Hr Block 35 Continuing Education Fee
TurboTax, H&R Block, and TaxAct are the three major players that dominate the tax filing landscape.
TurboTax consistently produces the highest quality, easiest to use tax filing software on the market, and H&R Block follows closely on its heels. TaxAct tends to lag the pack in terms of usability, but it also chalks in at the lowest price point.
Each software offers "Free" filing. However, the Free filing has limits. All three offer paid filing tiers as well. Of course, each company offers different inclusions at each tier which makes comparing features all the more difficult. To clarify pricing, we're comparing the three major players in 2022.
If you don't know what tax software is right for you, check out our guide to the Best Tax Software which breaks down our picks based on your tax situation.
Note:We will adjust these prices as we find them, but there may be sales, specials, or discounts we miss. Please let us know in the comments if you find a good deal!
Right now, you can get 20% off H&R Block tax software online - making it the cheapest option of these three competitors. Check out H&R Block Online here >>
The Big Changes For 2022
All three of the major software providers increased the usability of their products in 2022. H&R Block and TurboTax specifically focused on ensuring filers understand the American Rescue Plan. TaxAct's improvements focused on general usability.
From a pricing perspective, the big change this year is TaxAct's decision to charge for state filing at the Free level. While TurboTax and H&R Block offer free federal and state filing to qualified people, TaxAct only offers free federal filing. Users will have to pay at least $39.95 to file their state taxes.
The other major change is H&R Block's expansion of the Deluxe tier. Normally, this tier is a huge waste of money for filers that don't fit the criteria for free filing. However, H&R Block opened up this tier to people with income from "gig work" or any business with less than $5,000 in annual expenses. Thanks to this change, we're recommending the Deluxe tier for the first time to select filers.
Comparing The Online "Free" Tax Filing Software
TurboTax and H&R Block offer some form of completely free tax filing. That means the federal filing costs $0 and the first state costs $0. TaxAct always charges for state filing.
Features
However, many filers won't qualify for these company's Free tier. The table below shows what is always included, never included, and sometimes included.
| Always Included | Always Requires Upgrades | Sometimes Included |
|---|---|---|
| W-2 Income (no HSA contributions) | Charitable contributions | Education credits. H&R Block and TaxAct support these. TurboTax does not. |
| Earned Income Tax Credit | Itemized deductions | Student Loan Interest Deduction. |
| Child Tax Credit | HSA contributions | |
| Stimulus credits | Daycare or other dependent care expenses | |
| Unemployment income | Stock trading | |
| Social Security Income | Cryptocurrency trading | |
| Dividends | ||
| Rental income | ||
| Side hustle income | ||
| Small business income |
Pricing
For a comparison of "Free" tiers, you'd except to see a lot of $0s. And that's mostly what you'll find in the table below. But remember - it's not always about price, but also what features are included in the free tier.
However, as previously noted, you will have to pay $39.95 (per state) if you need to file a state return with TaxAct this year.
| TurboTax Free | H&R Block Free | TaxAct Free | |
|---|---|---|---|
| Federal Return | $0 | $0 | $0 |
| Federal eFile | $0 | $0 | $0 |
| State Return | $0 | $0 | $39.95 |
| State eFile | $0 | $0 | $0 |
| Total Price | $0 | $0 | $39.95 |
Recommendation For 2022
If you file by March 31st, 2022, TurboTax Free includes a free review from a tax expert. We like that TurboTax offers a free review for filers at this level.
However, TurboTax's free tier is quite restrictive. H&R Block continues to offer the most expansive free tier which is why we recommend it again in 2022.
For the first time, we recommend that people avoid TaxAct even on the free tier. The cost of state filing is excessive.
Comparing The Online "Deluxe" Tax Filing Software
The Deluxe pricing tier is typically targeted toward people who want to "maximize deductions and credits." A lot of people think this means people who itemize their taxes, but many tax filers who take the standard deduction will still find that they need to upgrade to the Deluxe tier of their tax filing software for various reasons.
