TurboTax vs H&R Block: Key Differences & What’s Best

TurboTax and H&R Block are both established names in the field of tax preparation; TurboTax is a leader in tax preparation software, and H&R Block has long been known for providing in-person tax preparation services. Both software have evolved to offer online tax preparation, tax software, and different levels of tax assistance. TurboTax is ideal for QuickBooks users who want a streamlined solution, H&R Block is a better option for individuals who are looking for an inexpensive solution to filing their own taxes.

When to Use TurboTax

TurboTax offers four ways to file your taxes, including a completely free option for simple tax situations at any income level. It’s also mobile-friendly, allowing you to file your return directly from your phone if desired. You can follow the steps from within the software to complete your return easily, or you can pay extra to speak with your tax advisor. TurboTax allows you to scan your tax documents, which reduces errors and simplifies the process of adding your data.

We selected TurboTax as the best small business tax software for freelancers and self-employed because it lets you consult with a tax professional.

TurboTax is better for:

• QuickBooks users who want a streamlined tax solution: Intuit is the developer of both QuickBooks and TurboTax. TurboTax allows you to transfer your financial data quickly from QuickBooks to your tax forms. You can also import data from Square, Lyft, or Uber.
• Members of the military: You can file your own state and federal taxes for free using any of TurboTax’s online products, including Free Edition, Deluxe, Premier, and Self-Employed. This isn’t valid for TurboTax Live or TurboTax CD/Download products, and it’s only for active duty and reservists of an enlisted rank (E-1 through E-9) with a W-2 from the Defense Finance Accounting Service.
• Taxpayers who want to import cryptocurrency transactions: TurboTax’s partnership with Coinbase provides you with assistance to e-file your cryptocurrency losses and gains. With TurboTax Premier, you can import up to 250 transactions at once from Coinbase.

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When to Use H&R Block

H&R Block has provided tax filing services for consumers since 1955, and it has become one of the most popular filing services since then. It currently offers four online filing options, depending on your tax situation. You also download H&R Block’s software, which is available in four different versions. Unlike TurboTax, which only provides online tax services and downloadable software, H&R Block has over 12,000 retail tax offices in the United States where you can file your return in person.

We selected H&R Block as the best inexpensive desktop software for corporate and partnership returns in our article about the best small business tax software.

H&R Block is better for:

• Taxpayers seeking different levels of tax assistance: Whether you want to file your taxes online yourself or with a tax expert, H&R Block provides flexibility and will work with you to determine the best solution. If you’re looking to meet with someone in person rather than file your taxes online, H&R Block offers this valuable option as well.
• Taxpayers who want inexpensive DIY filing options: H&R Block’s online DIY filing options are less expensive than TurboTax in every category, including state filing fees. H&R Block’s Online Assist service is also less expensive than TurboTax’s Live Basic assisted service.
• Students with education expenses who want to file for free: H&R Block’s free version has one significant advantage over TurboTax—it lets you include deductions for student-loan interest and tuition and fees. E-filing is also free, and it ensures that your tax return arrives safely. If you’re due a refund, it’ll also help the IRS process your payment more quickly.
• Expats seeking tax services: If you’re an American expat, H&R Block’s international tax experts will work with you to file your expat taxes, ensuring that you receive every possible credit and deduction.

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When to Use an Alternative

TurboTax and H&R Block are two of the top businesses when it comes to tax filing services, but that doesn’t mean they don’t have limitations. There are still some taxpayers for whom they aren’t a fit. You may need an alternative for certain situations, including:

• Freelancers looking for free tax software with tax return storage: We selected FreeTaxUSA as the best free tax software for freelancers because it allows self-employed business owners to file their Schedule C for free, plus a state tax return at a low cost. It also provides tax return storage and the ability to file prior-year and amended returns.
• Self-employed taxpayers who need a value-priced program to complete their Schedule C that includes consulting a tax pro: If you don’t need to file a corporate or partnership tax return, TaxSlayer is a good and inexpensive option that also gives you the ability to speak with a tax professional. TaxSlayer Self-Employed features priority customer support, guidance for deductions, and audit assistance.
• Taxpayers who want to prepare both their individual and business tax return in one program: TaxAct is our choice for the best overall small business tax software, and it was the only software reviewed that allows for online preparation of both individual returns (Form 1040) and business returns (Forms 1120, 1120S, and 1065).

