H&R Block is one of the most popular tax filing software options today, but is it right for you?
H&R Block allows self-employed individuals and business owners to file their tax returns online.
Moreover, it offers filers an option to have a tax expert review their return before submission.
H&R Block’s interface is straightforward and easy to use; one of its remarkable features is that it gives you step-by-step guidance as you file your taxes.
You can access the software from any device, and you can even visit one of the 12,000 H&R Block offices to have your file reviewed by a tax professional.
H&R Block is a great option, but other tax software may be more advantageous depending on your needs! This is what to look for in H&R Block alternatives.
Read on to see how H&R Block competes with the other best tax software to make the call for yourself.
Comparing H&R Block To Other Tax Software Products
Despite its great features, H&R Block may not suit your specific needs.
Fortunately, there are numerous alternative software options you can try. They include:
- CashApp Taxes
Before we dive deeper into what each of these software options has to offer, here's a quick overview:
Cash App Taxes
Free Version Details
Robust free tier with W2, Social Security, Unemployment, and more.
Only free for W2 and Social Security Income.
Free tier only include W2 income and educational credits.
Only free Federal filing this year, and limited to W2, Social Security, and unemployment income.
100% Free Fed
100% Free Fed and State
$0 - $84.99
$0 - $199
$0 - $47.95
$0 - $94.95
$0 - $22.98
Breaking Down H&R Block Tax Software
H&R Block offers four pricing options for federal tax filing, namely:
- Free Version - $0
- Deluxe - $55
- Premium - $75
- Self-Employed - $115
You'll also pay $49 per state tax return you need to file.
The major difference between H&R Block's plans is the tax situations considered during tax return filing.
Here’s a look at some of the features you'll get with H&R Block:
- W-2 import
- Limitless tax advice
- Access to past returns, up to six years
- Stride integration to enable form importation
The software supports the following tax situations, depending on the package you use:
- Child credit expenses
- Earned income credit
- Retirement plan income
- Child tax credit
- Social security income
In comparison to all the alternatives, H&R Block has the most robust free online tax filing option.
H&R Block vs. TurboTax
Both H&R Block and TurboTax offer a free package, covering simple returns. This package also allows you to file some additional forms and schedules.
With H&R Block’s free package, however, you can file more forms and schedules, including things like unemployment income and child tax credit.
You’ll also enjoy filing more state returns without paying a dime, while TurboTax’s free package only allows you to file one free state return.
For both providers, the Deluxe package includes deduction-finding tools, help with charitable donations, and access to tax professionals through online chat.
With TurboTax’s Deluxe package, you can file Schedule SE, Schedule C and Schedule C-EZ if you want to report your business income but don’t have any expenses to report.
Overall, TurboTax has the following pricing tiers:
- $0 Free Tier
- $59 Deluxe Tier
- $89 Premier Tier
- $119 Self-Employed Tier
You can also expect to pay $59 per state tax return.
While H&R Block is also easy to use, its questions and explanations can sometimes be confusing.
If you want a a software that's a little easier to use than H&R Block, consider TurboTax. But H&R Block has better pricing in most cases.
The only real exception is crypto. TurboTax has the most cryptocurrency integrations and is the easiest to use when it comes to crypto and NFTs.
H&R Block vs. TaxAct
H&R Block is slightly more expensive than TaxAct beyond the free version for Federal tax returns, but TaxAct is more expensive for state tax returns. Combining the two, you're pretty close on pricing.
Nonetheless, if you have to choose between their free versions, H&R Block’s free version may turn out to be a better choice - simply because it includes more options and a free state tax return, where TaxAct charges for a state filing.
It supports 1040 and Schedule A, while TaxAct’s free version supports only a simple tax return.
Related: Best Free Tax Software
TaxAct has the following pricing this year:
- Free basic version
- $46.95 deluxe version
- $69.95 premier version, and
- $94.95 self-employed version
They charge $54.95 per state, which is one of the highest in online tax software.
Both TaxAct and H&R Block are great options with intuitive interfaces that ensure everything runs well so you can spend as little time as possible doing your taxes.
From a customer support perspective, H&R Block would still be a better option, with over 12,000 physical offices across the country.
This can come in handy if you run into trouble and you want face-to-face customer support to get the issue resolved.
You should realize, however, that you’ll need to upgrade to H&R Block Deluxe or Premium to have access to in-person advice.
