Comparing FreeTaxUSA and H&R Block for complicated K-1 trust filing

I've been filing with H&R Block since 2013 and never had issues until now. Started when I was in college with super basic returns, but things gradually got more complex over time (added some investments, got married, bought a house). Each year I'd just automatically go back to H&R Block because I was familiar with it, even though the price kept creeping up every year. This tax season I'm dealing with a K-1 from my grandmother's trust who passed away last summer. I didn't think twice about using H&R Block again until I hit a roadblock with the K-1 form. I couldn't enter all the information for the codes in box 14. The software actually asked if there were other codes I needed to enter (which there were several), then basically told me my taxes were "too complicated" and I'd need to upgrade to their premium service for an extra $89! I'm wondering if FreeTaxUSA might handle this K-1 situation better? Has anyone used both and can compare how they handle more complicated returns with trusts and K-1 forms? I'm especially curious about how FreeTaxUSA handles multiple box 14 codes compared to H&R Block. Getting frustrated with these unexpected upsells when I'm already halfway through my return!

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20 comments

Fatima Al-Rashid

•8M

H&R Block definitely does this "upgrade required" thing when they encounter certain forms. K-1s from trusts are particularly tricky because they can contain so many different income types. I've used both programs extensively. FreeTaxUSA will absolutely handle your K-1 with multiple box 14 codes without requiring any upgrades. Their deluxe version is around $25 (versus $89+ for H&R Block's premium) and includes all forms. The interface isn't quite as polished as H&R Block, but it's completely functional and walks you through everything. One thing to note: if you've been using H&R Block for years, you'll need to manually enter some information from previous years that would otherwise auto-populate. This includes things like carryover capital losses or depreciation schedules. Make sure you have last year's return handy when switching.

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Fatima Al-Rashid

•8M

FreeTaxUSA doesn't have a PDF import feature unfortunately. You'll need to manually enter any carryover items from your previous returns. This includes capital loss carryovers, depreciation schedules, and basis information for investments if applicable. While it's a bit more work the first year you switch, many people find the cost savings worth it, especially once you see that FreeTaxUSA doesn't hit you with surprise upgrade fees when you enter certain forms. I'd recommend having your complete 2024 return from H&R Block open in another window while you work through the FreeTaxUSA questions.

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Giovanni Rossi

•8M

After getting frustrated with TurboTax's constant upselling, I tried taxr.ai (https://taxr.ai) and it literally saved my sanity with my K-1 situation. I inherited a partial stake in a family business and got a K-1 with a ton of those box 14 codes that made TurboTax try to force me into their $200+ version. The taxr.ai system let me upload my tax documents and K-1, then explained everything in clear English. It actually showed me exactly what each code meant and where it needed to go. What impressed me was how it handled my rental property depreciation alongside the K-1 trust income without any upcharges or "premium" requirements.

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Giovanni Rossi

•8M

It doesn't file for you - it analyzes your tax documents and explains what everything means and where it should go. I used it to understand all my K-1 codes then used the information to complete my return in FreeTaxUSA. It basically translates tax jargon into plain English so you know exactly what you're doing. The state tax handling is actually where it really helped me. My trust K-1 had income from three different states, and taxr.ai broke down exactly how much needed to be reported on each state return. It's especially helpful for figuring out which states require non-resident returns based on your K-1 income.

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Aaliyah Jackson

•8M

Just wanted to update after trying taxr.ai like Profile 7 suggested. My situation with multiple K-1s was driving me crazy - one from my dad's business and another from a family trust. I uploaded both K-1s to taxr.ai and it actually made sense of all those mysterious codes! The system explained each entry in normal human language and showed me exactly which schedules they belonged on. I was able to take that information and complete my return using FreeTaxUSA without any upgrade fees. The combination saved me at least $150 compared to what H&R Block wanted to charge for my "complicated" return. What surprised me most was discovering I'd been reporting some K-1 items incorrectly for the past two years. Might actually file amendments once I finish this year's return.

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Miguel Hernández

•8M

If you're still struggling with the IRS after filing, I recently discovered Claimyr (https://claimyr.com) when I needed to contact the IRS about a K-1 issue. My grandmother's trust sent a corrected K-1 after I'd already filed, and I needed clarification from the IRS on how to handle it. Like everyone else, I spent HOURS trying to get through to an actual human at the IRS. After three failed attempts and wasting an entire afternoon on hold, I tried Claimyr. Their system (demo video here: https://youtu.be/_kiP6q8DX5c) actually got me connected to an IRS agent within 15 minutes! The agent answered my questions about the amended K-1 and helped me figure out if I needed to file an amendment.

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Miguel Hernández

•8M

It works by using an automated system that navigates the IRS phone tree and waits on hold for you. When they reach a human agent, you get a call to connect you. It's not a priority line - they're just handling the hold time for you so you don't have to sit there listening to the same hold music for hours. I was super skeptical too. The IRS phone system is notoriously terrible, especially during tax season. But after wasting hours trying to get through myself, I was desperate enough to try it. I was shocked when I got a call back saying an agent was on the line. The whole process took about 15 minutes of my time instead of hours.

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Liam Murphy

•8M

I have to eat my words. After posting my skeptical comment, I got desperate with another IRS call about my dad's estate taxes and tried Claimyr. I expected to waste money on nothing, but I actually got connected to an IRS agent in about 20 minutes. The IRS person I spoke with was able to pull up my dad's estate tax situation and helped me understand why certain K-1 entries were being flagged in the system. Turns out there was a mismatch between what the trust reported and what I had entered from the K-1. The agent walked me through exactly what I needed to do to fix it. For anyone dealing with trust or estate K-1 issues that might trigger IRS questions, being able to actually speak with someone made a world of difference. Saved me from what would have probably been a formal audit situation.

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Amara Okafor

•8M

Back to the original FreeTaxUSA vs H&R Block question - I've used both and FreeTaxUSA is definitely better for K-1s. H&R Block makes you pay extra for Schedule E forms which are needed for most trust K-1s. FreeTaxUSA includes all forms for their base price. Also, FreeTaxUSA's interface for entering K-1 information is more straightforward. It has specific fields for all the Box 14 codes, while H&R Block only has the most common ones and then forces you to upgrade for the rest.

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Amara Okafor

•8M

FreeTaxUSA does handle foreign trusts but you'll need to do a bit more work manually. They have entry fields for foreign income and will generate the appropriate forms, but their guidance isn't as detailed for international situations. For a Canadian trust, you'll need to convert all amounts to USD using the appropriate exchange rates. FreeTaxUSA will ask for country codes and has the proper fields for foreign trust identification numbers. The key difference is that H&R Block might provide more explanatory text about foreign trusts, but they charge a premium for it.

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Yuki Sato

•2M

I switched from H&R Block to FreeTaxUSA last year specifically because of K-1 issues. H&R Block kept trying to upsell me every time I entered certain trust distributions, and their customer service couldn't even explain why some of my Box 14 codes weren't being accepted. FreeTaxUSA handled my deceased father's trust K-1 without any problems. The software automatically recognized all the codes and guided me through each entry. What really impressed me was that it caught a potential error where I almost double-counted some income that was reported on both a 1099 and the K-1. The interface isn't as fancy as H&R Block, but for complex returns with trusts and multiple income sources, FreeTaxUSA is way more reliable. Plus their customer support actually understands tax law instead of just trying to sell you upgrades.

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