Kyle Psaty

H&R Block Tax Software Glitch Could Cost New Englanders

H&R Block Screen ShotIt’s Tax Day here in America …but not for many Massachusetts and Rhode Island residents.

Residents of counties that were declared federal disaster areas after last month’s heavy rains and flooding have until May 10 to file their state and federal income taxes.

But someone should tell H&R Block — and in all likelihood, they’re not alone — about the extension, because the professional tax preparer’s online free version does not reflect that deadline change.

In an effort to confirm a tip about a glitch in H&R Block’s software, I prepared my taxes last night using the company’s “At Home Free Edition.” Here’s what I found:

Although I had to submit my zip code and city of residence to file my state and federal income taxes, H&R Block ushered me through the process — which I must say was pretty easy — and led me to this page (below). The software had no idea that, as a resident of Suffolk County, I am eligible for the extension.

No big deal, right?

H&R Block Error - May 10, not April 15!

H&R Block screen shot showing the glitch: "You have 2 days left to file."

Wrong, according to BostInnovation reader and local entrepreneur Michael D. Andelman, who also prepares taxes professionally during this time of year.

“The H&R Block system is currently inaccurate in saying when people need to file their taxes,” said Andelman last night. “Let’s just say that someone doing their taxes today doesn’t want their taxes to be filed until May so they can save up for those extra weeks. Currently, H&R Block’s online system only goes to April 15. If I’m filing using H&R Block’s online software, I have to send that money in by April 15 if it’s going to be done electronically.”

While this might not sound like much of an issue, there are many New England residents who owe money to the government that they cannot pay in a lump sum. So, they’re opting into payment plans — unaware that they don’t have to file until May 10.

And they’re paying interest and fees on those plans.

H&R Block response

I let them know about the error on the "feedback" page

“[H&R Block has] given at least one individual a full monetary refund (for H&R Block charges incurred) because of this problem, but it’s mostly about the fact that these people are paying money to the government that they don’t have to,” said Andelman.

Some readers may be sighing right now, realizing that their taxes do not have to be completed today. But others who already filed might want to call their tax preparers to find out if their payment plans were necessary.

What do you expect from a free online tax preparation service? Shouldn’t it tell you about things like deadline extensions? Have you noticed this kind of glitch with any other free tax preparation services? Did you even know there was an extension? Let us know in the comments section.

Editor’s Note: For disclosure, we should mention that Michael D. Andelman used to work for H&R Block, but he said he enjoyed working there and, “loved the company. They treated me very well.” Since BostInnovation was able to verify this glitch, we feel justified in including his quotes.

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