Tax Software

TurboTax vs H&R Block: Which Tax Software Is Better for Small Business Owners in 2026?

QUICK ANSWER

TurboTax is better for self-employed individuals and small business owners who want the most guided tax experience with the most comprehensive Schedule C, Schedule E, and business deduction support. H&R Block is better for business owners who want the option to meet with a human tax professional in person at an H&R Block office, or who want a slightly lower price point for similar business tax capabilities. Both handle Schedule C, home office deductions, and self-employment tax accurately.

Key Takeaways

  • TurboTax Self-Employed costs more but offers the most thorough deduction finder — TurboTax’s industry-specific deduction guidance covers 350+ deductions by occupation type; the incremental deductions found often more than offset the higher software cost.
  • H&R Block offers in-person office support that TurboTax doesn’t match — with 10,000+ locations, H&R Block lets you start your return online and finish with a tax professional in person; TurboTax’s expert help is virtual-only.
  • Both import QuickBooks and accounting software data directly — TurboTax and H&R Block import income and expense data from QuickBooks Online, reducing manual data entry for business owners with organized books.
  • S-Corp and partnership returns (1120-S, 1065) require higher-tier products — if your business files a separate entity return rather than Schedule C, both TurboTax and H&R Block offer business-entity versions at significantly higher prices ($170–$200+).

For small business owners filing Schedule C (sole proprietors, single-member LLCs, and independent contractors), the choice between TurboTax and H&R Block comes down to guidance quality, pricing, and support options. This comparison covers both for the Schedule C use case — the most common scenario for small business owners.

TurboTax vs H&R Block: Pricing Comparison

TurboTax Self-Employed is priced at approximately $130 for federal filing plus $60 per state return. TurboTax Live Self-Employed (with CPA review and unlimited expert access) runs approximately $220 for federal plus $70 per state. Prices vary by promotion period — TurboTax typically offers significant discounts early in tax season that increase as April 15 approaches.

H&R Block Self-Employed is priced at approximately $85 for federal plus $37 per state for the online version. H&R Block’s Tax Pro Review (expert review of your completed return) adds $70–$90 to the base price. For business owners who want human expert review at a lower cost than TurboTax Live, H&R Block’s pricing is meaningfully more competitive.

Business Deduction Coverage

TurboTax Self-Employed’s deduction finder is industry-specific — it asks your occupation and suggests common deductions for that business type, including less-obvious deductions that many business owners overlook (professional development, home office furniture depreciation, business-use percentage of phone and internet). The guidance is comprehensive enough that many self-employed users find TurboTax identifies deductions their accountants hadn’t surfaced.

H&R Block’s deduction coverage is solid but less exhaustive in its business-specific guidance. H&R Block asks thorough questions about Schedule C income and expenses, handles home office (both actual expenses and simplified method), vehicle deductions (actual vs. standard mileage), and health insurance deductions accurately. The gap between TurboTax and H&R Block is most significant for complex business situations — multiple income streams, significant asset depreciation, home office with a dedicated room — rather than simple sole proprietorships.

Accounting Software Import

Both TurboTax and H&R Block import data from QuickBooks Online, QuickBooks Self-Employed, and QuickBooks Desktop. TurboTax additionally integrates with FreshBooks and Square. H&R Block imports from QuickBooks and offers CSV import for businesses using other accounting platforms. For business owners with well-maintained books in QuickBooks Online, the import feature in both products significantly reduces manual data entry and minimizes transcription errors.

TurboTax vs H&R Block: Summary

FeatureTurboTax Self-EmployedH&R Block Self-Employed
Federal price~$130~$85
State price~$60/state~$37/state
Deduction finderIndustry-specific, most comprehensiveSolid, less occupation-specific
In-person supportNo (virtual only)Yes (10,000+ offices)
QuickBooks importYesYes
Audit defenseAvailable add-onAvailable add-on

Recommended Resources

TurboTax Home & Business 2025 — the desktop version of TurboTax for self-employed individuals and sole proprietors, offering the full TurboTax experience with Schedule C, home office, and business deduction support in a downloadable format you install on your computer.

QuickBooks Online for Beginners 2026 — having well-organized books in QuickBooks Online before tax season dramatically simplifies the tax preparation process; this guide covers how to categorize transactions, run tax-ready reports, and use the QuickBooks import feature in TurboTax or H&R Block.

Frequently Asked Questions

Should I use TurboTax or an accountant for my small business taxes?

For straightforward sole proprietorships and single-member LLCs with simple income streams (under $200K revenue, no employees, no significant asset depreciation), TurboTax Self-Employed is a capable option that costs significantly less than a CPA. For more complex situations — S-Corps, partnerships, multiple business entities, significant real estate holdings, international income — a CPA typically delivers more value than their cost through tax planning, structure optimization, and catching issues that tax software misses. The decision point is usually $200K–$500K in business revenue, where the complexity of the tax situation begins to exceed what software guidance handles well.

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