H&R Block Tax software

[SumDay]

I've used H&R Block for years (hometown allegiance) and this year is the first problem I've encountered. When I attempted to electronic file, I was unable to because my 2019 AGI didn't match IRS records. When I followed the steps to reconcile with the IRS I got caught in an endless loop of bureaucratic 'page not found' and assorted bad links. I'm blaming it on Covid, as calling the IRS also proved impossible.

I mailed my return and it took four months for my refund to be snail mailed. Sort of defeats the purpose of buying tax software and doing an E-File.

Anyone else have problems like this with other software. or is it just Blocks? Just SO looking forward to tax season, so I thought I'd get a jump on gathering info.

 

[RunningBum]

I tried H&R Block one year. Never again. I got two letters from the IRS because of it, for different problems, and each required filing an amended return. Back to Turbo Tax for me. I know a couple people have had problems with TT and won't use it either so I guess it's like a lot of products: if you don't hit any problems it's a great product, but if you do, it's trash.

My experience is documented at https://www.early-retirement.org/forums/f28/tax-prep-software-89479-6.html#post2064377

 

[Luvtoride]

I've used H&R Block TaxCut software for filing my taxes for years and have never had a problem filing electronically as you described. Did the IRS adjust your prior year return which changed your AGI vs. what you inputted for e-filing your 2020 tax return?

In fact, this year, I filed an extension and then filed my taxes in early August. I have all returns (Federal and 2 states) accepted within 2 days and my Fed and 1 state refunds direct deposited in my account within 2 weeks.

 

[OldShooter]

... When I attempted to electronic file, I was unable to because my 2019 AGI didn't match IRS records. ...

I had the same problem and verified my 2019 AGI by checking my return. Did the software fill out its electronic form wrong or is the problem on the IRS end? I dunno but I certainly wouldn't jump to blaming the software. I just mailed the return and forgot about it as I was applying my overpayment to 2021 taxes anyway.

 

[Ian S]

I've also used Block for years and haven't had a problem e-filing right through the tax year 2020. But I filed months ago so possibly a problem with updated software or with IRS. A friend is battling the IRS over a payment that was made and came out of his bank account but a mistake was made for which year to apply it to and now IRS claims no record of receiving it although their records still show the year it was applied to.

 

[RetireeRobert]

I mailed my return and it took four months for my refund to be snail mailed. Sort of defeats the purpose of buying tax software and doing an E-File.

Anyone else have problems like this with other software. or is it just Blocks? Just SO looking forward to tax season, so I thought I'd get a jump on gathering info.

Delays in getting IRS tax refunds were the norm this year. I mailed in a paper return by snail mail, but return was set up for direct deposit to my account. Took about five months to get my tax refund deposited.

IRS was repeatedly reported as being way behind on processing returns. At one point they were sitting on 35 million untouched tax returns. It was even taking two three or four months before filers could even see acknowledgment that IRS was reporting at their online status check---"Return being processed".

All this was independent of which tax software, if any, filer had used.

So, I would not blame HR Block for that. I have used HR Block tax software for over fifteen years. Always works for me. But I always print out and mail paper return, do not do electronic efile due to return complexity.

 

[jazz4cash]

I tried H&R Block one year. Never again. I got two letters from the IRS because of it, for different problems, and each required filing an amended return. Back to Turbo Tax for me. I know a couple people have had problems with TT and won't use it either so I guess it's like a lot of products: if you don't hit any problems it's a great product, but if you do, it's trash.

My experience is documented at https://www.early-retirement.org/forums/f28/tax-prep-software-89479-6.html#post2064377

Pretty much the opposite experience for me. I'm going back to Block and will never try TT again. I guess it just depends on the hand you draw. I ended up resolving my TT issue by using the Block support program.

I seem to recall the "last year's AGI" challenge question is associated with logging into an online account. I think I usually efile without having to provide that info. Some problems I encountered with TT is that the various versions have very different procedures and work-arounds. That could be true for Block also but I never had any issues to work around.

OP, were you using download or online Block program?

It's been over 4 months since I filed our paper return and IRS says they haven't logged it in yet!

 

[SumDay]

OP, were you using download or online Block program?

