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Cash App Taxes vs. TurboTax vs. H&R Block

By Lauren Graves

🗓️

Updated: December 28, 2023

Cash App Taxes vs. TurboTax vs. H&R Block

Moneywise.com / Moneywise.com

By Lauren Graves

🗓️

Updated: December 28, 2023

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With tax season upon us, it's time to choose the best tax preparation software for you. We've done a side-by-side comparison of three of the most popular tax-preparation software plans in the industry: TurboTax, H&R Block and Cash App Taxes.

Each service has its own advantages (and disadvantages), and this means any one of them could be the right tax-preparation software for you.

Overview of tax preparation services

Before we go into a deep-dive analysis of the three popular tax software plans, you can peruse the table below to learn about the basic features of each. Note that Cash App Taxes was previously Credit Karma Tax. The tax software was acquired by Square in 2020 and the name changed, but Cash App Taxes is still free.

Cash App Taxes

File with Cash App Taxes

Cash App Taxes is best for those who have relatively simple tax situations and are looking for truly free tax-preparation software.

But even if you don’t have a straightforward return, you can make this software work for you. For example, unlike TurboTax and H&R Block, you can file free even if you itemize deductions, have investment income, or are self-employed.

Cash App Taxes is an excellent choice for those who have a good handle on filing their taxes and won’t need support. But because this provider does not offer any options for live assistance, paid or otherwise, and doesn’t sell software, it’s not a good choice for anything other than DIY online filing.

TurboTax

File with TurboTax

TurboTax may very well be the best all-around tax-preparation software. The software is comprehensive and can accommodate virtually any type of tax situation, and it makes it easy to find deductions and credits to save more.

File for free with TurboTax Free Edition. ~37% of taxpayers qualify. Simple Form 1040 returns only (no schedules except for Earned Income Tax Credit, Child Tax Credit and Student Loan Interest). Learn more here. To qualify for the TurboTax Free Edition plan, you need to earn W-2 income and take the standard deduction.

If you need to itemize or have other sources of income, you’ll need a paid plan. And it’s important to note that TurboTax has the highest prices of the three. You can also pay for full preparation services or professional support.

TurboTax is great for beginners thanks to its intuitive platform and resources and is especially great for returning customers. But this provider is not a good choice for those on a tight budget.

H&R Block

File with H&R Block

H&R Block is the go-to tax-preparation software for anyone looking to file their taxes with a pro. H&R Block offers excellent online plans for self-filing as well as top-notch professional services at a reasonable price.

With H&R Block’s layered tax-preparation process, you can get started with an online plan and get expert support whenever you need it or even turn the job over to a professional to finish filing for as little as $85. You can either make an in-person appointment or do it all remotely.

In addition, H&R Block also offers tax preparation services for ex-pats starting at $99 for simple returns, not including state and FBAR filing. This is unique because neither TurboTax nor Cash App Taxes provides services specifically designed for Americans living abroad. This provider offers great support but if you have a more complicated return and you don’t plan to pay for expert help, you can save money going with another company.

Pricing and fees

Cash App Taxes: $0

Cash App Taxes does not have different online filing plans at different price points. Everything is free, whether you have a very simple return or you’re self-employed and need to report different types of income, use many forms, and take a bunch of credits.

Cash App Taxes can accommodate most tax situations. Here’s a list of just the most common types of income, forms, and credits Cash App taxes allows.

W-2 income
Small business earnings
Investment income
Rental property income
Form 1099
Schedules A, B, C, D, E, F, and H
Itemized deductions
Child Tax Credit
Mortgage Interest Credit
Education Credits
EITC

This list is far from exhaustive. As you can see, Cash App Taxes is equivalent to the highest tier plan with many tax software providers (usually a self-employed plan).

But you cannot pay for extra support, software downloads, or full preparation services. And one of the main drawbacks of this service compared to others is that you can’t file multiple state tax returns.

Visit Cash App Taxes

TurboTax: $0 – $129+

TurboTax offers three different online plans for filing yourself: TurboTax Free Edition, Deluxe, and Premium. This provider also gives you the option to have an expert file for you. This service, called TurboTax Live Full Service, starts at $129 for basic federal returns.

All TurboTax online plans come with an Audit Support Guarantee, a thorough check of your return before submitting, and customer service Monday through Friday.

Let’s go over the online plans here.

TurboTax Free Edition: $0 for federal returns and $0 for up to one state return

For simple returns using Form 1040 with W-2 income, supports standard deduction or use of Earned Income Tax Credit, child tax credits, and student loan interest deductions.

File for free with TurboTax Free Edition. ~37% of taxpayers qualify. Simple Form 1040 returns only (no schedules except for Earned Income Tax Credit, Child Tax Credit and Student Loan Interest). Learn more here.

TurboTax Deluxe: $69 for federal returns and $59 for each state return

For more complex returns with itemized deductions including those for health savings accounts (HSAs), mortgage and property tax, and charitable donations (over 350 deductions and credits in total). Permits unemployment income.

