Which is Cheaper: HR Block or Jackson Hewitt for Tax Services?

Deciding between HR Block and Jackson Hewitt can be a daunting task, especially when it comes to comparing their costs. Both companies have a reputation for providing excellent tax preparation services, but what about the cost? In this article, we will dive into the cost differences between HR Block and Jackson Hewitt, and explore the factors that might make one a better choice than the other.

Comparing the Upfront Costs

There are a few key factors that contribute to the overall cost of using these tax preparation services. First, let's start with the simple question: Which one is cheaper at the surface level?

Typically, you'll find that the price tags for services from both companies are very similar. According to recent pricing information, the cost of basic tax preparation at HR Block can range from $99 to $149, while Jackson Hewitt offers similar services at about the same price point. However, there may be slight variations depending on the location and specific services required.

Guarantees and Additional Costs

One of the primary differences between the two companies is the inclusion of guarantees in the price. HR Block offers comprehensive tax guarantee services with all their prices, which means that if the tax return is audited and the IRS demands additional taxes, they will cover that cost for you. This guarantee is included in the price, making it a significant point for many consumers.

On the other hand, Jackson Hewitt doesn't automatically include this guarantee with their basic tax preparation services. If consumers need it, they can add it for an additional fee. This is where the true cost difference can become noticeable. Jackson Hewitt's guarantee for additional taxes costs $79, adding to their overall price.

Additional Services

Both HR Block and Jackson Hewitt offer additional services that can affect the overall cost. For example, HR Block includes Enrolled Agent (EA) and CPA services as part of their higher-tier packages, which can be valuable for more complex tax situations. These additional services typically start at $499 and can go up to several hundred dollars more, depending on the complexity of the case.

Jackson Hewitt also offers a range of additional services. Their Special Offers can be very economical, with options starting at $99. However, the cost for more in-depth services, such as business returns, can be higher than what HR Block charges at the basic level.

Experience and Expertise

While both companies hire tax preparers, their experience and the team behind the scenes can vary. HR Block's founder, Marvin Block, is well-known in the tax industry, and the company has a strong reputation for being reliable and efficient. Many of their tax preparers are experienced and educated, making them a popular choice for first-time taxpayers and those with complex returns.

Jackson Hewitt, named after self-made millionaire John Hewitt, has a long history in the tax preparation industry. While they have a great reputation as well, their guarantee and pricing structure might make you think twice before choosing them over HR Block for basic tax preparation.

Conclusion

When comparing HR Block and Jackson Hewitt for tax preparation, it's important to consider the following:

Cost: Both companies offer similar pricing for basic tax preparation, but HR Block includes their tax guarantee in the price, making it a more cost-effective option. Guarantees: HR Block's comprehensive guarantees can save you money in the long run, especially in the event of an IRS audit. Additional Services: HR Block and Jackson Hewitt both offer a range of additional services, but these can significantly increase the cost. Consider your needs and budget before choosing one over the other. Experience: Both companies have experienced tax preparers, but HR Block's reputation for efficiency and reliability might be a deciding factor for many.

Ultimately, the choice between HR Block and Jackson Hewitt depends on your specific needs and budget. For those looking for a straightforward, cost-effective solution with a built-in guarantee, HR Block might be the better choice. However, if you value additional services and personal guarantees, Jackson Hewitt could be the way to go.

Keywords: HR Block, Jackson Hewitt, tax preparation cost