It's been over 4 months since I filed our paper return and IRS says they haven't logged it in yet!

Download.

 

[Gumby]

I have used the HR Block software (or its predecessor) since the 1990s. My financial life is simple by design and I usually already know what my taxes will be before I even open the software. What the program does for me is make sure I have not forgotten anything and make sure I don't make math errors. But I don't just take their black box output as gospel truth; if their number doesn't match what I already have calculated, I search until I find the reason it doesn't . Over the years, I have discovered errors in the HR Block program twice - in the program first released in November, which is when I buy it and run my first cut of a tax return. Both times, I contacted them and told them about the problem, which was fixed in the next update.

 

[Sunset]

I've used H&R without any big issue for years, ever since TT wanted to charge extra for needed forms.

I did find one error in their software this year, but it didn't stop me, I just claimed an extra $2 income and it was solved.

Since the program autofills the previous year AGI, I wonder if OP double checked the AGI was the correct amount.

In the past I have played with the software after filing, and had uncertainty of which file was the accurate/real one. I have since become more careful

I print to pdf, my filed returns, so I have a record of what was actually sent.

 

[SumDay]

Since the program autofills the previous year AGI, I wonder if OP double checked the AGI was the correct amount.

Yes, I did. I even tried typing it in while standing on my head. Nothing worked. And the real issue was there was no way to contact the IRS to rectify the situation. If they did change my AGI, I never received any documentation to that effect. So, it's a mystery. We'll see what happens this year. I'll stick with them.

 

[ncbill]

H&R Block is cheaper especially if you need forms which used to be standard in the lower end TurboTax products but now are only found in the more expensive TurboTax versions.

I've used H&R Block's Tax Cut since 2015 to prepare my kid's returns.

My taxes are still complex enough to require an accountant because of some alternative investments I foolishly bought years ago.

 

[qwerty3656]

I prefer H&R Block over Turbotax

 

[mountainsoft]

I used H&R Block's download software earlier this year. When do they typically make the software available for the next tax year (i.e. 2021)?

 

[RetireeRobert]

I used H&R Block's download software earlier this year. When do they typically make the software available for the next tax year (i.e. 2021)?

I believe sometime around mid December is the earliest I have seen it for coming tax year. But even then, one usually has to wait to maybe late January/early February for updates to incorporate latest IRS rules, and perhaps later to get availability and update on some software for some states. .

 

[Jerry1]

I mailed my return and it took four months for my refund to be snail mailed. Sort of defeats the purpose of buying tax software and doing an E-File.

I never really thought of the benefit of tax software as getting my refund quicker. I buy tax software to do the taxes. I can’t imagine keeping up with every nuance of the tax code and then finding the forms and filling them out manually. Once done, whether I mail them or e-file make little difference. I only e-file because it’s free and I don’t have to do anything other than sit at my computer.

I’d certainly give any software a pass for last year. The IRS was a mess and I’m sure that also impacted the software development.

 

[Badger]

My financial life is simple by design and I usually already know what my taxes will be before I even open the software. What the program does for me is make sure I have not forgotten anything and make sure I don't make math errors. But I don't just take their black box output as gospel truth; if their number doesn't match what I already have calculated, I search until I find the reason it doesn't .

+1 The only difference is that after I make the rough calculations I take my papers to AARP and they use their software. I have been doing this for more than a decade and never a problem. Gives me peace of mind to have 2-3 people looking over the calculations and making sure the information is correctly entered. I also make sure I haven't overpaid so that I am not waiting/trusting for a refund. Since I pay quarterly based on an estimate from the previous year and the dividends from some investments vary I usually have to send a small check. Works for me.


Cheers!

 

[rothlev]

IRS.gov get my transcript on line, will have a transcript for free , downloadable from home with the line entries on the filed tax return. This will show the AGI on file with them. You need to register for an account., jump. thru a few identify hoops

 

[USGrant1962]

I used H&R Block's download software earlier this year. When do they typically make the software available for the next tax year (i.e. 2021)?

It is available in November every year. The best price is almost always on Black Friday.

 

[MC Rider]

I use H&R online, then for a few extra bucks have their tax pro review what I did. Usually they change a thing or 2.

