Private | |
Industry | Grocery retail |
---|---|
Founded | November 26, 1905 (113 years ago) as C.C. Butt Grocery Store in Kerrville, Texas, United States |
Founder | Florence Butt |
Headquarters | San Antonio, Texas, U.S. |
Number of locations | 340 (2018) |
Texas, Nuevo León, Tamaulipas, Coahuila, San Luis Potosí, Guanajuato, Aguascalientes & Querétaro. | |
Key people | Charles Butt(Chairman & CEO) Scott McClelland,[1]President Martin Otto, COO |
Products | Bakery, dairy, deli, frozen foods, gasoline, general grocery, meat, pharmacy, produce, seafood, snacks |
Services | Auto health, fuel, ticket sales, utilities, and licenses |
Revenue | $21 billion+ (2018) |
100,000 (2018) | |
Subsidiaries | Central Market Favor Delivery H-E-B Mexico |
Website | heb.com |
We chose H&R Block as the best business tax software alternative to TurboTax because it includes many of the features that TurboTax has at a lower cost. In addition, it’s great for nonprofit organizations because you can file your nonprofit tax return with the Premium & Business version of H&R Block.
We chose H&R Block as the best business tax software alternative to TurboTax because it includes many of the features that TurboTax has at a lower cost. In addition, it’s great for nonprofit organizations because you can file your nonprofit tax return with the Premium & Business version of H&R Block. Medical Definition of H and H H and H: H and H, sometimes written as 'H&H', is a popular shorthand for hemoglobin and hematocrit, two very common and important blood tests. Hemoglobin is the oxygen-carrying protein pigment in the blood, specifically in the red blood cells.
H-E-B headquarters
H-E-B is an American privately heldsupermarket chain based in San Antonio, Texas, with more than 350 stores throughout the U.S. state of Texas, as well as in northeast Mexico.[2][3] The company also operates Central Market, an upscale organic and fine foods retailer.[4] As of 2017, the company has a total revenue surpassing US$25 billion.[5] H-E-B ranked No. 15 on Forbes' 2014 list of 'America's Largest Private Companies'.[6] H-E-B was named Retailer of the Year in 2010 by Progressive Grocer.[7]Supermarket News ranked H-E-B No. 13 in the 2008 'Top 75 North American Food Retailers'.[8] Based on 2014 revenues, H-E-B is the twentieth largest retailer in the United States.[9] It donates five percent of pre-tax profits to charity.[10]
- 2Operations
History[edit]
The company was founded on November 26, 1905, when Florence Butt opened the C.C. Butt Grocery Store on the ground floor of her family home in Kerrville, Texas.[11] In 1919, Howard Edward Butt, Florence's youngest son, took over the store upon his return from World War I. Shortly after becoming owner of his mother's small store, Howard tried four expansions into Central Texas, including one in Junction, all of which failed. Finally, in 1927, Howard launched a successful second store in Del Rio, Texas, followed by the purchase of three grocery stores in the Lower Rio Grande Valley. The first initials of Howard E. Butt became the name of the store.[12]
Charles, the younger son of Howard E. Butt, became president of H-E-B in 1971. As of 2016, Charles Butt is chairman and CEO of H-E-B, having grown the business from annual sales of $250 million in 1971 to $13 billion in 2006. In 2010, Craig Boyan was named H-E-B's President and COO.[13] However, as of 2018, Martin Otto, the former CFO and Chief Merchant, has become the COO.[14] In 2011, the company was #12[15] on Forbes's list of largest privately held companies; H-E-B was, for many years, until Dell went private in 2013, the largest privately held company in Texas.[16]H-E-B acquired Favor Delivery as a wholly owned subsidiary in February 2018. The details of the merger were not disclosed.[17]
In the light of increased self-checkout usage via kiosk or smartphone app in 2019, H-E-B is gradually shifting towards creating more self-checkout smartphone apps and lanes than cashier lanes. The company has been investing millions of dollars, in replacing many cashier stations with self-checkout kiosks or apps by 2023. As many other supermarkets (such as Walmart, Target, etc) are also shifting towards more self-checkout lane and app usage, and displacing cashiers in the near future.[18]
Operations[edit]
Houston's Buffalo Market H-E-B (#51)
