Navigating tax season can be complex, and sometimes, you might find yourself needing to switch tax software. Perhaps you're looking for different features, pricing, or simply a change of scenery. If you're a long-time TurboTax user considering a move to H&R Block, you're in the right place! This comprehensive guide will walk you through the process, ensuring a smooth transition.
Ready to Make the Switch? Let's Get Your Tax Data Moving!
Thinking about making the leap from TurboTax to H&R Block? You're not alone! Many people switch tax software for various reasons, from seeking a different user experience to finding a better fit for their specific tax situation. The good news is that transferring your data can be a relatively straightforward process, especially with the recent advancements in tax software. So, let's dive in and get your tax information securely moved to H&R Block!
Step 1: Understanding the Transferring Landscape – What Can Be Moved?
Before we begin, it's crucial to understand what kind of data can typically be transferred and the methods available. This isn't always a "one-click magic" solution, but modern software has made significant strides.
Sub-heading: The Power of PDF and TXF Files
PDF Transfer (Limited Data): Both TurboTax and H&R Block offer some level of PDF import. When you import a PDF of your prior year's tax return, it typically pulls in basic personal information like names, addresses, Social Security Numbers, and your Adjusted Gross Income (AGI). It's a good starting point, but it won't populate all the detailed income and deduction fields.
TXF File (Tax Exchange Format) (More Detailed Data - Primarily for Desktop Versions): The TXF (Tax Exchange Format) file is designed specifically for transferring tax data between different tax software programs. If you've used the desktop version of TurboTax, you might be able to export your data in a TXF format. H&R Block's desktop software often supports importing TXF files, which can bring over a much more comprehensive set of your tax data, including details from various forms like 1099s and W-2s. However, note that online versions of TurboTax generally do NOT allow you to export TXF data directly.
Sub-heading: H&R Block's Direct Import Feature (for Online Users)
Game Changer for Online Users: H&R Block has introduced a "Direct Import" feature specifically designed to help TurboTax online users switch. This feature can directly pull in a significant amount of your prior year's return data (up to 150 fields!) from TurboTax into H&R Block's online DIY products. This is a secure and convenient way to transfer data without dealing with files.
Step 2: Preparing Your TurboTax Data for the Move
Regardless of the method you choose, a little preparation goes a long way.
Sub-heading: Downloading Your Prior Year's TurboTax Return (PDF is Key)
Access Your TurboTax Account: Log in to your TurboTax account for the previous tax year (the year you want to transfer data from).
Locate Your Completed Return: Navigate to the section where you can view or download your completed tax returns.
Download the PDF: Download a PDF copy of your finalized tax return. This PDF will be crucial, even if you plan to use H&R Block's direct import, as it serves as a reliable backup and for verification. Save it to a readily accessible location on your computer.
Sub-heading: Exploring TXF Export (for Desktop TurboTax Users Only)
Open Your TurboTax Desktop Software: If you used the desktop version of TurboTax for the prior year, open that specific year's software.
Look for Export Options: Within the program, explore the "File" menu or "Tools" menu for an "Export" option.
Select TXF Format: If available, choose to export your tax data in the TXF format. You might see an option like "Export to Tax Software" or "Tax Exchange Format."
Save the TXF File: Save the generated TXF file to a memorable location on your computer. Remember that online TurboTax versions typically don't offer this direct TXF export.
Step 3: Initiating the Import into H&R Block
Now that your TurboTax data is ready, let's bring it into H&R Block.
Sub-heading: For H&R Block Online DIY Users: Leveraging Direct Import
Go to H&R Block Online: Open your web browser and go to the H&R Block official website (hrblock.com).
Start a New Return: Begin the process of preparing your tax return for the current tax year.
Look for the "Switching" or "Import" Option: Early in the tax preparation process, H&R Block will often present options for importing prior year data. Look for prompts like "Switching from TurboTax?" or "Import last year's tax return."
Enter Your TurboTax Phone Number: If you see the Direct Import option, you will likely be prompted to enter the phone number associated with your TurboTax account. This is how H&R Block securely retrieves your data.
Review Imported Data: This is a critical step! After the import is complete, H&R Block will show you a summary of the imported information. Carefully review every field against the PDF copy of your TurboTax return. While the direct import is designed to be comprehensive, it's your responsibility to ensure accuracy.
Sub-heading: For H&R Block Desktop Software Users: Importing PDF or TXF
Install/Open H&R Block Desktop Software: If you're using the downloadable software, ensure you have the correct tax year's version installed and open it.
Start a New Return: Begin a new tax return for the current tax year.
Locate the Import Feature: Early in the setup process, or within the "File" menu, look for an "Import" option. It might be labeled "Import from Last Year's Return," "Import from Other Software," or similar.
Choose Your Import Method:
Import PDF: If you're importing a PDF, select the option to import a PDF of a prior year's return. Browse to the location where you saved your TurboTax PDF and select it.
Import TXF: If you successfully exported a TXF file from TurboTax Desktop, choose the option to import a TXF file. Browse to the location where you saved the TXF file and select it.
Review and Verify: Just like with the online import, thoroughly review all imported data. Compare it line by line with your original TurboTax PDF. Manual adjustments may be necessary for certain complex items or if the import wasn't 100% complete.
