I have been using H & R Block tax software for many years, and despite minor complaints here and there, it meets my needs best. I keep using H&R Block because it does what I need and has always been cheaper than TurboTax. I buy the Deluxe version of H&R Block because it covers the mutual fund's sales, cost basis calculations are included (Schedule D, capital gains and losses), the form for Foreign Tax Credit from mutual funds is present (Form 1116), as well as stock sales. It also includes Schedule C (profit or loss from business) and Schedule K1 (K-1 S Corps) if you report personal tax gains or losses (i.e., not as a Corporation). You must buy the Premium software version to get this functionality in TurboTax.
INSTALLATION
~~~~~~~~~~~~~
* To download H&R Block software, click "View your item," a button on your order next to the "Buy it again" button. The "View your item" link takes you to the download page for H&R Block software and its product code.
* Does H&R allow the installation of the software on two PCs?
No. The license agreement that one needs to accept during the installation says this:
"Software copies. You may only install and use the software on one computer. You may copy the software for backup and archival purposes only, as long as the original and each copy are kept in your possession and control.
Upgrades. You must first acquire a valid License to the software to receive and use any Software upgrades. After you buy and install any Software upgrade, you may only use the upgraded version. You will no longer use the prior version other than for backup or archival purposes if you need to reinstall the software."
Under limitation, it also states that the software is for use by you and your immediate family members. You cannot sell, rent, loan, or transfer the product to someone else.
PRICE
~~~~~~
If you are looking for the best deal, Amazon often runs attractive promotions on Black Friday and a few other times between now and April. You can get notified about price drops by checking the camelcamelcamel site, which can send you emails when the price drops by the amount you specify. During the last tax year, the price fluctuated between $22 and the list price of $44.99, dipping below $30 several times. It also qualifies for digital credits for No-rush Prime shipping.
* WHAT IS INCLUDED
~~~~~~~~~~~~~
Using tax software includes two fees - one to use the software and the second one to e-file the returns with the IRS. This package includes the cost of using both the Federal tax return and State return for one state (if you need to file taxes in two states, you will need to buy the second state software at full price).
This package also includes the cost of 5 free Federal e-files, but it does NOT include the cost of an e-file for the state return. Note that there is no limit on how many returns can be printed on paper for either Federal or State returns, so you can print and mail any number of returns you desire.
* The state forms are not available as I write this review. The state form will be available on January 3, 2024. You can enter an email to be notified when it becomes available.
When the state forms become available, the state software can be downloaded directly from the H&R Block application from the first screen of the state tax preparation. There is no extra fee.
All updates of both federal and state software are free.
PROBLEMS
~~~~~~~~~~~~~
* If you bought an electric vehicle and installed a home charger, you can file Form 8911 to get a 30% credit for the alternative fuel vehicle refueling property you placed in service during the current tax year. H&R Block has a form for electric vehicle purchase credit but DOES NOT have the 8911 form for the charger. The interview does not include the charger question.
* I ran into an issue trying to save my return as PDF995 (i.e., as PDF). Reinstalling PDF995 software (it comes with H&R Block software) did not help. When I looked under Print Settings, it showed PDF995 as the default printer. I had to change the default printer to my actual printer, and then I successfully saved the return as PDF995. I am sharing this tip in case someone else runs into this issue.
* ANNOYANCES
~~~~~~~~~~~~
* H&R Block wants to sell you more services. It refers to this as personalized services, and if you select it, it will provide you info about software deals (which are never as good as Amazon deals), services, and consultations. Fortunately, you can say "No, thanks," but you must pay attention to opt-out if you want to avoid marketing emails.
* H&R Block starts the interview process with an annoying up-sell pitch, recommending an upgrade from Deluxe to Premium even when it is not necessary. They should have determined if the person would benefit from the Premium version first. That would have been useful. As it stands now, it is just annoying.
What is the difference between Premium and Deluxe? The Premium version offers advanced tools for self-employed and rental property owners: cost basis of home sales, dividends, gifts, and inheritance assets. It has advanced Schedule C guidance to maximize deductions for self-employment income. And finally, it has guidance for rental property income and expenses. The rest of the Premium package is the same as the Deluxe.
Note that the Deluxe package supports self-employed income as well as stock sale cost basis calculations. Schedule C is a complete schedule - expenses, depreciation, and all that through an interview process. The difference between the Premium and Deluxe versions is that you can use Deluxe to report gain or loss on your PERSONAL taxes (i.e., not as a Corporation).
* GENERAL
~~~~~~~~~~~~~
* When you start the software, the first step (after validating your product code) allows you to import old data from the previous year's return. You can load H&R Block software, TurboTax, or a PDF copy of the 2021 return. Importing the old tax return saves a lot of typing as a lot of information is transferred from the old form.
* Since many of my numbers are not final, I use the H&R feature that allows me to mark entries as "tentative" (right mouse click, then select "mark entry as tentative" from a drop-down list).
H&R Block keeps track of all tentative entries and displays them during a "check" step, which is typically invoked at the end of the interview but can also be invoked by itself at any time. The check step lists all entries marked as tentative, so it is easy to update them.
* H&R Block asks you to provide a state-issued ID number to combat stolen identity tax returns. It is not required but highly encouraged.
* I like DeductionPro, which helps suggest reasonable prices based on the condition of the donated used clothing items. It is nice not to have to come up with what is reasonable on my own.
* The final tax return can be saved in a PDF format for future reference. I always do that so I can re-print an old return without running an old copy of H&R Block (especially when a new computer may not even have an old H&R Block installed). It is a good idea to make a backup on DVD or another form of backup, in case the computer where you did the return crushes.
* H&R Block can print forms when an Ethernet connection is disconnected. In 2014, TurboTax introduced a requirement that the data had to be sent to Intuit's servers to be formatted for printing. H&R Block does not have this requirement.
* If you owe taxes, there are three options for payment: electronic withdrawal from your bank (free), mailing a check (free), and paying by credit card from a secure website (not free). IRS does not charge a fee, but the sites that provide this service do. Several websites provide this service with a "convenience" fee. If you search for "pay taxes by credit or debit," you will see the detailed fee schedule on the irs.gov website.
* Can I download an old version of H&R Block software purchased on Amazon?
Yes. Amazon allows you to download the software purchased on Amazon as long as you have an Amazon account. There is no extra charge for downloading old software. The first download I bought on Amazon was in 2009, and I tested that I could still download it. The software appears under the Downloads and Codes section of your orders.
Note that if you purchased the software directly from the H&R Block site, they add on a charge for "extended download service." Amazon does not charge for this service.
* Does the application provide a feature to confirm IRS/state agency tax acceptance status?
Yes, once you submit your return, there will be a button on the first page to request a status check. The resulting status will be displayed on the first page. You can request status updates multiple times.
* Amended returns
Last year, I had to do my first amended return. The first amended return worked perfectly. Unfortunately, I made a mistake and wanted to do a second amended return, and the software could not handle it. After multiple phone conversations with H&R Block, the bottom line was that the software cannot handle a correction to an amended return electronically, and it has to be filed on paper. Alternatively, you can wait until IRS sends you a letter to notify you that they began processing the amended return. The letter gives you the chance to add additional information and provides you a case number to reference. This letter arrived 6 months after I filed the amended return.
Ali Julia review
Review of H&R Block Tax Software Deluxe plus State
JimAndTonic
Fred Raimer
Ali Julia