H&R Block Tax Software Review: Pros, Cons, And Alternatives

H&R Block Online - Is It Really Free?

H&R Block offers free Federal and State tax filing for a limited number of filers where you only have these common tax forms or situations. Free filing works for these forms and needs: 

• W-2 income
• Unemployment income
• Social Security Income
• Retirement plan income 
• Student Loan interest 
• Child Tax Credit
• Earned Income Tax Credit 
• Interest Income 
• Limited Investment Support

Anyone with more complex needs will have to upgrade to a paid tier. Support for interest and investments is new for the free tier this year. 

Compared to the competition, H&R Block online offers one of the broadest free filing programs. However, H&R Block won’t be free for all users. For example, filers with Health Savings Accounts (HSAs) or who have dependent care expenses must upgrade to the Deluxe tier. Crypto traders, most investors, and business owners will need the Premium or Self-Employed tier. 

You can also use the IRS Free File program, offering free H&R Block and other tax software through a partnership with the Free File Alliance. This is only available to those earning $73,000 or less annually (adjusted gross income) and meeting the provider's criteria.

See the full list of the best free tax software here >>

What's New For 2024?

Like all tax software providers, H&R Block will make updates to meet new and evolving tax needs, such as questions about student loan forgiveness for being able to participate in the program.

Last year, H&R Block added more support for 1099-K forms and updated sections related to education credits, business meal tax deductions, and other tax law changes. 

For 2024, the free version offers expanded support for bank account interest and limited support for investments. Updates are also implemented to keep up with the tax code. COVID relief programs are mostly over, but we're seeing expanded tax credits for solar energy home improvements, a $7,500 credit for qualifying electric vehicles, and inflation-driven adjustments to many tiers, brackets, and limits for IRS deductions and credits. 

Of note, in 2023, for the 2022 income tax year, we picked H&R Block Premium Online as the best tax software for stock market investments. See our full list of best tax software here.

Does H&R Block Make Tax Filing Easy In 2024?

H&R Block uses sensible workflows to help filers complete their tax returns with minimal pain. 

The following features make your tax prep straightforward so you can understand what you’ve completed and what remains. 

• Questionnaires
• Guided software
• Navigation bars
• Built-in calculators
• Simple language
• Robust import options

Claiming common credits like the Earned Income Tax Credit (EITC), the Child Tax Credit, and the American Opportunity Tax Credit is a streamlined process, though you may have to enter a few details to unlock those questionnaires. 

The software also makes it easy to handle pre-refunded credits (such as the Advanced Child Tax Credit) and pre-paid taxes (such as quarterly tax estimates).

Our testing revealed only a few drawbacks. First, self-employed people must determine their maximum retirement account contributions independently. Second, limited brokerage integrations compared to top competitor Turbo Tax and limited crypto integrations make the software more cumbersome for active traders.

Compared to all other tax software, we found H&R Block the second easiest tax software to use after TurboTax. The major added benefit here, however, is that you can visit an H&R Block location if you want to convert to in-person tax preparation and support.  

H&R Block Top Features

H&R Block is a premium tax software with a long list of notable features. These are some of the most important features for typical users:

Easy Navigation

H&R Block uses a question-and-answer navigation style to help tax filers through their tax forms. The questions are free from confusing industry jargon when possible. When H&R Block uses jargon, it explains the terms through "Read More" bubbles or other hover features.

Short Questionnaires To Expedite Filing

At the start of each major section (Income, Deductions, Credits, etc.), H&R Block prompts users with a short questionnaire. The questionnaire narrows down the parts of the software relevant to each user. You can always go back and review other sections, but it’s nice to save time skipping areas you don’t need to worry about.

Upload Tax Documents To Speed Up The Process

H&R Block is one of the easiest online filing software platforms. It allows users to upload many forms, including 1099-NEC, 1099-MISC, 1099-INT, W-2 forms, and much more. You can upload a copy to H&R Block if the form follows standard layouts. 

Users can take a picture of supported forms and upload them using the H&R Block app or drag and drop them into H&R Block using their computer. The software reads the uploaded documents and fills out forms for you where possible. (But you should still double check that it’s accurate.)