TurboTax Premium: $129 for federal returns and $59 for each state return

For complex returns with investment income (including crypto sales), rental property income, and over 450 different deductions and credits. Includes support for calculating property depreciation.

Also works for most complex returns with self-employed income, forms 1099-NEC and Schedule C, and business expenses. Offers over 500 deductions and credits including self-employed tax deductions and the ability to import earnings and expenses from rideshare and delivery companies such as UberEats. This version also offers a year-round tax estimator for quarterly self-employed taxes to help you determine your income and estimate what you owe.

Visit TurboTax

H&R Block: $0 – 85+

H&R Block offers four different e-filing plans starting with a free version and working up to the costliest self-employed version.

For an added price, you can unlimited, on-demand help from a tax professional. But if you have the Deluxe online plan or better, you will have access to free live tech support by phone or chat.

H&R Block Free Online: $0 for federal returns and $0 per state return

For simple returns using Form 1040 with W-2 income or Form 1099-G with unemployment income, supports standard deduction or use of Earned Income Tax Credit, child tax credits, and student loan interest deductions.

H&R Block Deluxe: $35 for federal returns and $37 per state return

For more complex returns with itemized deductions including those for HSAs, mortgage and property tax, and charitable donations. Can also be used to organize self-employed income.

H&R Block Premium: $55 for federal returns and $37 per state return

For complex returns with investment income (including crypto sales), rental property income, and more deductions and credits. Supports Schedule D and Schedule E in addition to all forms included with Deluxe.

H&R Block Self-Employed: $85 for federal returns and $37 per state return

For most complex returns with self-employed income, forms 1099-NEC and Schedule C, and business expenses. This version includes guidance for claiming different types of self-employed income and maximizing business deductions, expense-tracking tools for small businesses, and import functionality with ride share and delivery platforms.

Visit H&R Block

Unique features

Cash App Taxes: Free filing

Cash App Taxes is free for all filers for both federal and state tax returns. Here are a few more features that set it apart.

Free audit defense through Tax Protection Plus, LLC – includes correspondence, preparation, and representation.Refunds may be deposited up to six days earlier than usual if made into your Cash App Account.Accurate calculations guarantee – Reimbursement up to $1,000 in the form of gift card(s) if the IRS or state tax authority penalizes you due to calculation errors made using Cash App Taxes.Maximum refund guarantee – Reimbursement up to a $100 gift card if you file with Cash App Taxes and receive a larger refund or owe less when you amend with another tax software provider using the same information.
Free audit defense through Tax Protection Plus, LLC – includes correspondence, preparation, and representation.
Refunds may be deposited up to six days earlier than usual if made into your Cash App Account.
Accurate calculations guarantee – Reimbursement up to $1,000 in the form of gift card(s) if the IRS or state tax authority penalizes you due to calculation errors made using Cash App Taxes.
Maximum refund guarantee – Reimbursement up to a $100 gift card if you file with Cash App Taxes and receive a larger refund or owe less when you amend with another tax software provider using the same information.

TurboTax: Features and software

TurboTax is perhaps the most popular tax-preparation software in the industry. And there are plenty of reasons why:

Optional paid live support or preparation from tax professionals.
Tax Return lifetime guarantee – Accuracy and refund guarantees carry over for up to seven years per return.
Optional paid live support or preparation from tax professionals.
Tax return lifetime guarantee – Accuracy and refund guarantees carry over for up to seven years per return.
100% accurate calculations guarantee – Full reimbursement for penalty fees and interest charged as a result of a TurboTax calculation error.
Maximum refund guarantee/maximum tax savings guarantee – Reimbursement for applicable filing fees if you file with TurboTax and receive a larger refund or smaller tax due when you amend with another tax software provider.
Satisfaction Guarantee – Don’t pay for TurboTax until you’re ready to file, even if you fill out your return.
Import from QuickBooks Online.

H&R Block: Live assistance

H&R Block operates a vast network of local tax preparation offices and stands out for its live assistance services.

Optional live assistance for filing on your own or having your returns fully prepared by a professional in-person or online.
Optional live assistance for filing on your own or having your returns fully prepared by a professional in-person or online.
Free Audit Support Guarantee included with all online plans and optional paid Worry-Free Audit Support for $19.99 when e-filing – free audit assistance includes basic help preparing while support includes correspondence, preparation, and representation.
No Surprise Guarantee – Save 20% when filing next year’s returns if you do not receive transparent pricing, transparent process, free audit assistance, or a free mid-year check-in.
Maximum refund guarantee – Reimbursement for filing fees, plus free optional re-filing, if you discover an error that entitles you to a larger refund or smaller amount due.
100% accuracy guarantee Reimbursement up to $10,000 for penalty fees and interest charged as a result of software errors
100% satisfaction guarantee – Don’t pay H&R Block until you accept and e-file your return.