H&R Block is the world’s largest tax service providers. Since it was founded in 1955, H&R Block has prepared more than 650 million tax returns. Its headquarters are in Kansas City, but it has around 12,000 retail locations in all 50 states, Puerto Rico, U.S. military bases around the world and other U.S. territories. In the tax year of 2014, H&R Block prepared 24.2 million tax returns and had over $3.0 billion in revenue. Taxpayers can file their taxes online or with the help of one of H&R Block’s 80,000 tax professionals.
H&R Block has an A+ rating with the BBB and as well as tax preparation, also offers banking, payroll, personal finance and business consulting services. H&R Block used to be considered the expensive option in tax preparation. Not anymore. In 2016, H&R Block provides free federal tax returns for simple returns and a state tax return for just $9.99.
H&R Block used to be considered the expensive option in tax preparation. Not anymore. In 2016, H&R Block provides free federal tax returns for simple returns and a state tax return for just $9.99.
What Services Does H&R Block Offer?
H&R Block provides the following services:
- - Free filing for federal tax returns when you file using H&R Block’s Free Edition
- - Affordable Car Act Ready
- - Free e-file and direct deposit
- - Account Information Roll Over
- - Accuracy review
- - Free unlimited advice from a tax expert
- - Free import of W-2, 1095-A and last year’s return from TurboTax or TaxAct
- - Prior Year Return Access
- - Step-by-Step Guidance
- - Free Tech Support
- - Create Prior Year Returns
- - Audit assistance
- - Amended tax returns
- - Complex Tax Filing
- - State Tax Filing and Preparation
What Is H&R Block's Pricing Structure?
H&R Block offers five online tax preparation editions: Free (state tax return costs $9.99), Basic ($24.99 plus $36.99 per state return), Deluxe ($34.99), Premium ($49.99), and Best of Both ($79.99). Best of Both includes a review from a tax professional. None of these editions include the state tax return, which is priced at $36.99 for all editions except Free ($9.99).
The Free edition is only for simple federal returns. However, it includes free e-file and includes many of the features offered by the paying editions, such as accuracy review, refund reveal, step-by-step guidance, expert tax advice, and free import of W-2s and last year’s tax return with TurboTax or TaxAct.
The Basic edition costs $24.99. It is also designed for simple tax returns but it offers free storage of your tax return for six years, and you can access data from last year’s tax return with H&R Block.
The Deluxe edition costs $34.99. It is ideal for homeowners and investors who want to maximize their deductions and report dividends and capital gain distributions. The Deluxe edition also helps with reporting retirement income and charitable donations. The software also provides additional advice for key tax benefits after big life changes, such as marriage, the birth of a child, a new job, or going to college.
The Premium edition is worth $49.99 and is designed for self-employed workers, business owners and rental property owners. This version covers self-employment income (Schedule C), rental property (Schedule E), and helps taxpayers calculate the cost basis of their home sale, dividends, gift and inheritance assets.
The Best of Both edition gives you the flexibility of filing online while still getting the peace of mind of having a tax expert review, correct, sign, and file. The Best of Both edition has a price tag of $79.99.
What Are the Advantages & Disadvantages of H&R Block?
Benefits of H&R Block:
- - The peace of mind of using a market leader with over 60 years’ experience
- - H&R Block has a free federal tax return option for taxpayers with simple returns, and the state return is only $9.99
- - Ability to download the data from the previous year’s tax return filed with competitors, such as TurboTax and TaxAct
- - H&R Block provides tax support from live tax experts online and includes the option of talking face-to-face with a tax expert at one of its retail offices
- - Option of filing online and have a tax expert review, correct, and sign your return
Disadvantages of H&R Block:
- H&R Block doesn’t provide a truly free option. The “free” edition is only for the federal return. Filing the state return costs $9.99.
- You have to purchase the Deluxe Edition to benefit from itemized deductions and basic benefits and credits
- State tax returns cost $36.99 ($9.99 for the Free edition)
Compare H&R Block with other leading tax preparation services to ensure you are getting the best deal possible.