Does H And R Block Do Small Business Taxes

Why Do Small Businesses Get Audited

Small businesses and business owners may be audited for several reasons. Those can include a mismatch of your tax return and tax forms reported by other businesses, excessive expenses, business losses, missing income, and high deductions. If you underpay your taxes, you could also wind up getting extra attention from Uncle Sam.

According to the IRS, there were 509,917 tax returns audited for the 2020 tax year, a very low fraction of all returns.

Is It Worth Becoming A Tax Preparer

If youre looking for a profession that features stability, flexibility, and high earning potential, there are several reasons to consider becoming a tax preparer, especially if youre proficient in math, you exhibit organization and attention to detail, and you enjoy working with clients and helping them save money.

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Turbotax Vs H& r Block: Pricing

While the free versions of both TurboTax and H& R Block can be useful for individuals with basic tax situations, they dont allow you to take some of the most common deductions or report certain types of income. In the paid versions, they allow you to upload tax documents rather than manually inputting the data, which saves time. You also receive access to various levels of tax support. If cost is a primary consideration but youd like a premium tax filing experience, H& R Block comes out on top.

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A Quick Look At H& r Block

H& R Block has provided consumer tax filing service since 1955. Its become one of the most popular filing services since then, because it combines simple tools and helpful guidance. Thats useful whether youve never filed taxes or whether youve been filing for decades. Of course, tools and guidance come at a price. H& R Block currently offers four online filing options. You can see the choices and their prices and features below:

The cheapest filing option is the free option. It lets you file your federal return and all state returns for free. The catch is that this options works for just basic returns. The major forms that it supports are the 1040, Schedule EIC for the earned income tax credit and Schedule 8812 for the Additional Child Tax Credit. You can also use this form with some other common tax forms: Form 1099 , 1098 and 1095 . Filing other forms will require you to upgrade to a paid plan.

Which Is The Better Tax Software Platform H& r Block Or Turbotax

Both H& R Block and TurboTax are reputable tax filing services and both companies offer free plans for simple tax preparation. H& R Block is cheaper than TurboTax, so you might be swayed to sign up with H& R, however, this depends on your needs. H& R Block offers additional financial services that TurboTax does not have, plus H& R has a tax advisory service to help you with your H& R Block taxes if you ever get stuck.

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Best Overall: H& r Block

H& R Block

We chose H& R Block as best overall because it is a trusted name in tax preparation, and its tax software for small businesses and business owners offers an excellent user experience and covers a wide range of tax situations. It offers a straightforward user interface that makes it easy to do your taxes accurately the first time.

• Online version includes self-employment and small business income on your personal tax returns

• Option to upgrade for on-demand assistance from a tax expert

• Mobile app allows you to upload tax documents and track filing status

• Business editions are priced higher than competitors

• Some functionality may not be available on mobile

H& R Block is a well-known brand in personal and business tax preparation. It was founded in 1955 and has prepared more than 800 million tax returns. If you want to do your own taxes, you can choose between online and downloadable versions of H& R Blocks tax software. For the 2019 tax year, H& R Block prepared almost 22 million tax returns and nearly 9 million people used H& R Block Online to do their taxes.

The software program does a good job of walking you through complex tax situations. If you think youll need extra help, you can upgrade to Online Assist, which allows you to do your taxes on any device with unlimited, on-demand help from a tax pro. It costs $159.99 for Premium or $194.99 for Self-Employed, plus $49.99 per state.

If You’re Getting A Tax Refund

No matter how you file, you can choose to receive your refund in several ways:

• Direct deposit to a bank account.

• Existing H& R Emerald Cardholders can load refunds onto their cards.

• Loaded onto an Amazon gift card .

• Spruce mobile banking.

• Apply the refund to next years taxes.

• Direct the IRS to buy U.S. Savings Bonds with your refund.

You have the option of paying for the software out of your refund, but theres a $39 charge to do so.

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Who Should Use H& r Block

For DIYers, H& R Block makes tax preparation simple by walking them through the process with interview-style questions, clear instructions, and in-depth explanations for different income types, deductions, and tax credits.

Customers can prepare their tax returns online, have their DIY return reviewed by an expert, or turn their return over to a virtual tax pro to handle preparation and filing from start to finish.