While TaxAct doesn’t have physical offices to offer face-to-face support, it has a comprehensive knowledge base to search for information about various tax issues. TaxAct also offers free phone and email technical and tax support on business days
Overall, TaxAct seems to offer a better deal, especially if you feel that its support options are adequate for your needs.
Nonetheless, you should take a closer look at H&R Block before you settle for TaxAct.
You may save some money while accomplishing more tasks with H&R Block’s free version thanks to its additional capabilities.
Also, if you need a lot of support, you may decide to pay more and have H&R Block.
H&R Block vs. Tax Slayer
TaxSlayer may be within your budget when it comes to filing your tax returns because TaxSlayer offers access to all tax forms at the first price-point - Classic.
But you’ll have to sign up for TaxSlayer Premium to access features that other providers offer in their basic plans, such as audit support and advice.
Nonetheless, TaxSlayer can still get the job done. If you are self-employed or own a small business, TaxSlayer can help you work through deductions and common issues you might encounter.
At its lower price points, TaxSlayer offers basic services at a cheaper cost than its competitors.
TaxSlayer has the following pricing tiers:
- Free version
- $34.95 classic version
- $54.95 premium version
- $64.95 self-employed version
You can also expect to pay $39.95 per state.
That discounted service also comes with fewer bells and whistles, but if savings is what you're after, and if you're familiar with tax filing, you could do well with this software.
And if you do spend more and opt for the Premium version, you get access to features like audit support, identity theft recovery, and more extensive customer support.
The differentiator here is small business owners. You get access to all of TaxSlayer's forms at their Classic Plan, which can be a significant savings versus H&R Block's Premium or Self Employed Plans.
H&R Block vs. FreeTaxUSA
FreeTaxUSA is a solid alternative to H&R Block because their pricing is competitive, and their features are just slightly behind H&R Block.
FreeTaxUSA offers the simple flat pricing: free federal filing and a flat $14.99 per state.
They also offer a Deluxe version for $7.99 which includes audit support.
The biggest drawback of FreeTaxUSA versus H&R Block Online is ease of use. H&R Block is very easy to use and navigate, while FreeTaxUSA is "close, but not quite the same". However, does that gap justify $40 to $100 or more in price difference? It's your call - but FreeTaxUSA is a competitive option to use instead of H&R Block.
H&R Block vs. Cash App Taxes
Cash App Taxes is one of the newest tax software options, but it's also the only option that is truly free for both Federal and State tax returns.
Cash App Taxes is the lowest priced tax software because they offer truly free federal and state tax returns. However, you may be disappointed in what free gets you.
Cash App Taxes doesn't allow for tax filing in multiple states, and doesn't support any foreign earned income. There may be other tax situations that it doesn't support as well.
Compared to H&R Block, Cash App Taxes also doesn't support any bank or brokerage imports. You can only import your W2 if your company supports it. The support you can get from Cash App Taxes is also very limited.
If you have any complexity in your tax return, H&R Block is probably the better choice. But for simple tax returns, Cash App Taxes is a compelling alternative.
Which Alternative to H&R Block Is Right For You?
H&R Block is a solid tax filing software that gives you the chance to have your tax return reviewed by a real human in a physical office.
This can help you feel more confident, especially if you are nervous about filing your tax returns.
H&R Block’s pricing starts at $0, thanks to its free edition. Nonetheless, you may still want to look at what other tax filing software options have to offer.
TaxSlayer and FreeTaxUSA offer the best value depending on needs, especially if you run a charitable organization, own a small business, and file your own taxes.
TurboTax is another solid option, especially for investors who trade crypto. However, it is a little bit more expensive compared to other services in its class.
Cash App Taxes is a great choice for people with a simple tax return.
It can be a great option for you if you run a small business and mix your business and personal expenses.
Moreover, any self-employed individual who is serious about doing their taxes will find a handy tool in TurboTax Self-Employed.
Robert Farrington is America’s Millennial Money Expert® and America’s Student Loan Debt Expert™, and the founder of The College Investor, a personal finance site dedicated to helping millennials escape student loan debt to start investing and building wealth for the future. You can learn more about him on the About Page, or on his personal site RobertFarrington.com.
He regularly writes about investing, student loan debt, and general personal finance topics geared towards anyone wanting to earn more, get out of debt, and start building wealth for the future.
He has been quoted in major publications including the New York Times, Washington Post, Fox, ABC, NBC, and more. He is also a regular contributor to Forbes.
Editor: Claire Tak