TurboTax vs H&R Block at a Glance

TurboTax vs H&R Block: Pricing

While the free versions of both TurboTax and H&R Block can be useful for individuals with basic tax situations, they don’t allow you to take some of the most common deductions or report certain types of income. In the paid versions, they allow you to upload tax documents rather than manually inputting the data, which saves time. You also receive access to various levels of tax support. If cost is a primary consideration but you’d like a premium tax filing experience, H&R Block comes out on top.

TurboTax Pricing

TurboTax pricing is very complex. First, you have a choice between Basic, Deluxe, Premier, and Self-Employed versions based on your filing needs. Then, you can select between DIY, Live Basic (assisted), and Live Full Service, depending on your preference. Assisted plans provide a consultation with a tax professional, while with the Full Service plan, a tax professional prepares your entire return. Prices for its CD or downloadable version range from $50 to $120 for federal returns., and more detail is below.

Online Preparation and Filing

The prices listed below will fluctuate throughout the year, but there’s currently a discounted rate available if you file by March 31.

Free/Basic

Only for simple tax returns, the Free edition covers W-2 income, child tax credit, and EITC. You can file Form 1040 and a state return for free, but you can’t file Schedules 1 through 3. Upgrade to its Live Basic version and get on-demand video access to a tax specialist plus final review.

Deluxe

Deluxe includes all the features in Free, plus access to more than 350 tax deductions and credits. It’s best for maximizing mortgage and property deductions, and it comes with a standalone app, ItsDeductible, that helps you maximize your charitable donations.

If you need support for W-2 and unemployment income, mortgage and property tax deductions, charitable donations over $300, and student loan interest and education expenses, you may wish to upgrade to TurboTax Deluxe Live.

Premier

The Premier plan is ideal if you have rental property or investments. It contains everything in Deluxe, plus it can import investment income automatically and handle cryptocurrency transactions. It also covers stocks, bonds, employee stock purchase plans (ESPPs), and other investments, as well as rental property income and deductions.

Self-Employed

The Self-Employed edition is required if you have business income and expenses. It includes everything in Premier, as well as extra deduction help. If you’re a QuickBooks Self-Employed user, you can import your business income and deductions to TurboTax.

Audit Defense

TurboTax has partnered with TaxAudit to provide Audit Defense for $49.99 per year. This prepaid audit defense lets you avoid having the unknown expense of hiring a tax expert. TaxAudit will defend both state and federal income tax returns, including those that were filed late. It’ll also explain your options and work with you to develop a strategy, as well as schedule and attend all audit appointments on your behalf.

CD/Download

H&R Block Pricing

H&R Block’s online software includes a free edition for simple returns as well as three paid packages with prices that range from $29.99 to $84.99 per federal return, plus $36.99 per state. If you need the help of a tax pro, its Online Assist version starts at $39.99 per federal return. If you prefer desktop software, you can choose from four tiers with prices ranging from $39.95 to $109.95 for unlimited returns, although you may have to pay extra for e-filing more than five returns.

Online Preparation and Filing

Free Online

The free plan is best for renters, students, and W-2 employees. It includes W-2 photo capture and easy import, and it supports Form 1095 (A and B), 1098 (E and T), and 1099 (B, DIV, INT, and R). While you have access to the software’s help center, you don’t get live customer support.

Deluxe

This plan is for you if you have mortgage interest, real estate taxes, or health savings account (HSA) contributions. It gives you access to all the features of the free option, plus access to live phone or chat support, and its unique DeductionPro tool, which helps you optimize charitable donations.

Premium

If you’ve sold stocks, bonds, or other investments that must be reported on Schedule D, you’ll need the Premium edition. In addition to all of the features in Deluxe, Premium also helps you claim rental income and deductions on Schedule E and import expenses from your favorite expense tracking applications, such as Stride.

Self-Employed

Get this plan if you own a business that reports on Schedule C. It includes everything in Premium, plus the ability to claim all small business expenses, including asset depreciation. If you’re an Uber driver, this plan also allows you to import your tax information directly from Uber.

