H&R Block versus TurboTax (2024)

When it comes to using H&R Block versus TurboTax to file your tax return, a lot comes down to your financial complexities. Do you have a full-time job and few investments, or are you also juggling side gigs, rental property and more? That may help determine which tax preparation software is right for you.

These popular programs are easy to use and simplify filing, and they also offer support from tax professionals if you’re stumped. Though they share many similarities, there are some subtle differences between the two which may make one more appropriate for your situation than the other.

Overview of TurboTax versus H&R Block

Both TurboTax and H&R Block will guide users through preparing and filing their tax returns, said Robert Farrington, founder and CEO at The College Investor. TurboTax is known for its user-friendly interface and step-by-step approach. H&R Block offers a similar service, providing users with a virtual assistant to navigate the tax preparation process. Both also offer electronic filing of tax returns. Users can also print out returns and file by mail if they aren’t comfortable with e-filing.

Stan Veliotis, associate professor and area chair, accounting and taxation at Fordham University’s Gabelli School of Business, said tax software programs such as TurboTax and H&R Block can handle most tax filers’ returns. Some taxpayers who might have very complicated or unusual investments, such as overseas holdings, may still need to seek out in-person, professional help. The software programs “handle about 95% of people’s taxes,” he said.

No matter which software you pick, Veliotis said it’s worth it to stick with the same software through the years for efficiency since users only have to input their data once. He has used H&R Block’s software for about 20 years and likes how it rolls over the previous year’s data so the prep work is already done. He says the first year he used the software, it found an error in a previous year’s tax form — when he did his taxes by hand.

How TurboTax works

TurboTax is widely known for its user-friendly interface, which makes it easier for people who aren’t familiar with taxes to file their returns easily, Farrington said. For people with straightforward situations, such as a single person with no children and one full-time job where they receive a W-2 tax form, it may be a preferred choice.

The interface uses an interview-style process where it asks the user questions as it guides you through all the tax sections. The language is easy to understand, even if you aren’t familiar with tax terminology. A banner at the top shows you where you are in the process.

Pros and cons of TurboTax

Like any piece of tax software, TurboTax has its pros and cons.

TurboTax pros

• Direct integrations with banks, brokers and crypto firms make transaction imports seamless. You can upload documents and take photos of tax documents, saving time versus manually inputting data.
• The software can handle a variety of tax situations.
• If you’re feeling stuck, you can reach out to TurboTax’s live, online tax professionals, although additional fees may apply, depending on the package.
• TurboTax guarantees it will get you the maximum refund and says that it will pay penalties and interest if there’s a calculation error.

TurboTax cons

• Costs may be higher compared to other tax software options, most notably for the versions that cover specialty tax needs such as rental properties or self-employment.
• Some users may find that the level of automation leads to less direct interaction with a tax professional.
• Users of the lower-price packages will frequently receive prompts to upgrade.

How H&R Block works

Much like TurboTax, H&R Block offers a clear, simplified way to file taxes, said Karla Dennis, enrolled tax agent and founder of KDA, an accounting and tax services firm.

The software guides users through the different tax questions, and embedded links can provide further guidance for users who want more details. H&R Block’s language is more formal than TurboTax, which might feel more daunting for those without basic tax knowledge. Like TurboTax, H&R Block’s tax professionals can answer questions online through the chat portal available at each step. A banner keeps track of your progress.

The software makes it easy to integrate data from employers (if they participate) and financial institutions. Like TurboTax, you can upload documents and take photos of tax documents, saving time from manually inputting data.

“It caters to small business owners and self-employed individuals, supporting Schedule C income and business-related deductions,” Dennis said.

Similar to TurboTax, H&R Block also offers an accuracy guarantee and will reimburse users for penalties and interest due to software errors. Unique to H&R Block is access to in-person help in their offices for a fee.

As a sophisticated user, Veliotis uses H&R Block’s software to model out potential tax consequences and tax planning for the next year. He’s used it to estimate the tax impact of selling a stock he owns in the current year versus waiting for the next year, as an example. “That’s really convenient,” he said.

Pros and cons of H&R Block

Like TurboTax and other tax software options, H&R Block also has several pros and cons.

H&R Block pros

• Its Second Look service allows users a chance to review and potentially increase prior-year refunds.
• The Refund Advance option lets users get an advance on their tax refund via a no-interest loan, although this feature is not available if you use H&R Block’s online products.
• H&R Block’s free version supports more forms and situations than the free version of TurboTax.

H&R Block cons

• H&R Block’s interface may be less intuitive for some users than TurboTax, although it is still relatively easy to navigate.
• Depending on the complexity of the tax situation, costs may vary, potentially making it less budget-friendly for certain individuals.
• Just like TurboTax, there can be frequent prompts to upgrade services.

TurboTax and H&R Block prices

The two companies have different pricing tiers for their different products. Keep in mind that these services will sometimes discount products, so prices can change. Also, both have options for an in-house tax professional to prepare your taxes for an additional cost.

TurboTax pricing

H&R Block pricing

Customer support: TurboTax versus H&R Block

The availability of support from either of these companies may depend on the selected plan. Both offer online and chat support. TurboTax has community forums, and H&R Block has an option for in-person support at physical offices.