I’ve decided to use the H&R Block online software this year on recommendation from this board. However, I’ve come across a question that I’ve had with TurboTax too, and thought I’d ask.
I’ve earned money as an offsite contractor (writing work), getting a 1090-MISC. Does that mean I need to pay $75 for the Premium software that has Schedule C in it?
All the online versions of H&R Block include support for Schedule C, except for the free version. All that the Premium version claims to do is “Maximize deductions for self-employment income (Schedule C).” That probably means something like it has some more help screens than the other versions. Don’t worry, if you choose too low a version, it will happily let you upgrade later (for a fee, of course).
But OMG the prices for their online software are absurd! Plus there is an additional fee of $29 to $39 if you want to file a state return. You can buy a copy of H&R Bloc to install on your computer for just $20, including state. Click here and use code EMCAPNK29 at checkout. This may be a limited time offer, but there are a heck of a lot of offers for $20 or less if you just look.
Really? The comparison page here lists Schedule C as a pure feature — nothing about enhanced. That implied to me that it wasn’t a feature on any other version.
The Newegg code is a tempting option, though. The site came recommended here, as I said; would that likely apply to the straight software as well?
Here is the page for the Basic version.
Scroll down almost to the bottom and click on “View Requirements & Supported Forms.” That will cause the bottom section of the page to expand. In the expanded section, click on “Federal Tax Forms” and a pdf list of all supported forms will open up. You can repeat this exercise for any version. You will see Schedule C listed. In any case, if you find the version you bought is inadequate for your needs, they will offer you the opportunity to upgrade.
I use the downloaded software. It works fine. It’s my personal paranoia, but I don’t want such sensitive information readily accessible from the web. I’d rather keep it on my own computer. Yes, I realize the NSA can hack my computer.
Here are screenshots from the downloaded version of H&R Block Deluxe Federal plus State. You can see where I entered a phony Form 1099-MISC and the resulting Schedules C and SE that were created. (I did not type in all the required information, so some fields are blank.)
OK, I see it. So what should I be thinking about when deciding whether to use the online version or the downloaded software? What’s the difference?
The main selling point for me on the desktop software is that the price (I used the premium version) included one state tax return prep, and 5 federal efiles. So I was able to download it once, and both me and himself could use it for federal, buy one extra state, and the total cost would ultimately be less than if we both did it online.
We both have Schedule Cs, and my return is fairly complex on top of that. I actually found H&R Block’s software easier to use than previous years’ TurboTax. TurboTax was going to jump in price for us this year, since they moved Schedule C support up two levels. H&R Block was cheaper.
If it’s just you, I’d probably just use whatever combo / package was cheapest for what you need. Don’t forget to add in the cost of the state tax return where needed, and just run the numbers.
Damn, the promo code is expired. Ah, well. I may still get the software at full price anyway, since it’s only $10 more than the online version, which I’d have to pay every year.
Tangentially related question to the above: when I search for coupons and promo codes online, what should I look out for? How do I tell which sites are reputable for stuff like this?
It’s $25.90 at amazon, no code required.
Regardless of whether you use the online or download version, you need to buy a new copy each year.
Aha, thanks!
And I sort of figured that would be the case. Ah, well.
Hah, and I even forgot I had a balance left on a gift card I won a while back!
Thanks for the help!
Okay, so I have another question: I have insurance coverage from the ACA Marketplace. For part of the year (while I was employed as a contractor with no benefits, only salary, and while simultaneously doing the offsite contracting work mentioned in my OP), I paid partially for premiums. Do I list that under Self-Employed Health Insurance Premiums, or under the Insurance Premiums line in Medical and Dental Expenses deductions?
I ask because if it’s the former, the program tells me that “Your insurance is deductible. However, since you have marketplace health insurance, your return requires additional calculations that aren’t part of our program. To file an accurate return, we recommend you work with an H&R Block tax professional.” And tinkering with the numbers in the program, the difference is about $70, which would be wiped out by the costs of going to said professional. If I can just put it under Medical and Dental Expenses, maybe I can avoid that.
Anyone know offhand?
I think, see Pub. 974 (pdf), page 31 on. It’s a little more complex. If you were eligible for employer insurance through a spouse but opted not to, you might not be able to take a deduction.
“Medical and Dental Expenses” as in Schedule A? I don’t know your situation, but unless you had a particularly unhealthy year you almost certainly can’t claim that as there is a minimum.
I’ve decided not to take the deduction. The software won’t let me proceed, and the amount is likely to be less than what it’d cost me to have it professionally looked at.
It’s really annoying, though.
I won’t need the answer to this until August, our benefits open season at work, but reading the IRS publication is making my head hurt.
So my employer offers an HMO, a PPO, or a high-deductible plan (for a lower premium). I chose the high-deductible plan this year, on the theory that my only predictable non-preventive health care expense is orthotics, which are specifically excluded from coverage on all the plans available to me. I figured this way, I could open an HSA, and throw money in there for vision, dental, orthotics, etc. But I am apparently getting to the point in my life where most years, something or another that requires non-preventive care is going to happen, and anytime anything at all happens, it seems to cost a minimum of $1,000 (which is the PPO annual deductible - I refuse to deal with HMOs because of really shitty prior experiences). So I’m thinking of switching back to the PPO once I get the chance.
This year, the annual HDHP deductible is $2,500, and the PPO deductible is $3,500, but if you pick the PPO, my employer is self-insured for expenses between $1,000 and $3,500 (you file claims and get reimbursed). So can I still have an HSA if I go with the PPO, or not? The relevant IRS publication says:
"Qualifying for an HSA
To be an eligible individual and qualify for an HSA, you must meet the following requirements. You must be covered under a high deductible health plan (HDHP), described later, on the first day of the month. You have no other health coverage except what is permitted under Other health coverage, later."
But Other Health Coverage is defined as:
"You…generally cannot have any other health coverage that is not an HDHP. …
Other employee health plans.
An employee covered
by an HDHP and a health FSA or an HRA that pays or reimburses qualified medical expenses generally cannot make contributions to an HSA. Health FSAs and
HRAs are discussed later. However, an employee can make contributions to an
HSA while covered under an HDHP and one or more of the following arrangements.
Limited-purpose health FSA or HRA. These arrangements can pay or reimburse the items listed earlier under Other health coverage except long-term care.
Also, these arrangements can pay or reimburse preventive
care expenses because they can be paid without
having to satisfy the deductible.
…
Post-deductible health FSA or HRA. These arrangements do not pay or reimburse any medical expenses incurred before the minimum annual deductible amount is met. The deductible for these arrangements does not have to be the same as the deductible for the HDHP, but benefits may not be provided before the minimum annual deductible amount is met."
Which deductible are they talking about??? Would I be OK, because the HDHP deductible is actually $3500, which is above the limit? Or not, because the HRA deductible is $1,000? Seriously, man, I think the IRS makes this shit confusing on purpose.
I have a PPO with an HSA. There is nothing specifically excluding you from HSA, but it depends on the terms of the PPO. I think you might be okay, but ask the administrator/try to navigate their no-doubt byzantine website.
Which administrator? Our office administrator? He has been useless every time I’ve asked him anything to do with taxes - it’s CYA all the way, baby. (It’s a smallish company, 50-ish people.) We certainly don’t have an HR website/intranet.
Is there a health company that administers it? Now that I think about it, I might not know exactly how PPOs work, especially for small companies! But mine is statewide, so there is a clear contact.
There is (for the HRA - the PPO is BCBS, and I doubt they will advise me on the tax implications of an account that they don’t administer) - I don’t know offhand, because it hasn’t applied to me for a couple of years, but I can check. Good idea.