TurboTax vs. H&R Block for 2024 (Tax Year 2023)

TurboTax vs. H&R Block: The Ultimate Tax Software Showdown for 2024 (Tax Year 2023)

Is TurboTax or H&R Block Better?
H&R Block: A Trusted Tax Partner
TurboTax vs. H&R Block: Which Free Version is Better?
TurboTax vs. H&R Block: Costs and Fees

As tax season rolls around for the year 2023, taxpayers are often caught in the dilemma of choosing between the two giants of tax software: TurboTax and H&R Block. This 2024 comparison guide aims to break down the strengths, weaknesses, and unique features of both, helping you make an informed decision for your tax preparation needs.

The 2023 tax season brings a variety of tax software options to the table. Among them, two stand out based on our editor’s ratings as industry stalwarts: H&R Block and TurboTax.

TurboTax has been a trailblazer in the field of tax preparation software, while H&R Block has historically been recognized for its in-person tax preparation services. Currently, both companies have expanded their offerings to include online tax preparation and tax software, along with two tiers of tax assistance.

Is TurboTax or H&R Block Better?

If you’re a QuickBooks user, TurboTax could be your go-to option. Being products of Intuit, the seamless integration allows you to effortlessly transfer your financial data from QuickBooks directly into your tax forms.

On the other hand, if you’re seeking a high-quality experience at a more affordable cost, H&R Block might be the better choice. Not only are their DIY filing options generally more budget-friendly than those of TurboTax, but H&R Block also slightly surpassed TurboTax in our overall ratings.

While TurboTax is known for its engaging and interactive user experience, H&R Block stands out with its online tax platform that is more streamlined, cleaner, and minimizes distractions.

TurboTax: Simplifying Tax Preparation

TurboTax’s online platform is versatile and consistent across devices, enabling you to manage your taxes from any computer or even on the go using the TurboTax app on your phone.

The DIY service provided by TurboTax meticulously guides you through various tax deductions and income sources. This thorough walkthrough is particularly comforting for those who feel anxious about tax filing, offering a sense of being expertly guided and informed. For additional support, there’s the option to pay for direct access to a tax advisor.

A notable feature of TurboTax is its ability to scan tax documents, which not only minimizes the likelihood of errors but also streamlines the data entry process. The platform saves your progress, allowing you to pause and resume where you left off. If you decide you’d rather not complete the return yourself, TurboTax offers a paid service to finish it for you.

TurboTax is proactive in suggesting upgrades to more comprehensive packages, though this can sometimes feel overwhelming due to frequent prompts.

While the guided journey in TurboTax is thorough, it can sometimes feel tedious, especially with questions that may not pertain to your tax situation. Navigating to specific sections if you wish to skip ahead isn’t always straightforward, which might pose a challenge if you’re confident in your tax knowledge and prefer a more direct approach.

Pros:
User-Friendly Interface: TurboTax is renowned for its intuitive and straightforward interface, making it ideal for first-timers and those who prefer a guided tax filing experience.

Robust Support: Offers live CPA or EA assistance, enhancing the accuracy and reliability of tax filing.
Comprehensive Coverage: Excels in handling complex tax situations, including investments and self-employment.

Cons:
Higher Cost: Generally, TurboTax is more expensive than H&R Block, especially for advanced features.
Upselling Tactics: Users often encounter prompts to upgrade for additional services.

H&R Block: A Trusted Tax Partner

H&R Block’s online platform is more streamlined and straightforward compared to TurboTax’s. It efficiently gathers all necessary information with minimal distractions and without aggressive upselling. The online filing portal of H&R Block is more direct with fewer initial questions and options, yet it provides the flexibility to delve deeper into details whenever required. Originally known for its physical office presence, H&R Block has successfully transitioned into offering a robust DIY tax-filing online platform.

