Turbo Tax compared to H&R Block

[ownyourfuture]

I have been using Turbotax for at least 20 years, and am quite happy with it. The difference in price for the other tax programs ($10, $20, $30??) is not enough for me to make a change.

To me, the biggest advantage of any software package, is the ability to download brokerage forms directly to the program. 3-4 hours of reading, inputting, checking and checking again, done in 30 seconds.

+1 on both points!

 

[ownyourfuture]

TT vs Block?

I thought posts about religion were not allowed on this board

Pretty tame so far. As long as it doesn't morph into a Apple vs Microsoft war, we should be OK.

 

[jimbee]

Pretty tame so far. As long as it doesn't morph into a Apple vs Microsoft war, we should be OK.

Apple vs. Microsoft is easy. Neither.

 

[neihn]

I too used TT for many years. Until 2006 or may be 2007, they decided to not allow user to install the software on two computers as it used to do. I switched to HRB and never considered to switch back. Although they reversed the decision later but it was too late to get me back. They lost me forever as a customer.

 

[Jerry1]

Pretty tame so far. As long as it doesn't morph into a Apple vs Microsoft war, we should be OK.

Ford vs Chevy? (I know - Toyota)

 

[Texas Proud]

Well, I got an interesting problem....


The Sub S that I own amended their tax return and is not claiming a research tax credit... for 3 years it is about $2,000 for me...


However, H&R block does not do this... I have gone into the forms and am inputting stuff to see what happens in the end but nothing shows up...


I do have the problem of not having to pay any tax, but I should have a carry forward... but even when I went in and raised my income where I would owe taxes nothing shows up...


Now, I am expecting to see something which is why I am noticing nothing... if I had input this when it first happened I would never have known it was not on the form...


Still looking as I would like to keep that credit going forward so I can use it when I have to start paying taxes in a few years...

 

[RunningBum]

Well, I got an interesting problem....


The Sub S that I own amended their tax return and is not claiming a research tax credit... for 3 years it is about $2,000 for me...


However, H&R block does not do this... I have gone into the forms and am inputting stuff to see what happens in the end but nothing shows up...


I do have the problem of not having to pay any tax, but I should have a carry forward... but even when I went in and raised my income where I would owe taxes nothing shows up...


Now, I am expecting to see something which is why I am noticing nothing... if I had input this when it first happened I would never have known it was not on the form...


Still looking as I would like to keep that credit going forward so I can use it when I have to start paying taxes in a few years...

I'm trying to parse what you're saying. It's not easy.

Taking a guess:
You've had a tax credit form an investment that you've been carrying forward each year, because you've been unable to use it, or at least not all of it.

This year, there was no credit. You still should be carrying forward a previous credit but since you didn't have a credit this year, H&RB did not do anything with the credit, which would keep you from carrying it forward to a future year.

Is that about right? If not, maybe someone else can figure out what you wrote, or you can write it more clearly.

I had a similar problem with the foreign tax credit. I get a credit every year because I hold VG Total Intl in my taxable account. Some years I don't owe any tax so I can't use the credit that year, and it carries forward. TT always handled this. I switched to H&RB one year and since i could not use the foreign tax credit, it simply did not submit form 1116, and this ended my carry over. I did not notice this until after I filed. In fact I didn't notice it until the next year, when I tried to use the carryover I was entitled to me, and the IRS said I couldn't since there was no 1116 included the year before.

What I did was file an amended return for that year, on paper, and included the form 1116 which should have been filed. If I couldn't have forced H&RB to generate the form, I would've done it on paper.

Sounds like you've noticed this before filing, which is good, but now you need to figure out how to force H&RB to file that form. Good luck with that, I didn't find a way to do it for 1116. You may have to resort to filing on paper rather than E-filing, and including that form. Or switch to TT, which may handle it.

This was a major reason why I won't use H&RB again. Was it worth the $10 or $20 you saved for this headache?

 

[Texas Proud]

RunningBum,



Thanks for the reply, but your guess was off... I will explain a bit more...


I just got revised K-1s from a Sub S for 3 past years... the revision was moving some expenses into a research & development tax credit. I am looking at if I should amend returns for 2015, 2016 and 2017 to claim the credit for some year in the future.


I went into the 2015 program and input the new K-1 and I owed a bit more in taxes (more income, less ACA credit) but did not see anything about the tax credit. I did some digging and H&R does not deal with this at all... so I went into the forms (after a bunch of searching) to just plug the number in...


Well, still nothing... I have clicked a number of options and the credit just does not show in any form... SOOO, decided to increase my income by $40K so I would have a tax liability and see if it showed... nope...


Interesting that you say that a FTC can carry forward... I have had some the past few years and have not been able to use them... I will now have to look to see what H&R is doing with this... At least when I had a tax liability it did the FTC correct...

 

[ocean view]

I have no experience with H&R, but do for the R&D credit from my working days.

The R&D credit is calculated on form 6765. It is one of the many credits that is summarized and then reported on form 3800, General Business Credits (GBC). As the R&D Credit is a “business credit” I would not be surprised if it was not a supported form in Individual tax software. That said, the 3800 probably is supported and is where you probably should enter the credits passed through to you. It is also where you would track your carryovers.

