Using H&R Block VS Using a CPA?

Question

What are the pros and cons of using H&R Block or a CPA?

Answer 1

H & R Block offers a good service for basic returns. However, they do charge by the form. If you have a mortgage, children and the occasional stock sale it can actually end up more expensive than a CPA (CPA's generally charge by the hour).

The person who said CPAs overcharge because they passs it to an associate does not understand the process. I work for a CPA. he interviews the client and passes the file to me. I prepare the return and he reviews it. He then discusses the results with the client. When you engage a CPA you are not just paying for someone to number-crunch. You are paying to ensure that:
1. your return complies with all applicable tax laws
2. you obtain the maximum tax benefit.
I am good at what I do but my boss (the CPA) is the one that adds value for the client.


As for the person who mentioned Turbotax, I can only observe that most of our new clients in the past year have come from people who have prepared their returns using Turbotax or similar in previous years. Computer programs cannot ask every conceivable question. You need a modicum of current knowledge to file anything other than the most basic return. Tread warily if you choose that route.

In summary, if you have a job (without stock options), children, mortgage and little else, H & R Block will probably be your best bet. As a former Block employee, I can tell you that they handle those returns well, as a rule. If your affairs are more complicated you should obtain quotes from tax-experienced CPA's, Enrolled Agents and H & R Block. If you anticipate your affairs becoming more complicated in the next few years you should consider establishing a relationship with a CPA/EA as that is likely to benefit you in the long run.

Answer 2

The most common difference is fees. Generally a CPA will not prepare a return for less than $500, while Block may do the same return for $150. If your return is relatively simple that makes the choice pretty easy. The more complex your return the less this difference will be.
Experience is another issue. Some Block offices have very experienced staffs, other do not. Some CPAs have not done tax returns, other than their own, since college.
If you have the need for other accounting services the CPA may be able to supply those where Block very likely would not.

I don't presently work for Block or a CPA but have done both in the past and would suggest an independent tax professional, that does only taxes, could be a better choice over either of those in most cases.

Answer 3

I would never use a big tax chain. This could be because I am testing to become a CPA and currently work for a CPA and I see how many people come into my office that have been screwed by a big tax chain. They don't care. They just try to get as many returns done as they can, without even batting an eye. Where as your local CPA firm will probably read your your return at least twice before it is ever sent to the IRS. Besides, say you are audited, and end up in court, the only people that can represent you, besides yourself, is an Attorney, an Enrolled Agent, and a CPA. And you will not find many of them working at a big tax chain.

Answer 4

I actually like Block over a CPA because a CPA does more than just taxes.
Taxes are Block's specialty. Don't be afraid to request an experienced preparer either.
Beginners need to start somewhere but most Block offices will not hand a difficult return to a first- year preparer.
Each year, Block preparers have to take additional courses in tax topics. CPA's have to take continuing education credits, but those do not have to be in tax.
Actually, a few CPA's get credit for taking Block courses!

Answer 5

If you are using block, go to a premium office and utilize the Enrolled Agents working for them. Generally if you walk into a regular office, you may get a first year associate who just passed one basic income tax course and might make some simple mistakes. An Enrolled Agent has a better basis of tax knowledge and instructional hours underneath them, and generally have more experience in taxation. Be wary of private CPA's that do not specialize in taxation.

Answer 6

There are some very competent that work for Block. There are also some very incompetent ones. I have seen incorrect returns from Block and I have seen incorrect returns from CPAs. I have seen CPAs that grossly overcharge and ones that undercharge.

You need to find someone you like and trust and whom has the educational background to accurately complete your return.

Answer 7

A lot of talk about fees in these answers. I am actually a public accountant and we have picked up many clients from H & R and our fees are actually lower. If you want to ensure that you are getting the best and most accurate work done use a CPA, even if fees are a little higher it will pay off in the end.

Answer 8

CPAs often pass of taxes of normal folk to associates so no advantage & high cost. Unless you have a complicated business should spend the 1/2 hr & do yourself or go to H & R.

Answer 9

it always is fact dependent. How complicated are your returns? If simple then do them yourself. If slightly complicated the H&R is fine. If many forms to fill out then definately an accountant. H&R folks just use a software and plug in the numbers. A good accountant while $$ can get you back the maximum refund.
I use a CPA my self and she is fantastic as she ask me questions and send me updates about changes in the tax laws and reminds me about deducts that I may foorget during the year.

Answer 10

I had the same thing happen to me. I had H&R block take the fees out of my tax return, and because of this I am getting a check verus direct depoist. The response from the irs was they didn't know if the thrid party would have taken the same fees out of the stimulus. Therefore those who had this done will be getting a check, even if they had direct depoist for their tax refund.