Will H& r Block’s Free Service Work For You
H& R Block’s free software is suitable for a lot of people. If you don’t have income to report outside of your salary, then you should be all set to opt for the free version. This holds true even if you have some tax credits to claim or reconcile.
But once your tax situation gets more complex, the free software becomes less viable. You may need to upgrade to a tax-filing software package that will cost you if any of these things apply to you:
- You want to itemize your deductions on your tax return rather than claim the standard deduction .
- You worked as a freelancer and have numerous business expenses to report and deduct.
- You own income properties and have rental income and expenses to reconcile.
- You own a small business.
- You had a lot of activity in your brokerage account, such as if you sold stocks or cryptocurrency.
- You contributed to a health savings account in 2021.
Another thing you should know is H& R Block’s free software will not give you access to live help. If you need support filing your taxes, you’ll need to prepare to upgrade to a different software.
But that doesn’t necessarily mean you’ll pay a fortune. H& R Block offers its Deluxe Online software starting at $29.99, and it provides many capabilities its free version doesn’t.
Get Your Federal Tax Refund Fast
Not only have we tried to make it as painless as possible to prepare and file your return, filing electronically will also get your tax refund much faster. After all, it’s your money. Why wait any longer than necessary to get it back.
At E-file.com, we work to get your federal tax refund as fast as possible thanks to the electronic filing program with the IRS. Filing electronically with the IRS and selecting to have your refund direct deposited to your bank allows you to get your refund as fast as possible.
Don’t Forget H& r Block’s Other Plans
For those who don’t qualify for H& R Block’s free tax preparation plan, there are others to choose from.
The H& R Block Deluxe plan is $29.99 for federal filing and $36.99 for each state. By comparison, the TurboTax Deluxe plan costs $39.99 for federal filing and $39.99 for each state. This program is ideally suited for homeowners who pay real estate taxes, make charitable contributions, and use a Health Savings Account .
The Deluxe plan also includes DeductionPro to help you optimize donations for the most deductions. Other benefits to using this plan include access to six years’ worth of tax returns and technical support, by both chat and phone.
Meanwhile, the H& R Block Premium plan is for freelancers, contractors, and investors. This is the one you should use if you have income with expenses of less than $5,000, or have stock sales or rental property income. The Premium Plan is $49.99 for federal filing and $36.99 per state. These prices compare favorably to TurboTax Premium, available for $59.99 and $39.99, respectively.
There is also an H& R Block Self-Employed plan which costs $79.99 for federal filing and $36.99 for each state. TurboTax’s similar plan is priced at $89.99 and $39.99, respectively. The Self-Employed plan is for those with small business expenses, including home office, depreciation, and vehicle expenses.
H& R Block also has brick-and-mortar stores where you can have agents assist you with your filing. These H& R Block in-person packages start at $49.
Recommended Reading: Sales Tax And Use Texas
No Matter How You File Block Has Your Back
File A Tax Return Without Paying A Dime
If you have a simple tax return, H& R Block has a service that allows you to file both a federal and state tax return at no cost. The free software also allows you to file Schedules 1 and 3 with your 1040.
As a quick refresher, Form 1040 is the individual tax return form filers use. Schedule 1, meanwhile, allows taxpayers to report adjustments to income that can’t be entered directly on Form 1040 , while Schedule 3 lets you claim additional tax credits and payments.
The latter is important, because this year, a lot of people may seek to claim tax credits like the Earned Income Tax Credit or Child Tax Credit. While the Child Tax Credit was partially paid in monthly installments last year, recipients will need to claim the remainder this year.
Recommended Reading: Sc State Tax Refund Status
What You Get From H& r Block’s Free Version
Like the free tax software from most of its competitors, H& R Block Free lets you file Form 1040, take the earned income tax credit and reconcile your advanced child tax credit. It can handle unemployment income and help you to claim a missing stimulus payment.
H& R Blocks free version also lets you file schedules 1 and 3 of Form 1040, which is a big bonus because many taxpayers need to file those forms to report things such as deductible student loan interest, certain retirement contributions, alimony, the lifetime learning credit and the savers credit. You may need to upgrade if you don’t know how much to claim for those things and want the software to calculate it for you.
While H& R Block’s free version has expanded capabilities, if you plan to itemize deductions, were a landlord, freelanced, sold cryptocurrency, contributed to an HSA, ran a small business or had any other situations going on, youll probably need to upgrade to one of H& R Blocks paid packages.
See What H& r Block Free Online Has To Offer
Take a look at the following features of H& R Block Free Online.
