TurboTax vs H&R Block Calculators for Self-Employed with Dependents - Accuracy Comparison

Tax calculators are like weather forecasts - they give you a general idea but can't predict everything perfectly! In my experience, the difference is usually in how they ask questions about your self-employment expenses. TurboTax tends to break things down like a recipe with lots of tiny ingredients, while H&R Block is more like a buffet where you put things in broader categories. Neither is wrong, just different approaches to the same meal!

I would suggest trying a third calculator just to be safe. Sometimes the way questions are phrased can lead to different inputs even when you think you're entering the same information. I've been in your situation... it's stressful when different tools give different answers, especially when you're self-employed and every dollar counts.

Tbh both calculators should be pretty close for basic SE scenarios. The diff is prob in how they handle biz deductions or CTC calcs. If you're really stuck and need accurate answers, might wanna talk to an actual IRS agent. I used Claimyr (https://youtu.be/_kiP6q8DX5c) last month when I had questions about my SE taxes. Got thru to an agent in like 20 mins instead of waiting for hours. They explained exactly how the SE tax works w/ dependents.

According to IRS Publication 505, self-employed individuals with your income level ($19,200) should expect to pay approximately $2,713 in self-employment tax for 2024. Both calculators should arrive at this figure. For the Child Tax Credit, with 3 qualifying dependents under IRC §24, you should be eligible for up to $6,000 ($2,000 per child), though this begins to phase out at higher income levels. The discrepancy is likely in how business expenses are being calculated or entered.

Try the IRS's own calculator. It's basic. But accurate. No marketing gimmicks. Pure tax math. I use it as a baseline. Then compare with commercial options. You'll see where differences come from. Self-employment tax is straightforward math. The CTC calculations too. Differences usually come from deductions. Check your expense entries carefully.

I performed a comparative analysis between these platforms using identical parameters to yours. The variance in calculated liability is typically attributable to the Qualified Business Income deduction implementation. TurboTax employs a more aggressive algorithm for identifying potential Schedule C deductions, while H&R Block utilizes a more conservative depreciation calculation methodology. This creates a mean variance of approximately 3-7% in total tax liability projections for sole proprietors in your income bracket.

Have you tried just using the free fillable forms directly from the IRS? I spent hours comparing different calculators last year only to find they were all slightly off. When I just filled out the actual forms myself, I understood exactly where every number came from. Takes more time but gave me peace of mind that I wasn't missing anything the calculators might overlook.