Headquartered in Downtown San Antonio, H-E-B Headquarters 646 S Flores St, San Antonio, TX 78204, H-E-B operates more than 300 stores in over 150 communities across Texas.[19][20] As of late 2010, its operations serve approximately '55-plus' percent of the Texas market, according to Progressive Grocer,[21][22] with primary Texas markets including the Corpus Christi, San Antonio, Austin, Laredo and Houston metro areas. The company does business in five different retail formats: general H-E-B stores, Central Market, H-E-B Plus, Mi Tienda and Joe V's Smart Shop. In 2010, the company announced plans to build 19 new stores in Texas.[23] H-E-B opened its first store outside of Texas in 1996, a 24,000-square-foot (2,200 m2) H-E-B Pantry store in Lake Charles, Louisiana; though the expansion was, in comparison, short-lived and ultimately failed to catch on, either with planners or with the community. The H-E-B Pantry store format was discontinued in 2000,[24] and the company closed its sole Louisiana store in 2003. In 2010, H-E-B offered consumers the opportunity to vote on possible designs for new stores as they expand into new communities.[25]
The company operates several manufacturing facilities in Texas, including one of the largest milk- and bread-processing plants in the Southwest.[26] H-E-B produces many of their own-brand products, including milk, ice cream, bread, snacks, and ready-cooked meats and meals. These and other private-label products are sold under various brands, including 'Central Market Naturals', 'Central Market Organics','H-E-B', 'H-E-Buddy', 'Hill Country Fare', 'H-E-B Creamy Creations' ice cream, 'H-E-B Mootopia' milk, and 'H-E-B Fully Cooked.'
Several stores include multi-tenant operations through third-party lease arrangements. Many stores include a bank operation and cellular kiosk. Common nationally recognized tenants include Sprint-Nextel, IBC Bank, Enterprise Rent-A-Car,[27]Panda Express, Chase Bank, Flexi-Compras, Auntie Anne's Pretzel, AT&T, Gold & Silver Buyers, Wells Fargo, and Maui Wowi.[28][29][30]
The H-E-B corporate offices have more authority over decision-making at individual H-E-B outlets in San Antonio than Foodarama does over individual La Fiesta chains in San Antonio. Because H-E-B is a regional chain, Elizabeth Allen of the San Antonio Express-News said that it is more 'nimble' than national grocery companies such as Albertsons.[31]
The Austin Business Journal rated H-E-B as the largest private-sector employer in the region in 2017.[32]
Central Market[edit]
Business Tax Software
Central Market store in central Austin
In 1994, H-E-B introduced its Central Market concept in Austin. Based in Austin, Central Market offers an organic and international food selection, including a European-style bakery and extensive wine and beer selections. The chain is now composed of eight stores, two in Austin and one each in Dallas, Fort Worth, Houston, Plano, San Antonio, and Southlake.[33] H-E-B operates four different formats of stores that introduce general merchandise and elements of the Central Market concept: The Woodlands Market in The Woodlands in Montgomery County, Kingwood Market in the Kingwood section of Houston, and the Austin-Escarpment store in south Austin. A fourth store opened on March 22, 2008 in West Lake Hills, and in 2009, the H-E-B in Bee Caves was remodeled. H-E-B's Alon Market opened on October 17, 2008 in San Antonio.[34] In October 2007, H-E-B opened its Cypress Market store, located at the intersection of Highway 290 and Barker-Cypress. In November 2007, the 112,000 sq ft (10,400 m2) Vintage Market store opened in northwest Harris County in greater Houston.[35] In November 2012, H-E-B opened its second Cypress store, Fairfield Market, located at the intersection of Highway 290 and Mason Road to serve the master-planned community of Fairfield and surrounding areas.[36]
In July 2015, the Market concept was expanded as a new Spring Creek Market was opened in southern Montgomery County in Spring, Texas on Rayford Road adjacent to the new Texas State Highway 99 to serve the expanding suburb of Houston.[37]
H-E-B Plus![edit]
H-E-B Plus store in Laredo, Texas
In 2004, the company launched three (in Austin, Corpus Christi, and Waco) H-E-B Plus! stores with an expanded focus on non-food categories, such as entertainment and other general merchandise. The company added three additional locations in 2005 (Corpus Christi, Round Rock and San Antonio). The stores offered several new departments including Do-It-Yourself and Texas Backyard, and greatly expanded product categories in baby, card and party, cosmetics, entertainment, housewares and toys.