Robust Depreciation And Expense Calculators

H&R Block software contains easy-to-use calculators for mileage deductions, asset depreciation, and other expenses. These make filing easy for anyone who doesn’t want to calculate depreciation independently. 

Small business owners, side hustlers, and real estate investors should be able to find what they need to get their taxes done without hiring an expensive accountant.

Free Live Chat Tech Support

H&R Block offers free live chat tech support on the Deluxe, Premium, and Self-Employed tiers. This is not the same as answering questions about your taxes, only on how to use the software. 

It also offers limited “tax guidance,” though this is not tax advice. The built-in free guidance helps users find credits, deductions, or other areas that they may have missed. Like most competitors, you must pay an additional fee if you need more help from a human tax expert.

Option To Upgrade For Tax Support

H&R Block’s Online Assist program allows filers to access unlimited support from tax-filing experts. The add-on is pricey, but it guarantees that users get the answers they need from a qualified person. You can upgrade to plans where you get: 

• Unlimited access for tax questions
• Ability to hand off your tax return to a professional
• Get a hybrid experience with online and in-person tax services at a local H&R Block location, a unique feature you don't get with most other tax apps. 

H&R Block Drawbacks

H&R Block has only a few notable drawbacks. While the software is slightly less intuitive and flashy than TurboTax, it’s easy to navigate and use. The biggest drawbacks are related to cost and the few troubles we found below:

Can't Calculate Self-Employed Retirement Account Contributions

Self-employed individuals have flexibility in contributing to their retirement accounts. However, H&R Block doesn’t help calculate the maximum contribution amount for these filers, which could lead to an expensive tax error.

A tax filer may unwittingly contribute more than the maximum amount, or they may undercontribute, not realizing they have more room to save on taxes. This issue won’t affect more filers, but it is a surprising oversight given the quality of other sections of the online app.

Paid Version Required To Report HSA Contributions

One of H&R Block’s pricing gotchas is related to HSA contributions. If you have a health savings account (HSA), even if it is through your employer, you’ll have to upgrade to H&R Block’s Deluxe edition. This could come with sticker shock for some filers.

If you're eligible, check out our favorite HSA accounts here. 

Limited Financial Institution Integrations

H&R Block does not natively integrate with brokerages or crypto exchanges to calculate capital gains from trading activity. As a result, stock and crypto investors may require additional information to complete Schedule D forms. Typing in all of those trades yourself can be time-consuming and cumbersome.

Audit Support Isn't Included By Default

H&R Block's Worry-Free Audit Support costs $19.99. This fee must be paid on top of all other software costs. Several companies offer audit support as an included feature rather than an add-on product for an extra fee.

Related: Should You Pay For Audit Support For Your Taxes?

H&R Block Online Prices And Plans

H&R Block has four major pricing tiers, including a completely free (State and Federal filing cost $0) option. Users can add “Worry-Free” Audit assistance for $19.99. 

The Online Assist plans from H&R Block include unlimited help from tax professionals such as CPAs or Enrolled Agents. These individuals can answer tax questions specific to your situation.

Bonus: Get 20% off H&R Block online by signing up through this link >>

Note: Prices are subject to change, especially as it gets closer to the tax deadline. The earlier you start, the higher your likelihood of locking in better prices. 

How Does H&R Block Stack Up To The Competition?

H&R Block offers an impressive set of functionalities through its free pricing tier, and is a winner for people seeking free filing if they qualify. 

The Deluxe Tier is H&R Block’s worst value. Low-cost or free software can easily help filers itemize deductions and claim straightforward credits.

Compared to H&R Block’s competition, the Premium tier is the best value for a paid tier. It supports rental properties, basic self-employment income and expenses, and all stock and crypto activity.

Users who don’t need H&R Block’s robust functionality may find that FreeTaxUSA or TaxSlayer offers the necessary functionality at lower costs.

H&R Block typically prices itself near the top end of the market. Filers looking for a deal on H&R Block should lock in prices as soon as possible to get the lowest possible rates. Plus, if you use this link, you can get 20% off.

