H&R Block: Total Fail

Users of H&R Block report receiving this message when attempting to prepare their return after the latest update:

“Since you’re claiming the ACA premium tax credit and the self-employed health insurance deduction, your return requires additional calculations that aren’t part of the program. To file an accurate return, we recommend you complete your return with an H&R Block Tax professional.

You must fix this problem before filing.”

At this point the best option for self-employed taxpayers who are or may be entitled to claim a premium tax credit for exchange-purchased insurance appears to be TurboTax, which appears to calculate amounts correctly.

TaxAct software seems to also be able to handle the correct calculations, so may be an acceptable alternative to H&R Block.



7 thoughts on “H&R Block: Total Fail

  1. Just wanted to say thanks for this post. I’ve been using HR Block for probably @20 yrs and my jaw dropped when I saw this error when attempting to complete my return. Just ordered Turbotax per the suggestion above.

  2. Just ran into this problem after filling out all of my taxes. Even the page they’re trying to redirect you to is difficult to find, requiring you to go through multiple pages just to get to where they tell you to upgrade.

  3. Hey got the same problem. I been using H&R software For years. They have rock solid software for years i mean rock solid flawless software for when i use it. But this paints different picture. Such a simple fix. What is the hold up and it’s going to cause me a loyal customer to think twice about paying top dollar or to ever buying their product again. I mean I buy the best most of the times and always use them. But now i have to try “TURBOTAX.” BECAUSE IT MAY WORK RIGHT.

  4. I had the same thing with H & R Block. Used them for years! NEVER AGAIN! TaxAct worked great and I will use them again for sure. Input was a bit different than I was used to but once I got the hang of it, breezed thru it. I had both self-employed insurance deduction and Marketplace insurance calculations, asked the questions, did the input and went right on through to the file portion.

  5. Same experience with H&R Block premium tax software. Completely finished (hours of time invested) input – ran check at the end and received the message “cannot e-file” please go to our offices for a tax pro!!!!! Will take everyone’s recommendation and use other on-line options!

  6. For Self Employed people who’s income is low in recent years and right around the cusp of the minimum income needed to qualify to not be on Medical or Medicaid his can be a tough situation. If you had been on track to make at least 17K but end up short of that then facing a penalty for not making enough money is an obvious financial strain.
    ** Also, the actual income calculation for Self Employed Schedule C seems to not be readily available in a specific format that everyone can apply as well as any information on if there is any assistance for people in this situation since all the information the tax payer will have is always long after the deadline for applying for a subsidy.

    • James, there is no penalty if your income falls short of the minimum come tax time. In those circumstances, the formula will be calculated as if your income was exactly at the 100% of FPL mark. The only problem would be long-term — it’s possible in the future that you could have difficulty establishing your eligibility for ACA subsidies in future years.

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