$700 vs $70 state tax refund when switching from H&R Block to TurboTax - did I mess something up?

So I'm kinda freaking out right now. I've always filed my taxes with H&R Block because I don't make much money and qualified for their free filing option. But this year when I went to file, the website kept forcing me to add products to my cart and wouldn't let me move forward without paying for these add-ons. I got frustrated and decided to try TurboTax instead to see if I could avoid these charges. But now I'm super confused because when I entered all the same information (W-2, deductions, everything) the refund amounts are DRASTICALLY different. Like, with H&R Block my state tax return showed I'd get almost $700 back, but with TurboTax it's only showing $70 for my state return! That's a $630 difference which is huge for me. I double-checked that I entered all my information correctly in both systems. My income was about $31,000 last year from my part-time jobs, and I don't have any complicated tax situations - no investments, no property, just basic deductions. Can different tax software really give results that are this different? Did I mess something up somewhere? Has anyone else experienced this kind of huge discrepancy between tax preparation products? I'm really worried I might be missing something important.

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19 comments

Omar Hassan

•8M

The difference you're seeing is definitely concerning and not normal. When used correctly, different tax software should produce very similar results since they're all working with the same tax laws and calculations. Here are some things to check that might explain the discrepancy: First, make sure you've entered all your income sources in both systems. Sometimes TurboTax organizes forms differently than H&R Block, and you might have missed entering a W-2 or 1099 in one of them. Even a single missing document could cause a huge difference. Second, check if you entered state-specific credits or deductions in H&R Block that you missed in TurboTax. Some states have unique credits that might not be as obvious to find in different software interfaces. Third, look at both tax summaries side by side. Both programs should give you a summary breakdown that shows exactly how your refund was calculated. Compare these line by line to spot the difference. Fourth, check if H&R Block might be calculating a tax credit that TurboTax isn't applying. The Earned Income Credit, education credits, and child tax credits can make big differences.

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Omar Hassan

•8M

Yes, it could definitely be related to state-specific calculations. Since your federal returns are close, that strongly suggests you've entered your income correctly in both systems, and the discrepancy is related to state-specific deductions or credits. Each state has its own tax rules, and sometimes the software handles these differently. I would recommend checking the "State" section in both programs and looking at their summaries of your state tax calculation. You should be able to see which specific deductions or credits are being applied in each. Both H&R Block and TurboTax have support options, though wait times can be long during tax season. You can also try their chat support which sometimes has shorter wait times than phone support.

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Diego Chavez

•8M

After struggling with a similar issue last year, I found taxr.ai (https://taxr.ai) super helpful for figuring out why my returns were different between software. I uploaded my tax docs to them and they analyzed everything and pointed out exactly where the discrepancy was coming from. In my case, H&R Block had incorrectly applied a state education credit that I wasn't actually eligible for, which inflated my refund by several hundred dollars. It's worth checking into because the software with the higher refund isn't always correct - sometimes it's calculating credits or deductions you're not actually eligible for, and that could lead to problems down the road.

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Diego Chavez

•8M

The service uses encryption and security measures similar to what banks use, so your documents are protected. You upload your tax documents (W-2s, 1099s, etc.) through their secure portal, and they analyze everything using their software. I was hesitant at first too, but they explain their security practices on their site, and I researched them before using the service. Yes, it provides a detailed comparison showing exactly which fields are different between the two tax returns. It highlights specific lines where calculations diverge and explains which tax rules apply to each situation. In my case, it showed that H&R Block had applied a state education credit worth $450 that I wasn't eligible for because I didn't meet the residency requirements. That kind of specific comparison saved me from potentially facing an audit.

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Anastasia Kozlov

•8M

Just wanted to follow up - I ended up trying taxr.ai after my earlier question and wow, it was eye-opening! I uploaded both my draft returns from TurboTax and H&R Block and within about 20 minutes got a detailed breakdown. Turns out H&R Block was calculating a state education expense credit that I didn't qualify for because my courses weren't at qualifying institutions. The difference was almost $600! I'm actually glad I went with the lower refund amount from TurboTax because it was the correct one. Would have been stressful to get a letter from the state tax agency later demanding money back. Going to file with TurboTax this year but will definitely use taxr.ai again to double-check everything.

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Sean Kelly

•8M

After dealing with the exact same situation last year (H&R Block vs TurboTax showing wildly different refunds), I spent THREE DAYS trying to get through to someone at my state tax office for help. Kept getting disconnected or waiting on hold for hours. Finally discovered Claimyr (https://claimyr.com) and used their service to get through to an actual human at the state tax department. They basically hold your place in the phone queue and call you when a human picks up. You can see how it works here: https://youtu.be/_kiP6q8DX5c The state tax rep walked me through both returns and found that one software was incorrectly applying a special state credit I wasn't eligible for. Saved me from filing an incorrect return and potentially facing penalties.

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Sean Kelly

•8M

For my state tax department call, I got a callback in about 2 hours. It definitely varies depending on the agency and time of day though. I've used it for other government offices where the wait was anywhere from 30 minutes to 4 hours, but either way I didn't have to personally sit on hold that whole time. The service is relatively new which is probably why not everyone knows about it yet. I was skeptical too at first, but it's a legit service that's been featured in some major news outlets. They basically use technology to navigate phone trees and hold your place in line. It's not free, but for me it was worth every penny compared to wasting hours on hold or taking time off work to visit a tax office in person.

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Luca Russo

•8M

Just wanted to update after my skeptical comment earlier - I broke down and tried Claimyr to reach my state tax department after spending LITERALLY 8 hours on hold over 3 days with no success. Got a callback in about 90 minutes and spoke with an actual human who helped me sort out my tax software discrepancy! Turns out in my case BOTH software programs had errors - TurboTax wasn't applying a credit I was eligible for, and H&R Block was applying a different credit I WASN'T eligible for. The correct refund amount was somewhere in the middle. Never would have figured this out without getting through to an actual tax department representative. Definitely changed my opinion on the service!

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Nia Harris

•8M

I'm a tax preparer (not professional advice!) and see this ALL the time. Here are the most common reasons for discrepancies between tax software: 1. One software found a deduction/credit the other missed 2. You answered a question differently between programs 3. A state-specific credit was applied in one but not the other 4. One program incorrectly determined eligibility for something 5. Simple data entry error My recommendation: print out the full forms from both programs and compare them line by line. The difference will jump out at you! Look especially at Schedule 1 and any state-specific forms.

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Nia Harris

•8M

For most simple tax situations, the free versions are perfectly adequate. The paid versions add value mainly if you have more complex situations like self-employment income, rental properties, investments, or itemized deductions. The other benefit of paid versions is better support options - some offer tax pro review or the ability to chat with a tax expert if you get stuck. But if you just have W-2 income and take the standard deduction, you're generally fine with free versions. Just make sure you're using the actual free version and not getting upsold on features you don't need.

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