Features
"Deluxe" is the most common tier for people who have child care expenses, who contribute to an HSA, or who want to deduct their student loan interest. Here's a closer look at what's always included, never included, and sometimes included.
| Always Included On The Deluxe Tier | Always Requires Upgrades | Sometimes Included |
|---|---|---|
| Everything on Free tier | Stock trading | Side hustle income, expenses, and credits. H&R Block supports this, the others do not. |
| Child care expenses | Cryptocurrency trading | |
| HSA contributions | Dividends | |
| Retirement contributions | Rental income | |
| All credits | Small business income | |
| All deductions |
Pricing
Typically, the Deluxe tier is the worst value for these software packages. However, H&R Block is bucking the trend and offers incredible value for gig workers who have income from a 1099-NEC. H&R Block is the only company to support 1099-NEC income on the Deluxe level.
| TurboTax Deluxe | H&R Block Deluxe | TaxAct Deluxe | |
|---|---|---|---|
| Federal Return | $59 | $54.99 | $46.95 |
| Federal eFile | $0 | $0 | $0 |
| State Return | $49 | $44.99 | $54.95 |
| State eFile | $0 | $0 | $0 |
| Total Price | $108 | $99.98 | $101.90 |
Recommendation For 2022
If you won't take advantage of H&R Block's 1099-NEC option at this level, skip these three companies altogether and look to alternatives instead. A low-cost competitor like TaxHawk matches the functionality you need at a lower price point.
Comparing The Online "Premium" Tax Filing Software
The Premium pricing tier is the tier that supports "investors". All three software packages support stock and crypto trading, and they have built-in calculators for landlords.
Features
This tier is where third-party integrations become extremely important. TurboTax supports the largest number of third-party integrations. For example, it has a direct integration with Coinbase which makes it easy for cryptocurrency traders to report their gains or losses in terms of US Dollars. The other software packages don't host such integrations.
All three companies host stock integrations with major brokerages like TD Ameritrade and Fidelity. These ensure that users can quickly and easily calculate their capital gains and losses.
If you're a landlord, both TurboTax and H&R Block offer easy-to-use depreciation calculators that make it easy to claim the right deduction. I find TaxAct's to be a little clunkier, but overall it offers a reasonable experience.
| Always Included On The Premium Tier | Always Requires Upgrades | Sometimes Included |
|---|---|---|
| Everything on the | Small business income | Side hustle income, expenses, and credits. H&R Block supports this, the others do not. |
| Stock trading | ||
| Cryptocurrency trading | ||
| Rental income |
Pricing
For federal filing, TaxAct's "Premium" pricing is almost exactly half of what TurboTax charges. That's a significant discount, but you'll also get a lot less functionality.
H&R Block falls squarely in between these two companies in terms of pricing, but it's closer to TurboTax when it comes to included features.
| TurboTax Premier | H&R Block Premium | TaxAct Premier | |
|---|---|---|---|
| Federal Return | $89 | $74.99 | $69.95 |
| Federal eFile | $0 | $0 | $0 |
| State Return | $49 | $44.99 | $54.95 |
| State eFile | $0 | $0 | $0 |
| Total Price | $138 | $119.98 | $124.90 |
Recommendation For 2022
At this tier, TurboTax offers the best experience. Most traders and landlords will appreciate the number of integrations that TurboTax supports. However, functionality isn't everything. H&R Block offers a similar user experience at a lower price point.
Comparing The Online "Self-Employed" Tax Filing Software
The self-employed filing software is required for anyone who had Schedule C (self-employment) income. Given the rocky economic conditions of 2021, I suspect that a lot of people have done some gig work this year. All of those side hustlers will need to upgrade to this tier for their filing.
Features
As previously noted, H&R Block Deluxe supports users who want to declare Schedule C income, but don't have significant expenses to report. However, those with significant expenses will need to upgrade to this level.
In terms of usability, TurboTax leads the pack. It integrates seamlessly with Quickbooks, offers plenty of options for imports, and makes it easy to depreciate your business assets. If your business doesn't have assets, you may not need TurboTax or any of these software options. TaxSlayer Classic and TaxHawk offer similar functionality at much lower prices.
Pricing
The Self-Employed tier is always the most expensive filing tier for these companies. It supports anyone with self-employment income. That could be someone who walked a few dogs, or it could include someone who earns all of their income from self-employment.
| TurboTax Self-Employed | H&R Block Self-Employed | TaxAct Self-Employed+ | |
|---|---|---|---|
| Federal Return | $119 | $114.99 | $94.95 |
| Federal eFile | $0 | $0 | $0 |
| State Return | $49 | $44.99 | $54.95 |
| State eFile | $0 | $0 | $0 |
| Total Price | $168 | $159.98 | $149.90 |
Recommendation For 2022
Given the close pricing at the highest tier, TurboTax has the advantage. But at this level, I would encourage filers to check out TaxSlayer which has incredible functionality at a lower price. It's not even a usual comparison, but this is one area where it shines as it offers all forms, a pretty good experience, and solid price point.