This range of options makes H& R Block a good tax software tool for people who want to try filing on their own, but also want the option to call in professional help if they have questions or get stuck.

Should You Use H& r Block

• Frequently Asked Questions

When it comes to doing your taxes, you have many options to choose from. One of them is H& R Block, a retail tax firm similar to competitors like Jackson Hewitt and Liberty Tax Service. If your tax situation is basic and uncomplicated, you will likely be fine with any tax service option, including filing with an H& R Block tax professional. However, if your taxes are complicated or you want to fully explore your options, it may be worthwhile to carefully compare H& R Block to competing tax services.

Keep reading for a brief explanation of how H& R Block stacks up against alternative options.

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H& r Block Is Closing Offices What Does That Mean For Small Business Tax Professionals

As part of its annual review, H& R Block has decided to close over 400 smaller offices across the nation due to lower profit margins and diminishing sales. The result of too many offices, too close together, has created a decreased consumer need for the companys long standing, wide-ranging tax preparation services. Combined with the surge of do-it-yourself tax preparation technology such as TurboTax or H& R Blocks own DIY software, the verdict from Wall Street has been a 20% percent plunge in stock market pricing in the last week alone. The company has said they do not plan on any reductions in their workforce- the closures make up only 4% of the companies 10,000+ company-owned and franchise locations,

Online tools and newer tax laws have increasingly lowered the complexity of filing annual tax returns for millions of American taxpayers. Although H& R Block may be suffering from over-saturation in the marketplace, they plan to retain all of their employee population, in addition to making changes to pricing structures and continuing to promote their user friendly online tools.

2. Help clients put together key performance indicators, establish where clients are now, what they hope to achieve, and how they should plan to get there. Cash on hand, revenue growth, profit eating, and gross margin year over year are distinguishing mile markers for both small and medium businesses alike.

Susan Amsler

Small Business Big Potential

For small business owners, were much more than your one stop tax shop. We offer additional services to keep your finances streamlined.

Beyond small business tax returns, we can help you control your cash flow with professional bookkeeping and BAS services. We can help you maximise the instant asset write off for small businesses.

Our range of services are aimed at managing your money all year round.

FIRST BAS FREE* OFFER:

To prove our commitment to you, we are offering a FREE BAS to all first time* BAS clients.

Youve trusted us with your tax return in the past now give us a chance to show how we can help with your BAS.

Plus, if you complete all 4 BASs with us in a financial year, you will receive 10% off* that years tax return!

The Quarter 1 BAS due date is just around the corner , so take advantage of our FREE FIRST BAS* offer and book an appointment today.

*Terms & conditions apply.

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How H& r Block Stacks Up Against The Competition

H& R Block provides an easy-to-use platform, similar to meeting with a tax preparer. H& R Block walks you through an interview process, much like TurboTax, but itâs a little bit cheaper. TurboTax charges up to $119 for federal tax filing for its highest âdo-it-yourself taxâ package, while H& R Block charges up to $109.99 for federal tax filing for a similar package.

Similar to other online tax software programs such as TurboTax and TaxSlayer, if you need help along the way, youâve to upgrade to another pricing tier or pay extra to get it. But whatâs unique about H& R Block is that their options for tax experts help go beyond your computer screen. Starting at $80 to file federal tax returns , you can work with a tax professional virtually, in an H& R Block office, and by dropping off your tax documents at an office.

And while H& R Block tries to upsell you while filing your taxes, itâs not overwhelming compared to TurboTax, which attempts to upsell you multiple times while using the software.

H& R Block Help And Support

Support is offered in many different capacities. Even if you dont pay for the unlimited help, you still have access to on-demand chat and phone support and community Q& A forums. H& R Block also has a feature directly on its site to check the status of your refund.

With the premium add-on of Online Assist, you receive on-demand live chat and video support plus screen-sharing on any device.