Online Assist

Each online package includes an Online Assist version with live tax pro support, which gives you unlimited access to live tax experts with share-screen and on-demand chat or video. You can file your returns at an office or virtually.

Live Full Service

TurboTax’s Live Full Service option does away with tax software altogether, instead matching you with a tax preparer who will process your tax return once you upload your tax documents. You’ll meet with them twice—before they begin working and then again when your return is ready for review. The preparer will file your return for you, with prices ranging from $199 to $389 for federal returns depending on the level of complexity, plus $59 for state returns.

Block Advisors

For year-round assistance with bookkeeping and payroll, H&R Block has Block Advisors available for a monthly fee. The DIY Starter service starts at $50 per month, and full-service bookkeeping starts at $150 per month. Both plans include full, on-demand access to Xero, and you can also access both virtual and in-person help. Block Advisors also offers payroll services—if you’re self-employed, you can opt for the Self-Employed version, which starts at $59 per month. If you have one or more employees, the plan starts at $79 per month plus $10 per employee per pay run.

For more information about this service, check out our Block Advisors review.

Desktop Software

Basic

If you’re an employee or a parent who needs simple federal filing, then Basic is for you. It includes features like drag-and-drop importing of prior-year returns, photo uploads, and free in-person audit support.

Deluxe + State

This product is ideal if you’re an investor or a homeowner who wants to maximize tax deductions (such as charitable donations and home mortgage interest) and report investment income. This plan also includes everything in Basic.

Premium

If you’re a self-employed individual, a freelancer, an independent contractor, or a rental property owner, Premium has the tools you need to manage your taxes. Get Premium if you have income reported on Form 1099-MISC or Form 1099-NEC.

Premium & Business

If you’re a small business owner, this plan is a must. You can create employer forms (Forms W-2 and 1099) and payroll forms (Forms 940 and 941). However, it appears that a few important forms are no longer supported, including partnership and limited liability company (LLC) tax returns (Form 1065), corporate and S-corp returns (Forms 1120 and 1120S), nonprofit returns (Form 990), and estate and trust returns (Form 1041). You can also prepare your individual return with the same features as the Premium edition.

Takeaway: Even when you consider discounts, H&R Block almost always turns out to be less expensive than TurboTax for comparable products. And H&R Block’s free version is more comprehensive than free plans from other services. It also allows you to file multiple state returns for free.

TurboTax vs H&R Block: Features

Both TurboTax and H&R Block include guarantees against filing errors and the backing of an organization that has a strong track record of tax preparation expertise. TurboTax’s donation calculator and deduction maximizer are both useful tools, while H&R Block’s expat tax services and knowledgeable Block Advisors make it stand out from its competitors.

TurboTax Features

TurboTax provides many useful features, including auto-import of your tax documents if your employer partners with TurboTax. If you’re a QuickBooks user, syncing your data with the software is simple. In addition to a donation calculator that allows you to accurately estimate the value of your noncash charitable donations, you can also select how you want to receive your tax refund. TurboTax also offers a 100% Accuracy Guarantee and an Audit Support Guarantee.

• Deduction maximizer: Ensure that all possible deductions are applied and maximize your refund with TurboTax’s deduction maximizer. It’ll search more than 350 tax deductions and credits to find every qualified tax opportunity. You’ll also receive step-by-step guidance on how to turn your investments into tax breaks.
• 100% Accuracy Guarantee: Once you have entered your information, TurboTax CompleteCheck will search for missing, incomplete, or conflicting information. It’ll then guide you to fix these errors before you file. TurboTax guarantees that all calculations are 100% accurate, or it will pay any penalties or interest that you’re charged by the IRS.
• Auto import of tax documents: If your employer partners with TurboTax, your W-2 will be imported directly. You also have the option of using the mobile app to take a picture of your W-2 and upload it to your return. You can import certain 1099s, and the Self-Employed version of TurboTax allows you to upload 1099-NEC images as well as income and expenses from Square, Uber, and Lyft.
• Audit Support Guarantee: If you’re ever audited by the IRS, TurboTax will provide one-on-one guidance from a qualified tax specialist. They’ll help you to understand your IRS notice and answer all of your audit-related questions. They won’t represent you in the audit or provide audit advice (including legal advice), but they’ll guide you on how to get through the audit process.
• Tax refund options: TurboTax lets you choose how you want to receive your refund—whether that’s by paper check, direct deposit to your bank account, applied to next year’s taxes, or a purchase of United States savings bonds. You also have the option of using a portion of your refund to pay for your software, but additional fees apply.
• Donation Calculator: A free online tool, ItsDeductible, is available with the Deluxe, Premier, and Self-Employed plans. If you make regular noncash charitable donations, it’ll provide the IRS-approved value of each item. ItsDeductible uses market data from online thrift stores, resale shops, and auction websites such as eBay to estimate the dollar value of your donated items.

