Tax Software Showdown: TurboTax vs. H&R Block
Columnist David Eckoff tells you what you need to know about tax preparation software. Local tax professionals weigh in.
I'm David Eckoff. I'm on a mission to help businesses in Virginia-Highland use social media and technology to their advantage.
This week we'll explore options for preparing your business taxes with local tax professionals; and with TurboTax and H&R Block software.
Tax Professionals Located in Virginia-Highland
I spoke with two tax preparers in the Virginia-Highland area: Philip Autrey, senior tax advisor at H&R Block, at 696-B Cleburne Terrace, NE; and Taylor Green, CPA, located at 750 Ponce de Leon Place, NE.
Autrey is in his thirteenth year preparing taxes at H&R Block and specializes in small business.
"Keep good records. Pay quarterly. And remember that corporate taxes are due March 15, not April 15," Autrey told Patch.
The cost to prepare a corporate return at the H&R Block office depends on the number of certain entries and forms. Budget $400 or more.
Taylor Green has an accounting degree and a Masters in Accounting with a concentration in tax. He is also a certified public accountant.
"Start early with your tax professional," Green said. "Ensure your bookkeeping is in order so your tax preparation is painless and you can see where you are during the year."
The most simple corporate return here could cost $600, with more complex returns $2,000 to $3,000 or higher.
Battle of the Tax Software
TurboTax Business and H&R Block At Home Premium & Business are software packages that enable you to prepare your taxes for corporations, partnerships and LLCs.
Unlike H&R Block, TurboTax Business, does not include software for personal tax returns, sole proprietorships or independent contractors. You have to buy a separate package.
TurboTax Business costs $129.95 direct from Intuit. H&R Block At Home Premium & Business is less expensive costing just $79.95 direct from H&R Block. They cost less from retailers such as Amazon.com.
Both offer 60-day money-back guarantees.
What Their Executives Say
I asked both companies what makes their product better than the competition.
"What makes us successful is we walk a person through using an interview, which makes the customer feel comfortable," Bob Meighan, Vice President at TurboTax, said. "We hand hold you through the entire process. That's what customers are looking for. Plain English questions and guidance."
What about H&R Block?
"Our business users are generally the most savvy we have and they know their P&L," Mark Minor, Senior Product Manager at H&R Block, said. "They can use the interview path or go straight to the forms. You choose your own adventure and approach. Some people want to be led through and some want to drive."
My Twitter Network Weighs In
Atlanta resident and frequent visitor to Virginia-Highland Shane Pike has a strong opinion.
"I never heard anything good about H&R Block," Pike told Patch via Twitter. "I don't view them as business and sure don't see them as a software company. I like TurboTax because it lets a guy like me do his own taxes quickly and easily. I tried H&R Block software once and it was a nightmare. I was constantly lost."
Other people in my network had good things to say about TurboTax. No one recommended H&R Block software.
Download, Install and Update
Next, I download and install the software for TurboTax and H&R Block.
For TurboTax, this was quick and easy.
For H&R Block, installation is not as user friendly. For example, the name of one the files in the instructions doesn't match the actual name of the file I need to click on. Small details like this can make the difference between easy and confusing.
After installation, both programs download automatic updates of the program code and federal tax forms.
With TurboTax, this is effortless on my part.
With H&R Block, I inexplicably have to repeat the same process twice.
On-screen Interviews
TurboTax asks me questions. I type my answers and click the "Next" button to advance through the interview. I never have to go into the tax forms, which makes me happy.
In contrast, I find the interview by H&R Block software inefficient and annoying at times. For example, when I answer no to a question, and click next, H&R Block brings me to a worksheet to complete - as if I had answered yes.
Other Differentiators
I preferred the online help format for TurboTax.
I like that TurboTax enables me to save K1 forms as PDF files, to e-mail to my shareholders, saving me a trip to the post office. H&R Block does not allow me to send the K1 forms electronically.
With TurboTax, I'm able to E-file my federal return for business. H&R Block does not allow me to E-file my corporate return. That's a big deal.