1 More forms for free
H& R Block Free Online includes many popular forms for free in fact, we let you file more forms for free than TurboTax Free Edition.
For example, students who want to claim the student loan interest deduction might find H& R Block Free Online the best free tax preparation vs. TurboTax Free Edition, because this deduction isnt covered in TurboTax Free Edition. Read more about how TurboTax Free Edition and H& R Block Free Online tax filing stack up.
2 Easy document uploading, including W-2 photo capture
Uploading important tax documents has never been swifter at Block. Send a picture of your W-2, and well put all your information where it needs to be so you can start your free tax preparation instead of spending time filling out each item, line by line.
3 You could switch in as little as two clicks
Its simple to switch. If you used the other guys before, uploading last years return is no problem. Simply import your return from TurboTax, TaxAct, Credit Karma or any other tax preparation service and youre set.
4 Tax guidance and support
With H& R Block Free Online, well make sure youre well informed and confident every step of the way, with answers to commonly asked questions and tips for hundreds of credits and deductions.
5 Refund results in real time
6 A guaranteed accurate tax return
Simplicity, transparency and a brand that stands behind its work. What else would you want?
Also Check: Do I Pay Taxes On Social Security
H& r Block Pricing Changes
Like many tax prep software providers, H& R Block raises its fees as Tax Day approaches. The step-up date varies yearly and generally isnt revealed well in advance. As such, it pays to begin your return as early as possible, even if you dont have everything you need to complete your return.
On the bright side, H& R Blocks pricing is transparent. You know your final price as soon as you select a plan.
You can select any of the available plans to start. If you attempt to do something your current plan doesnt support, H& R Block prompts you to upgrade and doesnt allow you to continue your return until you do. But its best to choose the least expensive plan you think you need to start.
Upload Tax Documents To Speed Up The Process
H& R Block is one of the easiest online filing software packages. It allows users to upload tons of forms including 1099-NEC, 1099-MISC, 1099-INT, W-2 forms, and much more. If the form is standard, you can upload it in H& R Block. Users can even snap pictures of their forms and upload them using H& R Blocks app. When they are ready to file, the software will glean what it can from the photos and automatically fill in the details.
Read Also: What Is The Maximum Tax Refund You Can Get
Local Nonprofit Partner: Cash Oregon
Through our Safety Net Fund we partner with local nonprofits to help provide free tax preparation services for families throughout our region. For free tax preparation services in Oregon, connect with Metropolitan Family Service’s CASH Oregon.Program requirements include:
- Your household income is below $57,500
- You don’t own rental properties.
- Adjustments on education expenses
- Self-employed income with any of the following ($35K in expenses, a loss for the year, invetory, employees, depreciation or amortization or business use of the home.
Who Should Use H& r Blocks Tax Service
H& R Block offers an easy-to-navigate interface with clear, jargon-free guidance and many ways to access extra help. Its a premium product with a price tag to match, so its best for people who want extensive help options and those who qualify to use the free version.
If you have a complicated tax situation, then TurboTax might lead you through the process better though prices are slightly higher. TaxSlayer could be a good program for confident filers who dont need tax guidance and want the lowest-cost option.
Don’t Miss: Amended Tax Return Deadline 2020
Best Free Tax Filing Service: What To Consider
When selecting a free online tax filing service, it is important to know what you are getting and what you are not getting from the filing service. Consider these essentials:
Accuracy. As you search for the best free tax-filing services out there, remember this: the most critical part of any tax service is the accuracy it provides to the tax filer. Mistakes on a tax return, even small ones, can become costly in the long term if they lead to fees and audits.
Simplicity. You could sit down and file your return using paper forms. But, really, who wants to do that anymore? The best free online tax filing programs make preparing your return easy by providing simple ways to input your information and helping you understand what youre completing.
What Forms Does H& r Block Offer
H& R Block’s free offering lets you file your federal and state return for free. Keep in mind that this only covers basic returns, however. These include the traditional 1040, Schedule EIC, and Schedule 8812.
You can also use this package with other common tax forms such as Form 1099 , 1098 and 1095 . If you require other forms, you’ll need to upgrade to a paid plan.
Recommended Reading: Selling House Capital Gain Tax
Who Should Use H& r Block
For DIYers, H& R Block makes tax preparation simple by walking them through the process with interview-style questions, clear instructions, and in-depth explanations for different income types, deductions, and tax credits.
Customers can prepare their tax returns online, have their DIY return reviewed by an expert, or turn their return over to a virtual tax pro to handle preparation and filing from start to finish.