* TurboTax Free Edition: ~37% of taxpayers qualify. Form 1040 + limited credits only.

Is It Safe And Secure?

Tax Prep companies are prime targets for hackers seeking personal information. H&R Block employs industry-standard encryption, multi-factor authentication, and web-browsing encryption to protect users’ financial information.

However, the company is not perfect. In 2019, the company suffered a data breach in which some customer information was leaked. While generally trustworthy, its cybersecurity history leaves something to be desired. If you're ultra-concerned about data breaches and hacks, you may want to look elsewhere. 

How Do I Contact H&R Block?

One of the reasons we love H&R Block is because of the many ways you can get help, including online, by phone, or by having a tax preparer virtually prepare your tax return. You can also visit one of H&R Block's many physical locations. 

To contact H&R Block by phone, you can call 1-800-472-5625. If you want to visit an office in person, you can schedule an appointment here.

Where To Buy

We recommend that everyone who uses tax software use the online version rather than buying a disk or downloading and installing it on a home computer. You're more at risk of losing your data on your home computer, whereas if you use the online version, it’s always saved and accessible in the cloud if your computer crashes.

With that in mind, here's where you can buy H&R Block Tax Software.

H&R Block Online: H&R Block online is typically the easiest way to buy H&R Block tax software. You can start for free online, and the guided software will help you pick the best version for you. Or you can jump right into whichever version you need. Plus, you can save 20% on H&R Block Tax Software Products if you go through this link >>

Amazon: Amazon currently has a promotion for H&R Block where you can get the full version of H&R Block, plus 5% cash back if you use the Amazon Prime Rewards Visa. Check out H&R Block on Amazon here.

Retail Stores: H&R Block tax software is also available in some retail stores for a limited time. You can typically find it on store shelves in late December through April. You can find it at Target, Walmart, and office supply stores like OfficeDepot.

Why Should You Trust Us?

The College Investor team spent years reviewing all of the top tax filing options, and our team has personal experience with the majority of tax software tools. I personally have been the lead tax software reviewer since 2022, and have compared most of the major companies on the marketplace.

Our editor-in-chief Robert Farrington has been trying and testing tax software tools since 2011, and has tested and tried almost every tax filing product. Furthermore, our team has created reviews and video walk-throughs of all of the major tax preparation companies which you can find on our YouTube channel.

We’re tax DIYers and want a good deal, just like you. We work hard to offer informed and honest opinions on every product we test.

How Was This Product Tested?

In our original tests, we went through H&R Block Online and completed a real-life tax return that included W2 income, self-employment income, rental property income, and investment income. We tried to enter every piece of data and use every feature available. We then compared the result to all the other products we've tested, as well as a tax return prepared by a tax professional.

This year, we went back through and re-checked all the features we originally tested, as well as any new features. We also validated the pricing options.

H&R Block Online FAQs

Here are some common questions about H&R Block online:

Can H&R Block Online help me file my crypto investments?

H&R Block Online has instructions that carefully explain how users can file taxes on their cryptocurrency trades. However, the software treats it like other capital gains activities. There are no special integrations to make crypto filing easier.

Does H&R Block offer refund advance loans?

At this time, H&R Block is only advertising tax refund advance loans to people who use the office locations.

Does H&R Block offer any deals on refunds?

At this time, H&R Block is not advertising deals on refunds. Historically, the company has partnered with Amazon to offer boosted returns for people accepting refunds as gift cards. This may return later in the season.

Do I have to use the self-employed tier for my side hustle?

Most side hustlers and people with minimal business expenses can find their tax liability using the Premium level. The Premium level is less expensive than the Self-Employed tier but supports “simplified” expenses. This includes expenses of less than $5,000. Filers still get to claim the Qualified Business Income Deduction on this tier.

Is H&R Block better than TurboTax?

It depends. We found H&R Block to be better for price and very good for usability. TurboTax does offer one of the easiest-to-use interfaces, though, which can make tax filing easier and quicker.

H&R Block Online Features

Here are the main features available by plan level.