Final Grades
TuboTax Business: TurboTax made doing my taxes easy, efficient and enjoyable. Points off for higher price but otherwise a great product. Overall grade: A-
H&R Block At Home Premium & Business: I disliked the usability of the H&R Block software and the customer experience. Overall grade: C-
As for tax professionals vs. software, Meighan of TurboTax sums it up well.
"Tax accountants fill a valuable role," Meighan said. "There are a lot of small business owners with relatively uncomplicated returns. Software will interview them like an accountant would. If you have a complex return, use an accountant."
The bottom line: In the battle of tax preparation software, TurboTax Business wins hands down. If you have a more complicated return, hire a tax professional.
Connect with Virginia-Highland Patch on Facebook and on Twitter at @VaHiPatch.
David Eckoff
10:35 pm on Tuesday, March 15, 2011
There's sometimes more coverage that I'd like to include in a column than space permits. For those who care a lot about customer service like I do, here's some bonus coverage:
Before buying the tax software, I called H&R Block customer service to ask a question about their money-back guarantee.
Two H&R Block customer service reps gave me incorrect answers. I finally escalated the question to a customer service manager. Forty-five minutes later, my question was answered accurately.
This is unacceptable. When it comes to my tax software, I want to know that I can get accurate answers to my questions. And I don't want to waste time. I gave points off in my grading of H&R Block software based on this.
As you consider your options, it's something I think you should know about.
mjr
1:17 pm on Wednesday, March 16, 2011
If you are a self-employed, small-business owner, TurboTax does have a product that let's you do both your business and personal taxes in one:
TurboTax Home & Business:
http://turbotax.intuit.com/personal-taxes/cd-download/home-and-business.jsp
My wife and I have used it for years and it is a fantastic product.
- MR in SD
David Eckoff
2:24 pm on Wednesday, March 16, 2011
mjr, thanks for joining the conversation here! And you are correct! If your business is a sole proprietor, consultant, 1099 contractor, or single-owner LLC, then TurboTax Home & Business package does also include personal tax software. Thank you for clarifying that and for your feedback about the product! In contrast, the package I reviewed, for corporations, LLCs and partnerships does not come with personal tax software, only the business tax software. I rate the product highly, and would just like to see the personal tax software included with the package.
David Eckoff
2:31 pm on Wednesday, March 16, 2011
An update to my story: I just called H&R Block with a simple request: issue a refund per the satisfaction guarantee and e-mail me a confirmation of the refund. The results: it took 41 minutes and talking with four people to try to accomplish this; and I still do not have an email confirmation.
To say that I am dissatisfied with phone support from H&R Block is an understatement.
If not already obvious from my review, I strongly recommend not using H&R Block software for your taxes. It costs less than TurboTax... but it isn't worth the bad product experience and even worse customer experience.
David Eckoff
2:51 pm on Wednesday, March 16, 2011
Some more bonus coverage about the two local tax preparers who I spoke with:
Philip Autrey seems to like talking with people and working with numbers - good attributes for someone in his job.
Taylor Green comes across as calm and friendly. Those are attributes I appreciate in a tax preparer. He also has a strong professional network he can tap into if you have any specialty needs, such as international, etc.
They have different accounting and tax backgrounds, and their offices are very different. I think you'd have to meet with them yourself to see who is the best match for what you're looking for.
Michael Moore
11:11 pm on Friday, February 3, 2012
For a personal return where you more or less know what you're doing, H&R Block is fine. I switched several years ago from TurboTax and prefer the interface and ease with which I can do hypotheticals and go directly to forms. I also had problems with earlier versions of TT crashing on my Mac, and always requiring newer hardware/system. H&RB was more stable, and I never suffered a crash. In my case, it would hold my hand when I needed it, or let me go quickly enter data when I didn't. It's also cheaper, as the article points out (check Amazon- deluxe version is under $30 w/ Fed efile and 1 state.) I haven't ever had the need to call tech support, so I don't know firsthand how good or bad it is. Your mileage may vary...