TurboTax Versus H&R Block

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With its easy-to-use, interview-style interface and slew of features that help you get the most out of your tax return, TurboTax has become the premiere online tax service to use.

How Does TurboTax Work

TurboTax may be one of the easiest tax preparation services around. First, it gives the option of either online or software-based work, so you can download the software to your desktop if you aren’t comfortable doing things online. The online version, however, lets you sign in from any device — computer, phone, tablet — to start up, continue or finish your tax return.

TurboTax also offers an easy-to-use, interview-style tax preparation system. You click through questions like, “Did you move this year?” or “How old are your kids?” and TurboTax creates a filing with optimized deductions based on your answers. It’s a much easier and simple process than having to fill out forms online.

If you have questions while filling out your tax return, the online version of any of the paid packages includes SmartLook. SmartLook answers your questions, gives you insight on deductions and credits you may be missing, and keeps you informed through a real-time one-way video with a tax expert from TurboTax. The tax experts are all certified and have access to your screen, so they can more easily answer your questions.

You can also add on a state package to any federal filing for $29.99 per state. State filings work the same way that federal filings do on TurboTax.

Once your taxes are filed, you can choose how to pay your taxes or how you want to receive your refund. If you have a refund coming, TurboTax also allows you to deduct the cost of the service directly from your refund.

What Makes TurboTax Stand Out

Online tax preparation services are getting more advanced, so some of the features that TurboTax offers are also offered by other services. There are a few, however, that help it stand out from the pack.

The interview-style tax preparation is a great bonus for people who hate doing taxes. Other services do offer similar styles, but TurboTax’s is the easiest and most intuitive that we’ve seen.

In addition, the SmartLook option is something we’ve never seen on any other online tax preparation service. Being able to ask real-time questions to a tax expert while you work on the TurboTax system is a huge benefit, and takes a lot of the guesswork out of doing your taxes. It also might help you optimize your deductions, so you can get a bigger refund.

Common TurboTax Reviews

TurboTax is the gold standard in online tax preparation, so it generally gets pretty solid reviews from both the professional consumer review sites and its users. The professional reviewers pretty consistently give TurboTax five out of five stars, with few exceptions. Most are really impressed with the user interface and the support TurboTax offers.

Users also have high praise for TurboTax in their reviews, with most commenting on the ease of use and simplicity of the filing process. Some users were upset that, in some cases, if you pick a plan and your taxes become more complicated along the way, TurboTax won’t notify you until the end that you owe more.

For example, if you try to use the Free Federal package, and end up having complicated deductions or investments, it will notify you at the end that you need to pay for the Deluxe or Premier package. TurboTax should notify you when you cross that threshold, not when you are completely done with your taxes.

Is TurboTax Right For You?

TurboTax is an impressive online tax preparation service, and so many people will find it a great fit for them. There are, however, a couple situations where another service might be more appropriate. Here are some questions to ask before deciding on TurboTax:

  • Does filing out forms stress you out?
  • Do you have an easy tax return?
  • Do you have a budget when it comes to your taxes?
  • How much help do you need?

The first question is pretty easy; filling out forms usually stresses everyone out. However, if you don’t mind filling out the forms yourself, you could probably save some money by doing your own taxes or having a less-expensive company do your taxes. If you dread the idea of even looking at tax forms, TurboTax’s interview-style preparation is a nice relief and makes doing taxes a little bit easier.

If you have an easy tax return, you can pretty much use any tax service to file your federal taxes for free. In this case, you don’t have to go with TurboTax, but if you like the interview-style preparation, you might as well since it’s also free.

It depends on what your budget is, but TurboTax is one of the more expensive online tax preparation services, so going with a service like TaxAct, which offers just the bare bones for a lower price, might be a better option.

If your taxes are super complicated, TurboTax’s SmartLook is a great tool to have, as you can pretty much ask anything and get a direct answer. Just keep in mind that it is not offered on the Free Federal package.