Comparing The Downloadable Editions Of TurboTax, H&R Block, and TaxAct
Tax filers have the option to choose downloadable products rather than using the cloud-based options. Theoretically, downloadable software may be more secure. The only direct risk of hacking is when you e-file your returns. However, these products aren't risk-free. If your computer has malware, a hacker could steal your information from your computer rather than from a cloud-based server.
Also, we see a lot of issues of people failing to save their return, computers crashing, and more. As such, we typically recommend everyone use the online version.
The downloadable function is the same as the corresponding online software, and they typically cost more. If you're watching prices, you might have some luck shopping on Amazon.com. Choosing the downloadable software is almost always easier and higher-quality than buying a similar product in the store. Plus, Amazon sometimes offers 3% boosts if you choose to accept your return on an Amazon gift card
Comparing Downloadable Basic Editions
At this point, H&R Block is the least expensive option among the basic software packages. While its still fairly expensive, it's the option we recommend this year.
| TurboTax Basic | H&R Block Basic | TaxAct Basic | |
|---|---|---|---|
| Federal Return | $40 | $19.95 | $19.95 |
| Federal eFile | $0 | $0 | $0 |
| State Return | $40 | $36.95 | $50 |
| State eFile | $20 | $19.95 | $9.99 |
| Total Price | $100 | $76.85 | $79.94 |
Comparing Downloadable Deluxe Editions
Across the board, the Deluxe edition brings more functionality at a lower price point (compared to the Basic edition).
If you'll have to file a state return, H&R Block's downloadable Deluxe edition will actually cost you less than it's Basic software download. Given the dramatic disparity in pricing, H&R Block is again the winner for downloadable Deluxe software.
| TurboTax Deluxe | H&R Block Deluxe | TaxAct Deluxe | |
|---|---|---|---|
| Federal Return | $70 | $44.95 | $119.95 |
| Federal eFile | $0 | $0 | $0 |
| State Return | $0* | $0* | $0* |
| State eFile | $20 | $19.95 | $9.99 |
| Total Price | $90 | $64.90 | $129.94 |
*First state is free.
Comparing Downloadable Premium Editions
At the Premium level, H&R Block still holds the title of the low-cost leader. The overall price of H&R Block Premium is within a few dollars of its online offering.
| TurboTax Premier | H&R Block Premium | TaxAct Premier | |
|---|---|---|---|
| Federal Return | $100 | $64.95 | $109.95 |
| Federal eFile | $0 | $0 | $0 |
| State Return | $0* | $0* | $0* |
| State eFile | $20 | $19.95 | $9.99 |
| Total Price | $120 | $84.90 | $119.94 |
*First state is free.
Comparing Downloadable Self-Employed Editions
Consistent with other tiers, H&R Block is still the low price leader. Clocking in at under $100, the H&R Block downloadable software is quite a steal. If you're going to use H&R Block Self-Employed, you may save money by choosing to download.
| TurboTax Home & Business | H&R Block Premium & Business | TaxAct Self-Employed | |
|---|---|---|---|
| Federal Return | $110 | $79.95 | $119.95 |
| Federal eFile | $0 | $0 | $0 |
| State Return | $0* | $0* | $0* |
| State eFile | $20 | $19.95 | $9.99 |
| Total Price | $130 | $99.90 | $129.94 |
*First state is free.
Final Thoughts
After comparing pricing and functionality, H&R Block most frequently emerges as the best value among the Big Three filing companies. But that doesn't mean H&R Block is the best choice for you.
Cryptocurrency traders and landlords may decide that upgrading to TurboTax is the right move. While those who need access to "Premium" tier features but want to save money may prefer to use TaxAct or a bargain software like TaxHawk.
Check out our full reviews on H&R Block, TurboTax, and TaxAct if you want to learn more.
Source: https://thecollegeinvestor.com/15201/comparing-prices-turbotax-hr-block-tax-act/
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