If you have other GBCs, such as Low Income Housing or Energy Credits, be aware that there are ordering rules on how these get utilized. Also, GBCs can be carried back 1 year and forward 20.

A quick read through the Form 3800 instructions would probably be beneficial to you.

 

[Texas Proud]

I have no experience with H&R, but do for the R&D credit from my working days.

The R&D credit is calculated on form 6765. It is one of the many credits that is summarized and then reported on form 3800, General Business Credits (GBC). As the R&D Credit is a “business credit” I would not be surprised if it was not a supported form in Individual tax software. That said, the 3800 probably is supported and is where you probably should enter the credits passed through to you. It is also where you would track your carryovers.

If you have other GBCs, such as Low Income Housing or Energy Credits, be aware that there are ordering rules on how these get utilized. Also, GBCs can be carried back 1 year and forward 20.

A quick read through the Form 3800 instructions would probably be beneficial to you.

Thanks, yes I have found the 3800 in H&R... but did not see how to get it to move forward to the return.... once I find out I will have to see how much current dollars I will have to pay to take this credit forward...


Managing your ACA credit means you do not get to use other credits.... I have my taxes down to zero and only get refundable credits right now...

 

[ocean view]

Thanks, yes I have found the 3800 in H&R... but did not see how to get it to move forward to the return....


Managing your ACA credit means you do not get to use other credits.... I have my taxes down to zero and only get refundable credits right now...

What do you mean by “once I find out I will have to see how much current dollars I will have to pay to take this credit forward...”? This doesn’t make sense to me.

I disagree that you can’t use other credits when you claim a Premium Tax Credit. Last year I took PTC, FTC, carryover residential energy credit and child tax credit while still in the 15% bracket, so not high taxable income.

There are ordering rules for credits and while 3 of the 4 credits I used are not refundable credits, the non-refundable credits get applied against your tax liability first. If you are not able to fully utilize them, then they can be carried back and/or forward. The PTC gets applied in the payment section of the return (treated equally as withholding or estimated payments) and is refunded if the PTC exceeds your total tax.

Btw, the GBCs have a 20 yr carryover life. If you can’t fully utilize them after 20 years you can then take them as a deduction. So not entirely worthless, you may just have to wait a long time to realize their benefit.

 

[RunningBum]

Managing your ACA credit means you do not get to use other credits.... I have my taxes down to zero and only get refundable credits right now...

Maybe for you, but you the way your word it makes it sound like a rule that you cannot get other credits. Not true. I got to use a little of my FTC credit this year, and also got an ACA credit.

 

[2018]

Hi, I'm a TT user for last 10 years. I previously used HRB for about 5 years but had some issues with a mix of rental properties and found TT to be easier for my needs.


I would say either will work for uncomplicated taxes.

 

[Texas Proud]

What do you mean by “once I find out I will have to see how much current dollars I will have to pay to take this credit forward...”? This doesn’t make sense to me.

I disagree that you can’t use other credits when you claim a Premium Tax Credit. Last year I took PTC, FTC, carryover residential energy credit and child tax credit while still in the 15% bracket, so not high taxable income.

There are ordering rules for credits and while 3 of the 4 credits I used are not refundable credits, the non-refundable credits get applied against your tax liability first. If you are not able to fully utilize them, then they can be carried back and/or forward. The PTC gets applied in the payment section of the return (treated equally as withholding or estimated payments) and is refunded if the PTC exceeds your total tax.

Btw, the GBCs have a 20 yr carryover life. If you can’t fully utilize them after 20 years you can then take them as a deduction. So not entirely worthless, you may just have to wait a long time to realize their benefit.

Maybe for you, but you the way your word it makes it sound like a rule that you cannot get other credits. Not true. I got to use a little of my FTC credit this year, and also got an ACA credit.

I worded it badly... but if you read it was in the second part of my stmt...


I have zero tax liability because I am managing for ACA credit... because I have zero liability I do not get to use most of the credits.... I only get refundable ones...


I could up my income to be able to use the credits but would lose the cost sharing and lower deductible on the silver plan... that is worth a good amount for me...

 

[ocean view]

Okay I get it. Do you foresee using them in future years and still maintaining your ACA benefits? Did you also check to see if you paid tax in 2014? If so, the 2015 credit could be carried back.

If it were me, and I would amend the returns (unless the cost to do so was greater). You never know how ACA or something else in your tax scenario will change to take you out of the zero tax liability. Then you might be thankful to have those in your pocket.

 

[Texas Proud]

Okay I get it. Do you foresee using them in future years and still maintaining your ACA benefits? Did you also check to see if you paid tax in 2014? If so, the 2015 credit could be carried back.

If it were me, and I would amend the returns (unless the cost to do so was greater). You never know how ACA or something else in your tax scenario will change to take you out of the zero tax liability. Then you might be thankful to have those in your pocket.

Interesting... just looked and yes I did have a liability for 2014...


But, I would have to carry forward the 2016 and 2017 and I expect to have some for 2018 also..


Yes, I will have a tax liability in a few years when I hit 65 and start Medicare... I will then be converting as much as I can without going into too high a bracket... so might just carry forward all of it...


Still have to dig into the program to figure out how to do it... just have been lazy this week... (probably next week also )