In a crowded tax filing marketplace, how does H&R Block set itself apart from the pack? It offers a free online filing service (among other competitively priced products). Yes, you heard that right. It’s entirely free. But is saving a few bucks a wise choice when it comes to your taxes? What other affordable options does H&R Block offer?
FYI, our article is updated for 2022 with reviews of the tax products for the 2021 tax season.
Article Overview
- Rating, Pros & Cons
- Offerings Through H&R Block
- 2022 Tax Solutions
- Coupon Code
- About H&R Block
- Stephen Colbert Goes Undercover As H&R Block Tax Pro (Video)
- What Else Should I Consider?
H&R Block
Pros
- Affordable federal return filing fee for such a big name software
- Free federal e-filing of the 1040EZ
- Allows for five e-files when the software is purchased directly
- Offers professional audit defense and a professional tax consultant service
- Offers Affordable Health Care Act (ACA) assistance for calculating tax credits/penalties
- Provides support via telephone, email, live chat and offers tutorials and FAQs for users
- Import W-2 forms & 1099-B forms from participating institutions
- Mobile version available
- Less expensive filing for state returns
- Face-to-face support options by going to an office
Cons
- Online support isn’t as detailed as others
H&R Block Business Areas
H&R Block specializes in a number of different areas of business including retail tax services and digital tax services.
H&R Block Retail Tax Services
Despite the increasing trend towards filing taxes online rather than at retail locations, H&R Block still has a number of retail locations. Retail locations are located throughout the country and allow for individuals to have an accredited tax professional look over and file personal and business tax returns.
H&R Block retail locations are most popular among those who have difficulty filing their own taxes or those who don’t have the time to do it themselves. The retail locations are also a great feature for people with complicated returns, like small business owners or people with rental properties.
Digital Tax Services
The digital tax service market is perhaps one of the most utilized tax filing solutions. H&R Block offers a number of online and software based digital tax services. One of the most appealing factors in the H&R Block digital tax service is that in at least one of its online filing options, clients can complete their filing online and still have a tax professional review their return before filing. Additionally, the H&R Block online tax solution allows for many to file their federal taxes for free.
H&R Block Editions Compared
The 2022 version of H&R Block Tax (for the 2021 tax year) allows users to choose between downloading software to their computers or directly accessing online software databases (online editions). It really depends on your specific needs in choosing the online vs software version, and we’ll try to spell those out for you below.
One notable difference across the board: all of the downloadable software versions charge an additional $19.95 fee to electronically file your state return. And that can get expensive, depending on the edition you’re using.
All online and software filing editions of H&R Block offer:
- Free e-filing for your federal return (5 free e-filings with the downloadable edition)
- Affordable Care Act related tax forms
- Automatic import of your W-2 form
- Free in-person audit guidance (in-person audit support additional fee)
- 100% accuracy guarantee
- Maximum refund guarantee
- Eligibility for Refund Bonus offer
H&R Block Online – Features And Pricing
Here is a pricing comparison of the various online editions, with tax season discounts factored in (may not be available).
Here is a comparison chart of the software benefits and filing options for the various downloadable editions.
| Free Online | Deluxe Online | Premium Online | Self-Employed Online | |
| Price (with discount if available) | $0 | $23.99 (regularly $29.99) | $39.99 (regularly $49.99) | $67.99 (regularly $84.99) |
| State tax prep additional fee | $0 | $36.99 | $36.99 | $36.99 |
| Earned Income Credit (EITC) |  |
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| Child Tax Credit (CTC) | |
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| Deduct student tuition, payments, and loan interest | |
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| Report your retirement income | |
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| Digitally organize all of your tax docs for up to six years | |
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| Access to live phone or chat tech support | |
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| Have a Health Savings Account (HSA) | |
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| Deduct real estate taxes and home mortgage interest | |
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| Organize contract, freelancing, gig work, and other self-employed income | |
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| Report stocks, bonds, and other investment income (Schedule D) | |
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| Report cryptocurrency sales | |
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| Claim rental income & deductions (Schedule E) | |
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| Claim your small business expenses | |
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| Report all business deductions and asset depreciation | |
H&R Block Software (Download) – Features And Pricing
Here is a pricing comparison of the various downloadable editions, with tax season discounts factored in (may not be available).
Here is a comparison chart of the software benefits and filing options for the various downloadable editions.
| Basic | Deluxe + State | Premium | Premium & Business | |
| Price (with discount if available) | $19.95 (regularly $29.95) | $44.95 (regularly $54.95) | $64.95 (regularly $74.95) | $79.95 (regularly $89.95) |
| Single or married | |
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| Have children | |
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| Maximize deductions | |
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| Have investments | |
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| 1 state return included* (state e-file available for $19.95/return) | |
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| Own rental property | |
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| Self-employed/1099 | |
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| Own a business | |
* Personal state programs are $39.95 each (state e-file available for $19.95). Most personal state programs available in January; release dates vary by state. State e-file not available in NH. E-file fees do not apply to NY state returns. Additional disclaimer for business e-files: State e-file for business returns only available in CA, CT, MI, NY, VA, WI.
Who Is H&R Block?
H&R Block, Inc. was founded in 1955 in Kansas City, Missouri and offers a range of financial products and services including banking services, business services, tax preparation and investments. Currently H&R Block is estimated to have more than 2,500 regular, full-time employees and as many as 90,000 seasonal employees. It has more than 10,000 offices across the country and 12,000 worldwide.
History Of H&R Block
H&R Block began as a concept when Henry W. Bloch, an Army Air Forces navigator, returned from World War II with a desire to begin a family business in Kansas City, Missouri with his brothers. It was 1946 when Henry first got the idea to begin a company that focused on serving small businesses by offering bookkeeping services.
Henry got together with his older brother, Leon, and the two borrowed $5,000 to open their business. Unfortunately, the business did not do well, and four months later Leon decided to pursue a law degree rather than struggle with the young business.
Henry was adamant that he must keep the business going and placed an ad in the local newspaper for assistance. As it turned out the response that caught Henry’s attention the most was from his mother, suggesting that he hire his younger brother, Richard.
The company stayed afloat with the two brothers working on both bookkeeping and income taxes although they soon realized that tax work was too time-consuming and decided that they wanted to limit themselves to bookkeeping only.
One of their clients at the time, an ad salesman for The Kansas City Star, John White, convinced them otherwise. White suggested that they run an ad in his paper offering $5 tax services and they did just that in January 1955. Out of this simple ad the brothers generated such a great response that H&R Block was born.
Just one year later the brothers would sell a franchise of their business to a couple of accountants in New York City and the company grew from there. In 1962 H&R Block went public and three years later in 1965 they opened their first tax training school.
Stephen Colbert Goes Undercover As H&R Block Tax Pro
Now for the most important part of this article – Stephen Colbert goes undercover as an H&R Block Tax Pro.
What To Consider When Filing Your Taxes With H&R Block Online
Depending upon which H&R Block online tax filing option you select there are a few considerations to make before selecting H&R Block. If you are looking for a tax filing service from a big name software that offers professional consultation services as well as retail filing locations then H&R Block may be the right choice for you. Learn more about H&R Block in our Interview with Shane Wilson.
H&R Block provides easy to use tax solutions that offer simple guidance through the tax filing process and good customer support. But how do they compare against other providers and how did we rank them overall? Find out in our comprehensive online tax provider comparison.
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