For those who desire it, there is the option to pay for access to a tax expert. H&R Block also offers a service to handle your tax forms for you. However, many users find the online tax prep portal so user-friendly that they don’t feel the need for additional human assistance. The software conveniently saves your place, allowing for breaks in your tax filing process. It’s important to note that data entry in H&R Block’s software follows a specific sequence, and it offers less flexibility to skip around compared to TurboTax.

Overall, H&R Block’s software is a more economical choice than TurboTax and stands as an excellent alternative for those seeking a simpler, more cost-effective tax filing solution.

Pros:
Cost-Effective: H&R Block typically offers a more budget-friendly option without compromising on the essential features.
Physical Branch Access: Unique to H&R Block, taxpayers have the option to visit physical branches for in-person assistance.
Versatility: Efficiently handles a wide range of tax situations, from simple to moderately complex.

Cons:
Less Intuitive: Some users find the interface less user-friendly compared to TurboTax.
In-Person Assistance Costs: While available, in-person support can be more expensive.

Head-to-Head: Feature Comparison

Ease of Use
TurboTax: Takes the lead with its interactive and easy-to-navigate interface.
H&R Block: Offers a straightforward approach but slightly lags in user-friendliness.

Pricing
TurboTax: Higher-tier plans can be pricey.
H&R Block: More budget-friendly across various tiers.

Customer Support
TurboTax: Exceptional with its live expert support.
H&R Block: Offers both online and in-person support, a unique advantage.

Accuracy and Reliability
Both TurboTax and H&R Block offer accuracy guarantees, ensuring that your taxes are calculated correctly.

TurboTax vs. H&R Block: Which Free Version is Better?

Both H&R Block and TurboTax provide options for free tax filing without any income restrictions. It’s worth noting that the IRS also extends free online filing to individuals earning less than $73,000.

When using the free online version of TurboTax for straightforward tax returns, be prepared to encounter frequent prompts to upgrade to their paid plans, which might not be applicable to all taxpayers. The income types supported in this free version include W-2, unemployment benefits, retirement distributions, and certain forms of 1099 interest and dividends. Additionally, state return filing might also be free, and the platform allows for claims such as the earned income tax credit and the child tax credit.

Conversely, H&R Block’s free online service allows you to file a basic return that covers similar income types as TurboTax, excluding 1099 income, and includes one or more state returns. A notable advantage of H&R Block’s free version is the inclusion of deductions for student loan interest and tuition fees, which TurboTax’s free version does not offer.

Another key feature available at no cost with both TurboTax and H&R Block’s online versions is e-filing. This convenient option not only saves postage costs but also ensures the secure and prompt delivery of your return. For those expecting a refund, e-filing can expedite the IRS’s processing of your payment.

TurboTax vs. H&R Block: Costs and Fees

Even after accounting for discounts, H&R Block typically offers more affordable options than TurboTax for similar products.

There are several circumstances where upgrading to a paid plan with either TurboTax or H&R Block might be necessary. The paid versions generally offer a more user-friendly experience. Additionally, the free versions have limitations, such as not supporting some common deductions or specific types of income reporting.

In their paid versions, both H&R Block and TurboTax provide the feature to upload tax documents directly, which is a significant time-saver, especially if you have numerous W-2s and 1099s. TurboTax further enhances convenience with its mobile app, allowing you to photograph and upload documents directly within the app.

Price-wise, H&R Block consistently offers more competitive rates across various categories of its online software. Here’s a breakdown of the costs associated with filing using different types of deductions and income:

Making Your Choice
Ultimately, your choice between TurboTax and H&R Block for the 2024 tax season (filing for the tax year 2023) depends on your specific needs and preferences. If you prioritize an intuitive interface and extensive support, TurboTax might be your best bet. However, if cost-effectiveness and the option for in-person assistance are more your speed, H&R Block could be the ideal choice.

Both TurboTax and H&R Block offer robust solutions for tax filing, each with its unique strengths. By assessing your personal tax situation and preferences, you can choose the software that best fits your needs, ensuring a smooth and accurate tax filing experience for the year 2023.