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Should You Enter The Irs Filing Season Program

The IRS does not license tax return preparers or impose any educational or other requirements on them. Why? Because it’s not legally authorized to do so. But the IRS does have a voluntary registration program: the Annual Filing Season Program. To join this program, you must have a PTIN and complete 18 hours of tax continuing education. This program includes a six-hour federal tax law refresher course with the test. After completing these requirements, you’ll receive an Annual Filing Season Program Record of Completion certification from the IRS. You’ll also get listed in an IRS online database of tax preparers. This record is officially called the Directory of Federal Tax Return Preparers with Credentials and Select Qualifications. Being listed in the directory can help you get business. In addition, Annual Filing Season Program participants have a limited right to represent their clients before the IRS. They may do so before revenue agents, customer service representatives, and similar IRS employees, including the Taxpayer Advocate Service. For more information, refer to the IRS Annual Filing Season Program web page.

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 have information to complete Schedule D forms.

In some cases, the 1099 forms will be enough for H& R Block to do the work for you, but that wont always be the case. This can be cumbersome compared to TurboTax which offers several integrations.

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Products Offered By H& r Block

H& R Block offers four online tax-filing options: Free Online, Deluxe, Premium and Self-Employed.

• Free Online: Like other major tax-filing services, H& R Blocks Free Online version allows you to file a basic Form 1040 and take several common tax breaks such as the standard deduction, earned income tax credit, education credits and additional child tax credit. But H& R Blocks free version is better than most because it can also handle unemployment income, bank interest and dividends income, student loan interest, and schedules 1 and 3 for a total of 39 tax forms in all.
• Deluxe: You may need to upgrade to the Deluxe version if you want to itemize deductions on Schedule A, you contributed to a health savings account in 2021, or you had child and dependent care expenses.
• Premium: The Premium version which includes everything in Deluxe is a good choice for investors and landlords who need to file a Schedule D or E or have K-1s.
• Self-Employed: Freelancers and gig workers can report self-employment income on Schedule C using the Deluxe or Premium editions. However, small-business owners will need to upgrade to the Self-Employed version if they want to claim business expenses and report all business deductions and asset depreciation.

What It Looks Like

H& R Blocks interface is visually simple, straightforward and easy to use, and it steps up to explain concepts as you go. Skipping around to specific spots can be a little tricky, but a banner across the top keeps track of where you are in the filing process.

Embedded “learn more” links provide more information without having to wander around, the help menu is visible from all pages, and you can click to access the chat support portal throughout.

A price preview button up top tells you which package youre buying, whether youve also selected add-ons, and how much your total software bill is so far.

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How Much Does H& R Block Tax Preparation Cost

The cost of H& R Block tax preparation greatly depends on your financial situation, your geographical location and if youre using the software or a tax professional at a local office. According to the firms annual reports, the average fee is $147 per return, which is often a 1040 with a state return and no itemized deductions. However, if you were to add itemized deductions and a Schedule C with business income, then this fee could easily double or even triple. Plan on spending a certain amount per form.

According to our own research, we found the average return done at a local office was about double this $147 per return rate as seen in our table below:

NOTE: With most of these prices submitted, most were for a simple 1099 and a few forms/deductions. Your results will greatly vary, so its best to use these numbers as an estimate.

As for the online option, H& R Block offers three options: the Free Edition, Deluxe and Premium package. The Free edition, which is best for new filers and simple returns, will be free for federal and $29.99 per state filed, while the Deluxe version, best for homeowners and deductions, will cost $54.99 plus $39.99 per state filed. Lastly, the Premium version, ideal for investors and small business owners, will pay $79.99 plus a $39.99 per state filing fee.

: Basic , Deluxe , Premium and Premium and Business . Like the online options, each product offers various features and benefits.

Get Your Ptin From The Irs

Anyone who prepares federal tax returns for money must have a valid Preparer Tax Identification Number . You obtain it from the IRS. Getting a PTIN registers you as an “unenrolled preparer,” granting you the minimum level of clearance to prepare federal taxes. You use the PTIN to identify yourself as a paid preparer in the returns you draw up for your clients. You can obtain your PTIN online, and it’s free. To get a PTIN, you must

• Be at least 18 years old
• Provide your address
• Provide your Social Security number
• Explain any felony convictions, and
• Explain if you owe money to the IRS

There are no other requirements. But, if you have felony convictions or owe money to the IRS, it might hold up your PTIN.

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