For more information, read our TurboTax Review

H&R Block Features

H&R Block offers a host of guarantees, promising that you’ll receive the maximum refund possible, that your return will be 100% accurate, that you’ll receive free audit support in the event of an audit, and a No Surprise Guarantee. Its free tax calculator enables you to plan for the future, and American expats can take advantage of its expat tax services.

• Maximum Refund Guarantee: With the Maximum Refund Guarantee, if you discover an error in the H&R Block tax preparation software that entitles you to a larger refund (or smaller liability), you’ll receive a refund of the fees paid to prepare the return and you may also use the software to amend your return for free.
• Tax Calculator: The free tax calculator uses information about your current tax situation to help you plan ahead. Answer a few questions about your life, income, and expenses, and the calculator will estimate your taxable income and filing status based on those factors. This is a great tool for determining whether you’ll end up owing taxes or will be entitled to a refund.
• 100% Accuracy Guarantee: With the 100% Accuracy Guarantee, H&R Block will also refund any fees incurred to file a return that includes an error on its part, along with any penalties or interest up to a maximum of $10,000.
• Expat Tax Services: H&R Block provides expat tax services for American expats. Its international tax experts will work with you to file your taxes, or you also have the option of filing them yourself. H&R Block’s software is designed to identify tax benefits for expats, ensuring that you take advantage of every credit and deduction.
• No Surprise Guarantee: Only available at select locations, H&R Block’s No Surprise Guarantee promises 20% off the following year’s tax preparation if it fails to provide any of the following benefits: transparent pricing, free audit assistance, transparent process, and a free mid-year care check-in. These benefits are available for all H&R Block clients, whether you’re an assisted client or if you prepare your own taxes using the DIY online or software tax preparation products.
• Audit Support Guarantee: In the event of an IRS audit, H&R Block offers free audit support to guide you through the process and how to respond to it. If you need an H&R Block enrolled agent to represent you before the IRS, you’ll need to purchase its Peace of Mind Extended Service Plan add-on.

For more information, read our H&R Block Review.

Takeaway: With guarantees that range from accuracy to maximum refund to audit support, both TurboTax and H&R Block stand behind their services. They also each have distinguishing features, such as H&R Block’s expat tax services.

TurboTax vs H&R Block: Ease of Use

Compared to TurboTax, H&R block’s online interface focuses more on the bare basics of information, gathering all of the information you need without a lot of fuss and upselling. Although there are fewer questions and options to select from with H&R Block’s online interface, there’s always an option to access more information if you need it.

TurboTax Ease of Use

TurboTax’s user interface is visually appealing and easy to use, and it provides easy access to important tools. Its interface is like a chat with a tax preparer, and it allows you to skip around as needed. A banner running along the side keeps track of where you stand in the process and flags items that still need to be completed.

On the left side of the screen is a vertical toolbar that lets you navigate to sections that include MyInfo, Federal, State, File, and Review. You can also access other features such as a searchable list of tax forms and schedules as well as embedded links with tips and explainers. However, if you’re a basic filer, the guided tax journey can take longer than necessary with many questions that don’t relate to your situation.

H&R Block Ease of Use

H&R Block’s user interface is seamless and easy to navigate, with clear instructions for the next steps on every page. You also have the option of skipping some pages and returning later to complete them. Skipping around to specific spots can be tricky, but a banner across the top keeps track of where you’re in the filing process. The help menu is visible from all pages, and you can access the chat support portal as well.