 

[RetireeRobert]

I never really thought of the benefit of tax software as getting my refund quicker. I buy tax software to do the taxes. I can’t imagine keeping up with every nuance of the tax code and then finding the forms and filling them out manually.

+1 That is also why I get the software--to do the danged taxes! Saves me from the math errors, the "which form do I need" hunts, the auto carryovers from last year's return, and on and on. Software makes it all "manageable".

 

[MJ]

I was using FreeTaxUSA online for 3 years but for 2020 I bought the H&R Premium for additional tax forms but was disappointed that their paid software charges additional for electronical filing an extension while FreeTaxUSA which is free doesn't so I filed it with them.

 

[ExPatKiwi]

I've started my 2021 tax return using HR Block software and notice a rounding error on the 8606 form. Anyone else seeing this issue?


In 2021 I did a backdoor ROTH contribution of $7,000 nondeductible contribution to my traditional IRA then converted it to my ROTH IRA. I had no basis to start or end the year but did have some earnings in the year. So the software when it divides the nondeductible 2021 contribution in my case $7,000 from line 5 by the converted amount in my case $7,199 to calculate the taxable basis fraction in on line 10 of 0.972xxxxxxx. However, it rounds the fraction down to 3 decimal places 0.972 and then multiplies it by the converted amount $7,199 to work out the total basis on line 14 of $6,997. So it now says my nondeductible contributed amount of $7,000- $6,997 = $3 taxable basis to add to the $199 of earnings for a total of $202 in earnings. Now if I do the calculation long hand I get $7,000 and no $3 taxable basis.


The HR Block software has no way for me to edit the fraction.

 

[Sunset]

I've started my 2021 tax return using HR Block software and notice a rounding error on the 8606 form. Anyone else seeing this issue?


In 2021 I did a backdoor ROTH contribution of $7,000 nondeductible contribution to my traditional IRA then converted it to my ROTH IRA. I had no basis to start or end the year bad did have some earnings in the year. So the software when it divides the nondeductible 2021 contribution in my case $7,000 from line 5 by the converted amount in my case $7,199 to calculate the taxable basis fraction in on line 10 of 0.972xxxxxxx. However, it rounds the fraction down to 3 decimal places 0.972 and then multiplies it by the converted amount $7,199 to work out the total basis on line 14 of $6,997. So it now says my nondeductible contributed amount of $7,000- $6,997 = $3 taxable basis to add to the $199 of earnings for a total of $202 in earnings. Now if I do the calculation long hand I get $7,000 and no $3 taxable basis.


The HR Block software has no way for me to edit the fraction.

Thanks for letting us know.
Please email HR Block software, maybe they will fix it by the time I do my taxes

 

[cathy63]

I've started my 2021 tax return using HR Block software and notice a rounding error on the 8606 form. Anyone else seeing this issue?


In 2021 I did a backdoor ROTH contribution of $7,000 nondeductible contribution to my traditional IRA then converted it to my ROTH IRA. I had no basis to start or end the year bad did have some earnings in the year. So the software when it divides the nondeductible 2021 contribution in my case $7,000 from line 5 by the converted amount in my case $7,199 to calculate the taxable basis fraction in on line 10 of 0.972xxxxxxx. However, it rounds the fraction down to 3 decimal places 0.972 and then multiplies it by the converted amount $7,199 to work out the total basis on line 14 of $6,997. So it now says my nondeductible contributed amount of $7,000- $6,997 = $3 taxable basis to add to the $199 of earnings for a total of $202 in earnings. Now if I do the calculation long hand I get $7,000 and no $3 taxable basis.


The HR Block software has no way for me to edit the fraction.

It's not really an error and it's very unlikely that they are going to change this behavior, though of course you can ask.

Line 10 of form 8606 says "Divide line 5 by line 9. Enter the result as a decimal rounded to at least 3 places." 7000/7199 = 0.9723572718433115710515349354077 so .972 is the number you get when you round to 3 places.

The form does say "at least 3 places", so it's not incorrect to use 4 places, which is how many you need to get your calculation to round off to 7000 exactly, but it's also not required. TTax uses 5 digits, but it will cost you more to switch than the extra tax on the $3.