This range of options makes H& R Block a good tax software tool for people who want to try filing on their own, but also want the option to call in professional help if they have questions or get stuck.
Troops Families Can Access Free Tax
Rather than paying a tax specialist, servicemembers and their families can obtain free assistance to prepare and file their annual tax returns through a special military program. Participants can visit their installation tax center for free assistance in filling out tax returns, he said, or access the Military OneSource Web site, www.militaryonesource.com.
Free tax-filing assistance services are open to active-duty and reserve component servicemembers, as well as family members and military retirees.
Don’t Miss: How To File Taxes For 2020
What Is Online Tax Filing All About
First, lets clarify what we mean by this service. Online tax filing is a popular way to complete your taxes on your own. Instead of working with a tax professional, you use an online program to answer questions about your tax situation for the specific tax year to prepare your tax return. Once youve completed your return, the program sends it to the IRS electronically through an e-file service.
While the goal of all online tax filing options is to help you complete your taxes, how well they accomplish that goal and your experience can vary greatly.
H& r Block Basic Version
Price: $19.95
Uses: The Basic version is a good choice for filers who have simple returns and take the standard deduction. The catch: You dont get a free state filing option, only federal is included. To include state filing, youll pay an additional $39.95 for software or $19.95 for an e-file.
Features: With the capability to effortlessly import W-2s and last years return, the Basic software is a solid option for those who file basic returns and dont itemize deductions. Other features include the capability to import from TurboTax and Quicken software. You can also check your audit risk, as well as use up to five free federal e-files, plus unlimited federal preparation and printing. Because youll have to pay extra for state software and e-filing, H& R Block recommends the Basic software for those who dont need to file a state return.
Read Also: How Much Do You Have To Make To Claim Taxes
What Do You Get With H& r Block
- Easy tax form import and upload. This is one of H& R Block’s best time-saving features. In a matter of seconds, you can upload a PDF version of your tax form or import it from your employer, bank, or investment company.
- Mobile version. Work on your taxes on the mobile or web versions, or switch back and forth.
- Step-by-step guidance. This is something H& R Block excels at. Any time you’re required to answer a question or provide a number, one click will populate a side-bar with a helpful explainer that breaks down, in layman’s terms, what it means.
- Option to upgrade for live support. Pay extra and you can consult a tax expert, or hand off your documents to a professional to prep everything for you.
- Multiple refund options. You can get your federal refund deposited into your bank account, sent as a check, or loaded onto a prepaid debit card. You can also use your refund to buy an Amazon gift card in increments of $100 and H& R Block will add on a 3.5% bonus. This is probably only worth doing if you have a large refund, otherwise the bonus is negligible.
- Tax return storage. H& R Block will store your finished tax returns in your account for up to six years.
- Accuracy guarantee. H& R Block will pay IRS penalties and fees related to calculation errors up to $10,000. If it’s determined that you entered information improperly, the guarantee does not apply.
Unless you qualify for the free package, you’ll pay at least $49.99 plus an additional $36.99 per state return.
Premium & Business Edition
H& R Block also offers a Premium & Business online edition to serve the more than 60 million freelancers, independent contractors, and other self-employed taxpayers, including the estimated over three in 10 Americans who rely on gig work for their primary income. Among its features are an import of Uber driver tax information and full support for common tax situations faced by self-employed individuals. This product costs $115 including a state return, plus an additional $45 for each additional state tax return. Like the Premium version, the Premium & Business edition also includes support for rental property owners.
Read Also: How Are Taxes Calculated On Paycheck
How H& r Block Online Works
H& R Blocks platform uses a semi-guided approach to navigate you through the process of filing your state or federal taxes.
The interface will ask you questions and, as you answer them and upload the relevant forms, the system will prepare your tax return for you.
- Getting started: When you open the platform, start by entering all your personal and tax information. The platform will take you step-by-step through the process of adding info about your residency, dependents and so forth.
- Review: After completing a session, you will have an opportunity to review the information you added to ensure there are no mistakes and that you left nothing out.
- Filing status: Upon completion of this segment, the platform will assign you a filing status, for example, head of household.
- Tax info: Then, the software will guide you through the process of entering all information about your income, deductions and credits. It will also ask you about situations that may apply to you and affect the tax return you receive.
- Documentation: After entering all the information, the software will ask you to upload any miscellaneous documents that you havent uploaded yet. Then the software will generate your tax return.
If you are a paying customer, you may be able to store the return for future reference before submitting it.