To get started, you’ll need to answer a series of questions about your life, income, deductions, and other information. It’s not easy to skip ahead though, as this requires some level of expertise with taxes. Once you log in, you can view the status of your refund and instantly access the calculator to estimate what it’ll be.

Takeaway: While TurboTax offers an engaging user experience, H&R Block’s online tax interface is more straightforward and less cluttered.

TurboTax vs H&R Block: Mobile App

TurboTax and H&R Block both have a mobile app available for iOS and Android, and they have useful features such as the ability to take a photo of your W-2 and import the data to your account. The major difference between the two is that TurboTax lets you go one step further by e-filing your return, whereas H&R Block only allows you to enter data from your mobile app.

TurboTax Mobile App

Available for both iOS and Android, TurboTax’s mobile app allows you to work on your return from anywhere. Snap a photo of your W-2, answer a few questions, and e-file securely using your smartphone or tablet. Use the free edition to file your own taxes for free with the free edition for simple tax returns. TurboTax’s live tax experts will provide unlimited tax advice and an expert final review before you file.

H&R Block Mobile App

MyBlock, H&R Block’s mobile app for iOS and Android, is a useful tool for preparing your tax return. You can use your phone to take a picture of your W-2 and use MyBlock to import it to your account rather than importing it manually. You can also access and manage your Tax Identity Shield membership, credit score, and Emerald card with the app. If you need assistance, you can receive support from a tax pro through on-demand chat or video.

Takeaway: While the mobile apps for both TurboTax and H&R Block offer useful solutions while you’re on the go, opt for TurboTax if you’re fully remote and intend to file from your mobile device.

TurboTax vs H&R Block: Customer Support

TurboTax Live offers a one-on-one review with a tax pro before you file, as well as unlimited live tax advice throughout the year. Similar to QuickBooks Live’s customer support, you can speak with a tax pro via one-way video conferencing. TurboTax also offers Live Full Service, which allows you to upload your tax documents and meet with a tax preparer virtually so that they can prepare the return for you.

In contrast, H&R Block offers Online Assist, which entitles you to unlimited, on-demand chat or screen-sharing sessions with a certified public accountant (CPA), enrolled agent (EA), or other tax specialists. It also offers other services such as Tax Pro Review and full-service assistance at brick-and-mortar stores.

TurboTax Customer Support

There are several ways to receive assistance from TurboTax. Technical support is available through a chatbot or contact form, and paid users have access to a TurboTax specialist. TurboTax Live is the most outstanding support option—it provides access to a one-on-one review with a tax expert prior to filing, as well as unlimited advice while you prepare your taxes. Its newest feature, TurboTax Live Full Service, will prepare and file your return for you. Your tax specialist will schedule a video call with you before they begin work and then again when your return is ready for review and filing.

H&R Block Customer Support

H&R Block’s Online Assist provides unlimited, on-demand chat support with a qualified tax specialist. You’ll have access to them at any time while they’re preparing your return, but they won’t review, sign, or e-file your return for you. Its Tax Pro Review service offers a one-on-one review of your completed return with a tax pro who will review your documents and check for accuracy. They’ll also look for any missed deductions or credits and will sign and e-file your return for you if desired.

H&R Block has a help center that can be accessed from within the software. This includes extensive online customer support, including a database of frequently asked questions (FAQs), blogs, and communities of experts. If you purchase a paid version, you’ll receive unlimited live chat support and the ability to call and speak with a real person. You can also visit an H&R Block agent at any of its 12,000 offices.

Takeaway: Both TurboTax and H&R Block offer different levels of customer support depending on your needs. TurboTax offers both a basic version and a full-service version which provides access to a tax specialist who will either guide you through the process or prepare your return for you. H&R Block offers Online Assist and a Tax Pro Review service in addition to in-person support at its offices across the globe.

Bottom Line

While both TurboTax and H&R Block have strong human support options, the level of help you receive varies by price. Tax filers who are looking for unlimited, on-demand tax support, including a final review, may be better served with TurboTax Live, which offers all of these in one package despite the higher price point. If you’re looking for a more customizable package that allows you to select the level of support you need, then H&R Block is the better option.