Several other locations were later added, including stores in Flour Bluff, Corpus Christi, Bastrop, Beaumont, Belton, Boerne, Katy, Killeen, Cypress, Victoria, Kyle,[38]Laredo, Leander,[39]Mission, Rio Grande City, San Juan, San Antonio,[27]Midland, Pearland,[40][41][42]Copperas Cove[43]and Hutto.
Mi Tienda[edit]
Mi Tienda in northern Houston
In 2006, H-E-B opened Mi Tienda in South Houston (adjacent to Pasadena) in Greater Houston - a 63,000-square-foot (5,900 m2) Latino-themed store.[44][45] Another Mi Tienda opened in north Houston in 2011; it is twice the size of the original location,[46] and has 97,000 square feet (9,000 m2) of space.[47] This second location is off of Little York and U.S. Route 59. Mi Tienda, which means 'my store' in Spanish, sells Mexican baked goods; a tortilleria, where employees make tortillas; and a carniceria providing marinated cuts of chicken, beef and pork. In addition, Mi Tienda also houses the Cocina restaurant, which serves Mexican food and drinks.[citation needed]
Joe V's Smart Shop[edit]
Joe V's Smart Shop in unincorporated northeast Harris County, Texas
In 2010, H-E-B opened Joe V's Smart Shop, a brand featuring discount items modeled after discount grocer Aldi.[48] The first location opened was a 54,690-square-foot (5,100 m2) store located in northwest unincorporatedHarris County, Texas,[49] near northwest Houston. The store format is smaller compared with a full-service H-E-B store but double the size of an H-E-B Pantry store. A larger, second location with a 65,714-square-foot (6,100 m2) space opened in December in northeast unincorporatedHarris County, Texas. As of 2016, there are seven Joe V's stores.[50] The 'Joe V' name was based on the name of an executive of the company who was involved in the development of this store format.[51]
True Texas BBQ[edit]
True Texas BBQ is located inside select H‑E‑B stores. Open daily from 11:00 a.m. until SOLD OUT featuring a self-service restaurant concept with indoor seating providing ample dining options as well as take-out service in addition to catering. The comment 'Texas largest BBQ chain' is visibly displayed on employees attire. Note: (see external links below)
Mexico[edit]
Store in Piedras Negras
H-E-B crossed the $1 billion mark annual sales mark in Mexico in 2012.[52]
Litigation[edit]
In the mid-1980s, local grocery chains Handy Andy and Centeno joined a lawsuit against H-E-B citing unfair pricing practices.[53] H-E-B eventually settled the suit out of court with Centeno in 1998 for $6.5 million and with Handy Andy for an undisclosed settlement amount.[54][55]
H-E-B has paid $12 million to settle a whistleblower lawsuit accusing the San Antonio-based grocery chain of Medicaid fraud. Since at least 2006, according to the suit, H-E-B allegedly submitted to Texas Medicaid inflated prices on thousands of claims for prescriptions it filled so the company could obtain higher reimbursements than allowed.[56]
Small Business Tax Program
Charitable activity[edit]
The company gives five percent of annual pretax earnings to causes in the areas in which it operates, including education and food banks.[57] The Excellence in Education Awards are an annual charitable program maintained by H-E-B since 2000, in which teachers, administrators and schools in Texas are recognized, with awards totaling $500,000 in contributions in 2009.[58]