About the Author

Jeff Hindenach

Jeff Hindenach is the co-founder of Versus Reviews. He graduated from Bowling Green State University with a Bachelor's Degree in Journalism. He has a long history of journalism, with a background writing for newspapers such as the San Jose Mercury News and San Francisco Examiner, as well as writing for The Huffington Post, New York Times, Business Insider, CNBC, Newsday and The Street. He believes in giving readers the tools they need to get out of debt.

H&R Block is pretty much a no-brainer for anyone looking for superior tax prep service without having the hire an actually account. With its slew of features, tools and extras, it makes doing your taxes really easy and efficient, and will make sure you get the most from your refund or find ways to cut down on your tax bill.

How Does H&R Block Work

H&R block works exactly how you would expect it to. You start the tax process for free, where you can import your W2 with the click of your phone’s camera. H&R Block can also import all your tax information from the previous year’s return. Once that is all set, you will be asked a series of questions about your life, your finances and your family to make sure you are taking the proper deductions and credits.

H&R Block will keep a running tally of how much your refund will be and how you much you will owe based on the answers to the questions. Once you finish, it will calculate how much you’ll get or owe, and let you know which package you will have to buy, based on your return. It will also give you the option to transfer the same information to you state filings. Once that is all completed, you can pay for the services and H&R Block will file your taxes.

If you have any questions during the tax prep period, you can reach out to H&R Block through phone support, or go to one of its local offices and set up a time with a tax professional to go over your taxes in person.

What Makes H&R Block Stand Out

One thing that makes H&R Block stand out the most is its slew of guarantees. First, it offers a Maximum Refund Guarantee, which will refund the fees you paid to H&R Block if you find a different preparation method that would give you a larger guarantee. H&R Block will also let you change your tax filing for free to get the larger refund. The only stipulation is it has to include the exact same information you gave to H&R Block.

The second guarantee the 100% Accuracy Guarantee, which will pay for any penalties you receive from the IRS for miscalculations made by H&R Block, up to $10,000. The last guarantee is an Audit Support Guarantee, which provides you with a walk-through on how to deal with an audit. If you aren’t satisfied with the walk-through, H&R Block will refund what you paid for its services.

Recently, H&R Block also offered tax preparation by IBM’s Watson, the super-computer that went to head to head with a Jeopardy champion. It is only available for in-office tax preparation, but it combines the power of a super-computer with the knowledge of a tax representative to make sure you are getting the maximum refund, or the owe the least amount.

In addition, H&R Block also has the Second Look Review, which will do a deep dig into your previous year’s tax return to see if you could have received a higher refund. If so, H&R Block will file the paperwork to get you the money you are owed.

The best feature that H&R Block offers is the advance on your refund. If you have done your taxes and H&R Block knows you are getting a refund, you can get up to $1,250 in an advance on your refund, which is great for anyone who is waiting on a refund to pay some bills.

Common H&R Block Reviews

With its slew of features and tools, H&R Block usually gets stellar reviews from professional consumer product review sites, generally landing 4/5 out of 5 stars. Reviewers are especially impressed with the Second Look review and the guarantees that H&R Block offers.

Customer reviews are actually mixed, mostly because most online user review forums don’t separate the online product from the in-person product. The in-person product tends to get negative reviews because human interaction and human error play more of a role. Since the online service is automated, it tends to get higher reviews from users.

Is H&R Block Right For You?

This is a pretty simple question, since H&R Block offers so many great features and options for you to choose from. The question really is whether you are willing to pay for H&R Block’s services. If you don’t mind spending a little extra (although the prices are inline with what TurboTax charges), H&R Block’s features, tools and support are a great fit for anyone who is looking to get the most out of their taxes.

About the Author

Jeff Hindenach

Jeff Hindenach is the co-founder of Versus Reviews. He graduated from Bowling Green State University with a Bachelor's Degree in Journalism. He has a long history of journalism, with a background writing for newspapers such as the San Jose Mercury News and San Francisco Examiner, as well as writing for The Huffington Post, New York Times, Business Insider, CNBC, Newsday and The Street. He believes in giving readers the tools they need to get out of debt.