Review of Online Filing Services TurboTax and H&R Block

With Telefile no longer being offered by the IRS, more taxpayers are filing online this year than ever before. It is, however, important to know if your tax situation is a correct fit for the online providers. With that in mind, after filing several returns with two of the more popular companies, TurboTax and H&R Block, here are the pros and cons of each.

Many Americans today may qualify for free online tax preparation and filing. It is generally available to anyone with an adjusted gross income of $50,000 or less. Those wishing to take advantage of the offer should visit www.IRS.gov and look through the list of twenty different online providers. Some other qualifications may apply. The "free file" option is not always available through the company's regular web site; most are available only through links at the IRS site.

Two of the more popular online providers, TurboTax and H&R Block, offer the same services at about the same price, but each has a different way of walking a taxpayer through their return. It must be noted, if you are considering using an online return preparation service, it works best for those with less complicated tax needs.

If you only have one or two W2s and choose to use the standard deduction, filing online is a great option and an easy way to get your refund sooner, especially if you use direct deposit. If your return is more complicated, with additional forms and schedules, the online services can still meet your needs, but you must be prepared to understand all of the tax terms to make sure you answer the software's questions correctly to best utilize the service. If you do have a more complicated tax situation, you would do much better to sit down with a live tax preparer who can review all of your documents.