H&R Block is the world’s largest tax service provider. Since it was founded in 1955, H&R Block has prepared more than 680 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. 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. In the fiscal year of 2015, H&R Block prepared 24.2 million tax returns and had over $3.1 billion in revenue.
H&R Block used to be considered the expensive option in tax preparation. Not anymore. Now, H&R Block provides free federal returns and free state returns for simple tax cases.
What Services Does H&R Block Offer?
H&R Block provides the following services:
- - Free filing for federal and state 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 three online tax preparation editions: Free ($0), Deluxe ($34.99), and Premium ($54.99). Using either the Deluxe or Premium edition, an extra fee of $36.99 is charged per state tax return. Additionally, H&R Block offers a Best of Both service, which provides a review from a tax professional, at an additional price starting at $40. (This service is an add-on feature that you can choose after selecting your edition of choice.)
The Free edition is only for simple returns, but both federal and state returns are free. This version 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 Deluxe edition costs $34.99. It is ideal for homeowners who want to maximize their deductions and optimize charitable donations. This version also comes with unlimited expert tax advice via chat and technical support by phone.
The Premium edition costs $54.99 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 add-on service 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 service has a price tag starting at $40.
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 and state tax return option for taxpayers with simple returns.
- - 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:
- You have to purchase the Deluxe Edition to benefit from itemized deductions and basic benefits and credits.
- State tax returns cost $36.99.
Compare H&R Block with other leading tax preparation services to ensure you are getting the best deal possible.