators that are simple to use for mileage deductions, asset depreciation, and other expenses. These tools simplify the process of filing for those who don’t want to calculate depreciation themselves.
People who own small businesses, do side jobs, or invest in real estate can find everything they need to do their taxes without having to pay a lot of money to an accountant.
Live Chat Support
H&R Block offers free live chat tech support on the Deluxe, Premium, and Self-Employed tiers. It also offers limited “tax guidance,” though this is not tax advice. The built-in free guidance helps users find credits, deductions, or other areas that they may have missed. You have to pay if you need more help from a human tax expert.
Options to Upgrade
With H&R Block’s Online Assist program, you can get unlimited support from tax-filing experts. The add-on is expensive, but it ensures that users receive answers from a qualified person. You have the option to upgrade to plans that offer:
- You can ask as many tax questions as you want with unlimited access.
- You can give your tax return to a professional.
- You can have a hybrid tax experience by using both online and in-person services at a nearby H&R Block office.
H&R Block Drawbacks
There are only a few things that are not great about H&R Block. The main issues are the cost and a few problems we encountered.
Unable to Compute Contributions for Self-Employed Retirement Account
People who work for themselves can choose how much money they want to put into their retirement savings. H&R Block does not assist in calculating the highest possible contribution amount for these taxpayers, which may result in costly tax mistakes.
Sometimes people may accidentally put more money towards taxes than they are allowed to, or they may not realize they can save more money on taxes by contributing more. This problem will not impact additional users, but it is unexpected considering the high quality of the other parts of the online application.
Need To Pay To Report HSA Contributions
H&R Block has a pricing issue related to HSA contributions. To use H&R Block’s Deluxe edition, you will need to upgrade if you have a health savings account (HSA), even if it is provided by your employer. Some people may be surprised by this.
High-Cost Audit Support
The cost of the company’s Worry-Free Audit Support is $19.99. You need to pay this fee in addition to any other software costs. Some companies provide audit support as a part of their services instead of charging an additional fee for it.
Is H&R Block Safe?
Hackers often target Tax Prep companies to obtain personal information. H&R Block uses different security measures to keep users’ financial information safe. These include encryption, multi-factor authentication, and web-browsing encryption, which are all commonly used in the industry. The company has some flaws. The company had a data breach in 2019 and some customer information was leaked.
How to Contact H&R Block?
We love H&R Block because they offer various ways to get help. You have three options to get help with your tax return: online, by phone, or virtually with a tax preparer. You can also go to one of H&R Block’s many locations.
If you want to reach H&R Block by phone, simply dial 1-800-472-5625. To visit an office in person, you can book an appointment here.
Is It Worth It?
H&R Block Online is a good option for those who are eligible for free filing. The software is expensive, but there is a lot available for free. The Premium version of the software is a good deal for investors and gig workers.
If you’re thinking about getting the Deluxe Tier, it’s important to carefully consider the cost. If you are a Deluxe user, you can save money by checking out TaxSlayer Classic or FreeTaxUSA. They are just as easy to use. Self-employed individuals with business assets that are losing value can consider using these tools as a viable option.
If you’re a landlord or have assets that are losing value, you should think about whether H&R Block is the best option for you. TurboTax is great for rental property owners because it’s easy to use and helps with complicated things like property depreciation and finances.
Does H&R Block Online support file taxes for cryptocurrency investments?
H&R Block Online provides clear instructions on how to file taxes for cryptocurrency trades. The software treats it the same as other capital gains activities. It is not easier to file crypto using any special integrations.
Does H&R Block provide loans for refund advances?
Currently, H&R Block is promoting tax refund advance loans exclusively for those who visit their office locations.
Are there any refund deals available at H&R Block?
H&R Block is currently not offering any discounts on tax refunds. In the past, the company worked with Amazon to provide higher returns to customers who chose to receive refunds in the form of gift cards. It might come back later in the season.