Turbo Tax says one thing, while H&R Block says another. Who am I to trust with my taxes?

I get a high refund with Turbo tax and owe nothing, but with H&R Block, I get the same refund, but I owe $57 in state taxes. I entered the same information with both. Why am I getting a debt in one, and not getting it in the other? Is there any difference between the two? Which one is more reliable?

PS I'm a student, so I should get a refund, not a debt.

Well, you've learned not to go to block. However, you may be in a simple situation. So their software here would be the same as turbotax. You still don't want to order their software because they splatter your social security number on it and stick it in the mail. Anyone, a dishonest postal employee, someone who looks in mailboxes, if the mail gets lost or mislaid - can get your social and drain your bank account, use your credit card to buy thousands of dollars worth of stuff, etc.

It's possible that block mailed you software that had the wrong State. Turbotax used to have every State that has income tax {42 and D.C. do}, so I could not see them discontinuing that feature. It would be poor marketing strategy. More:

One thing to watch out for: refund anticipation loans {RALs}: Don't do it. What they do is USURY and should be illegal. And don't go to Block.
Block has to change their advertising. Firstly, the firm is not to print the SS# of the client on any of the Tax software they send.
Secondly, they are not to advertise "refund anticipation loans". Not only were they never necessary, they are not ethical, the interest rate annualized - especially when you add the fees and figure them in - is outrageous. In addition, it is unwise to do what boiler room unscrupulous preparers do. While their motivation violates IRS ethics, block should not want to be associated with such shenanigans. In the case of refund anticipation loans, the motivation is NOT to help the client. The client is seldom informed that he/she may be turned down for the loan due to a government agency seizure or the IRS wanting to examine the return. That means you pay the ERO and bank fees in vain.
A CPA named Kaye Thomas who spends his time doing taxes and writing books on income taxes exclusively {a CPA is no good unless he/she does income taxes
exclusively. That's the only way you can keep up} had a good article on the usury of RAL's. The site has been revamped and the article is gone and I emailed asking the firm to get the article back up. Unless you are in a complicated tax situation, you do not need expensive software. I found this out the hard way:

Wow! Learning more about H&R ripoff: "If you got an emerald advance line done from them in December probably yes {you're trapped in to returning to that outfit}. If you can, do not go to H&R Block this year. My sister got an advance done in December and she paid through the teeth this tax season. She paid almost double what she did in 2006. Also, they are not issuing checks anymore, either. They are giving the early anticipation loans now on a debit card. My advice for you is to go to a local private tax preparer who will probably do the return for under $100. They can e-file the tax return and you won't have to pay the outrageous fees. So if you did have
H&R Block do an advance in December you'll have to have them finish the other part of the return for 2007. If you didn't then you won't have to return there."

State taxes can be tricky. If you worked this past year and you claimed enough deductions on your W2 paperwork when hired, it is possible your employer did not with hold any or enough state tax. Many counties have tax on top of state tax, and that is often where the differences lay. I would go with H&R. Pay the $57. It is always better to overpay and get it back at a later date than to with hold the payment and find out it was in fact correct and get hit with late fees and penalties. Those can add up quickly and your $57 can quickly become a couple hundred!

Just because you're a student does NOT mean you should get a refund. It's important that you understand exactly how this works.

If you work, and you get a paycheck, you're required to pay taxes. The US Government, in an effort to make sure everyone pays their fair share, requires your employer to withhold part of your paycheck and send it to them (the government) each time you get paid.

Your employer strives to withhold only the amount necessary to pay your taxes. You help your employer estimate this amount by filling out your W-4 form. Then, based on the information you supplied on your form W-4, your employer has a formula to calculate how much gets withheld.

However, this is only an estimate. You won't know until you actually prepare your income tax return. If your employer withheld too much, you'll get some money back. If your employer didn't withhold enough, you'll owe. It has absolutely nothing to do with whether or not you're a student.

I'm guessing that in TurboTax, you didn't tell TurboTax that someone else can claim you as a dependent. When someone else can claim you as a dependent, you lose the exemption for yourself, and that may be why there's a difference between TurboTax and Block.

I don't have enough information to definitively say that's the issue, but that'd be the first place I'd look for a discrepancy if I were in your shoes.

Being a student does NOT guarantee you a refund. In fact, students are MORE likely to owe at tax time since they can usually be claimed as dependents by their parents so they pay HIGHER taxes.

If you get 2 different answers from 2 different tax prep programs you HAVE messed something up on one or even both of them. Go back and check your work. You fat-fingered something somewhere or answered a question incorrectly in the interview section. While it's possible to get different answers with a highly complex return, a simple return based on wages only will be the same no matter where you do it.

FYI, NO tax preparer or tax software can guarantee a refund! Such claims are ILLEGAL

for state taxes, there is usually no guaranteed refund - you should break even on state taxes, unless you have interest or dividend income or something else that did not have taxes withheld

I am interested to know more. Both are reputed software and are regarded as leaders in retail software business. Can you posts your total income from all w2 and 1099, taxes withheld from all w2, 1099 and which state. I may be able to guestimate your tax profile.

There are different versions of TurboTax, are you sure your version even includes the state taxes?

best thing to do is to call the IRS 1-800-829-1040

their advice is free and true.

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