I have been using H&R Block tax software for many years. I keep using it because it does what I need and it has always been cheaper than TurboTax. I have been buying the Deluxe version of H&R Block because it covers the mutual funds sales, cost basis calculations are included (Schedule D), the form for Foreign Tax Credit from mutual funds is present (Form 1116), as well as stock sales. To get this functionality in TurboTax you need to buy the Premium version of the software.
I just completed my preliminary tax return and here are my observations.
INSTALLATION
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* If you are using a digital download you will need an activation code to install the software.
The activation code is shown in your Amazon Software downloads (it used to be also included in email confirming the purchase from Amazon but it was not included in the email this year). To locate it you need to do this:
1) Log into Amazon
2) Select 'Your account' and the section called 'Digital Content'
3) Select 'Your Games and Software downloads'
4) Then under H&R software entry you will see activation code
* Does H&R allow to install the software on two PCs?
No. The license agreement that one needs to accept during the install 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."
* WHAT IS INCLUDED
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Using tax software includes two fees - one to use the software and the second one to e-file the returns with IRS. This package includes the cost of using both the Federal tax return and State return for one state. If you need to file tax in two states, you will need to purchase the rights to use the second state software. The package also include the cost of 5 free Federal e-files, but does NOT include the cost of 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 return, so you can print and mail any number of returns you desire.
Note 1: New York State law prohibits additional charges for State e-file (NY residents still have to pay for using the software).
Note 2: It is not possible to e-file a state return for New Hampshire, the NH returns have to be mailed.
* The state forms are not available as I write this review. H&R web site says they will become available in January. To see the latest status you can go to H&R website, click on "Download software", and select "State Editions". Currently it says "Coming soon in January 2018". When the state forms became available the state software can be downloaded directly from the H&R Block from the first screen of state tax preparation.
* GENERAL
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* In the past the interview started with a create that immediately prompted you to start a new return via a button on the screen, this year I had to 'File - Create New Return' to see the button to get started.
* This year there is an option to import old data not only from a data file but the a PDF file of 2016 tax return.
* The current forms are preliminary, the final versions will be available January 5, 2018.
* 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. In my opinion, they should have determined if the person would truly 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 Deluxe.
Note that the Deluxe package has support for self-employed income as well as stock sale cost basis calculations.
* This year I noticed an improvement in on-line help. In the past help was not context sensitive, it just brought up help dialog and it was up to you to think of the right keywords and find help. This year it actually opens up the right section of help! After so many years I lost hope that it will ever become context sensitive - I was pleasantly surprised!
* To combat stolen-identity tax returns H&R Block now requires you to provide state-issued ID number.
* H&R Block provided me some guidance for completing Form 1116 (foreign tax credit, for example foreign tax paid by a mutual fund). However, I needed to keep switching between the whole-form view to enter data and then back to interview to read the instructions. Even though the form where you can enter data is visible at the same time as instructions you cannot enter data into it until you switch into whole-form view. This is cumbersome, but at least there is some guidance for this form.
* I like DeductionPro which helps suggests reasonable prices based on condition of the donated used clothing items. It is nice not to have to come up with what is reasonable on my own.
* At the end of the interview process there is a check step (which you can run at any time, but the interview ends with this check). This step flags problems (e.g. missing information) and potential audit alerts (e.g. unusual deductions), and reminders (e.g. things you marked tentative). I find this check step very helpful.
* 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 having to run an old copy of H&R Block (especially down the road when a new computer may not even have an old H&R Block installed).
* H&R Block can print forms when Ethernet connection is disconnected. In 2014 TurboTax's 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.
* Does H&R has the ability to import TurboTax data from previous years?
Yes. TurboTax files have a .tax extension. Use the Browse button within H&R Block application to navigate to the folder you need and it will import the data from TT return. In addition this year you can also import pdf file of your return no matter what software you used to save the old return.
* If you owe taxes there are three options for payment: electronic withdrawal from your bank, mailing a check and paying by credit card from a secure web site. Is there a charge to pay by credit card? Yes. There are several web sites that provide this service with a "convenience" fee (lowest fee is $2.25 flat fee for a debit card and 1.87% fee for a credit card). If you search for "pay taxes by credit or debit" you will see the detailed fee schedule on the irs.gov web site.
PRICE considerations
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The price on H&R Block package changes often and you can catch some great discounts. I got H&R Block on Black Friday sale. If you missed that sale you can still get bargains by using a tool that alerts on Amazon prices discounts for any product. If you enter "Amazon price history alert" in Google it will come up at the top, my favorite has the word "camel" (repeated 3 times) in the name. You can set it up to send you an alert when you desired price drop is reached. During the last tax year season the price fluctuated between $20 and the list price of $44.99, dipping below $30 a number of times. It also qualifies for digital credits for No-rush Prime shipping.
Also note that Amazon adds the State sales tax to the final price of H&R Block (in states where it has physical presences such as Massachusetts).
SUMMARY
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Unlike last year, I did not run into any glitches during installation or using the software. The biggest difference in this year's return preparation was the improvements to on-line help. Making it context sensitive made it useful, in the past I used to do internet searches when I needed to get an answer. This year I actually used on-line help! If you have a question I have not covered leave a comment and I will do my best to answer it.
You can find it on Amazon by following this link.
Ali Julia review ★★★★★