Step 4: Verifying and Completing Your Return in H&R Block
The import process is just the beginning. The real work is ensuring everything is accurate.
Sub-heading: The Importance of Cross-Referencing
Side-by-Side Comparison: Have your TurboTax PDF open right alongside your H&R Block return. Go through each section and compare the numbers. Pay close attention to:
Personal Information: Names, SSNs, addresses, dependents.
Income: W-2 wages, 1099 income (interest, dividends, capital gains), self-employment income.
Deductions and Credits: Itemized deductions, education credits, child tax credits, etc.
Carryovers: Net operating losses, capital loss carryovers, passive activity losses, and certain credit carryovers are notoriously tricky to transfer via PDF and may need manual entry or careful verification.
Sub-heading: Manually Entering Missing Information
Don't Rely Solely on Import: Even with the best import features, some data might not transfer perfectly. Be prepared to manually enter information for:
Complex investment transactions (e.g., wash sales, specific lots)
Depreciation schedules (especially if you have rental properties or a business)
Less common deductions or credits
Prior year carryovers that didn't import correctly
Sub-heading: Saving Your Work Regularly
Frequent Saves: As you work through your H&R Block return, save your progress frequently. This protects you against accidental data loss.
Step 5: Final Review and Filing
Before you hit that "file" button, one last, comprehensive check is essential.
Sub-heading: Utilizing H&R Block's Review Tools
Error Check: H&R Block, like TurboTax, has internal error-checking mechanisms. Run these tools to identify any missing information or potential discrepancies.
Audit Risk Assessment: Some versions of H&R Block offer an audit risk assessment. While not a guarantee, it can provide insights into areas that might raise red flags with the IRS.
Sub-heading: Consider a Professional Review (Optional but Recommended)
Expert Assistance: If your tax situation is complex, or if you're feeling uncertain about the accuracy of the transferred data, consider utilizing H&R Block's expert review services (available for an additional fee). A tax professional can review your return before you file, providing peace of mind.
Sub-heading: Electronic Filing vs. Mail
E-File for Speed: Electronic filing (e-file) is generally the fastest and most secure way to submit your return.
Print and Keep Records: Regardless of how you file, always print and save a copy of your finalized tax return for your records. Store it securely.
10 Related FAQ Questions
Here are some common questions you might have about transferring your tax data:
How to: Find my TurboTax data file on my computer?
Quick Answer: For desktop versions, TurboTax typically saves files in
Documents/TurboTax/tax_year(e.g.,Documents/TurboTax/2023). You can also use your computer's search function for files ending in.tax20XX(e.g.,.tax2023).
How to: Know if H&R Block desktop software can import my specific TurboTax file?
Quick Answer: H&R Block desktop software generally supports importing prior year H&R Block files and sometimes PDFs from other software like TurboTax. For a more comprehensive import of detailed data, check if your TurboTax desktop version can export a TXF file, which H&R Block desktop often accepts.
How to: Transfer my state tax return data from TurboTax to H&R Block?
Quick Answer: The primary focus of data transfer (PDF or TXF) is typically for federal tax data. State tax information may not transfer as comprehensively and often requires manual re-entry or careful verification after the federal import.
How to: Handle tax loss carryovers when switching tax software?
Quick Answer: Tax loss carryovers (e.g., capital loss carryovers, net operating losses) are often not fully transferred via PDF import. You will likely need to manually enter these amounts into H&R Block based on your prior year's TurboTax return or relevant IRS forms (e.g., Schedule D for capital losses). Always verify these carefully.
How to: Verify that all my deductions and credits transferred correctly?
Quick Answer: The best way is a line-by-line comparison of your prior year's TurboTax PDF against the corresponding sections in your H&R Block return. Pay special attention to less common deductions, carryovers, and any complex calculations.
How to: Deal with discrepancies after importing data?
Quick Answer: If you find discrepancies, manually correct the information in H&R Block. Use your original source documents (W-2s, 1099s, etc.) and your TurboTax PDF as your authoritative guides.
How to: Know if the H&R Block online direct import is secure?
Quick Answer: H&R Block states their Direct Import feature uses authenticated data retrieval, implying secure protocols to access your TurboTax data. Always ensure you are on the official H&R Block website when providing any login credentials.
How to: Import my investment data (1099-B, etc.) from TurboTax to H&R Block?
Quick Answer: If you're using H&R Block desktop and exported a TXF file from TurboTax desktop, much of your investment data might transfer. For online users, the Direct Import feature aims to bring in many fields. Otherwise, you may need to import directly from your financial institution within H&R Block, or manually enter the details from your 1099 forms.
How to: Get a copy of my prior year's TurboTax return if I no longer have the software?
Quick Answer: You can log into your TurboTax online account for that tax year and download a PDF copy of your filed return. If you filed via mail, you can request a transcript from the IRS.
How to: Switch from TurboTax to H&R Block for free?
Quick Answer: While H&R Block offers free versions for simple returns, transferring data from TurboTax might require a paid H&R Block version (especially if you need comprehensive import features like TXF or the Direct Import for complex returns). The H&R Block "Direct Import" feature for online users is offered across all their DIY online tax filing options at no extra cost.