H-E-B coordinated donations to relief efforts in the wake of a fertilizer plant fire and explosion in West, Texas. The company donated $50,000 to the American Red Cross and launched a checkstand campaign benefiting the organization to get the community involved in the relief effort. The company said in a news release 100 percent of the donations from the campaign will support the American Red Cross’s disaster relief efforts. H-E-B also activated its emergency response units, sending the H-E-B Eddie Garcia Mobile Kitchen and water tanker to West, including donations of meals and water to the victims and first responders.[59]
In the aftermath of Hurricane Harvey in 2017, H-E-B donated $100,000 toward its relief efforts. Its campaign drive for customer contributions totaled $1,000,000.[60] In addition, H-E-B's Mobile Kitchen and Disaster Relief Units distributed 10,000 hot meals to volunteers and victims in the affected areas in Texas.[60][61]
Gallery[edit]
- H-E-Buddy, the company mascot, at the Texas Book Festival
References[edit]
Does Nevada Have A Business Tax
- ^Hendricks, David (23 January 2010). 'New president is named at H-E-B'. San Antonio Express News. Archived from the original on 2010-02-25. Retrieved 12 November 2010.Cite uses deprecated parameter
|dead-url=
(help) - ^'Supermarket News Company Profile: HEB Grocery Company'. Supermarket News. Archived from the original on 2009-11-08. Retrieved 2008-06-18.Cite uses deprecated parameter
|dead-url=
(help) - ^'HEB TV Spots Reinforce Commitment to Helping Shoppers Save'. Progressive Grocer. Stagnito Media. 2010-02-07. Archived from the original on 2011-07-15. Retrieved 2010-04-14.Cite uses deprecated parameter
|dead-url=
(help) - ^'Forbes 400: Charles Butt'. Forbes Magazine.
- ^'HE Butt Grocery on the Forbes America's Largest Private Companies List'. Forbes.
- ^'America's Largest Private Companies'. Forbes. Retrieved 10 November 2014.
- ^Vaughan, Vicki (2010-10-06). 'H-E-B is Retailer of the Year'. San Antonio Express-News. Hearst Newspapers. Retrieved 2010-11-02.
- ^2007 Top 75 North American Food RetailersArchived May 11, 2016, at the Wayback Machine, Supermarket News, Last accessed February 24, 2007.
- ^Top 100 Retailers Chart 2015Archived June 10, 2016, at the Wayback Machine National Retail Federation.
- ^'H-E-B Kicks-off New Year with Renewed Commitment to Customer Savings by Slashing Prices on More Than 5,000 Products' (Press release). Business Wire. 2010-01-06. Retrieved 20 July 2016.
- ^'History'. Company Info. H-E-B. Retrieved 2010-03-12.
- ^Kleiner, Diana J. 'H-E-B'. The Handbook of Texas Online. Texas State Historical Association. Retrieved 8 November 2010.
- ^'Craig Boyan to Lead H-E-B as New President and COO'. BusinessWire (Press release). San Antonio: BusinessWire. 2010-01-23. Retrieved 2010-11-02.
- ^'H-E-B's Martin Otto wins leadership award'. APhA. Retrieved 24 May 2018.
- ^DeCarlo, Scott; Murphy, Andrea D. (16 November 2011). 'America's Largest Private Companies'. Forbes.
- ^'H. E. Butt Grocery Company'. Companies. Hoover's. Retrieved 2010-03-11.
- ^H‑E‑B and Favor Delivery to Join Forces, H-E-B, retrieved March 14, 2018
- ^Copeland, Mike, Mike Copeland: Self checkout at H-E-B; Gas prices up; New medical facility on horizon, Waco Tribune-Herald, retrieved May 2, 2019
- ^'H-E-B appoints new president, reorganizes senior management'. San Antonio Business Journal. 25 January 2010. Retrieved 17 December 2010.
- ^'Find a Store'. Retrieved 14 November 2010.
- ^Major, Meg; Dudlicek, James (October 2010). 'Retailer of the Year: The Heart of Texas'. Progressive Grocer. Archived from the original on 2010-12-18. Retrieved 17 December 2010.Cite uses deprecated parameter
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(help) - ^Hendricks, David. 'New president is named at H-E-B'. Retrieved November 14, 2010.
- ^Hendricks, David; Sunday, effective. 'New President Named at HEB'. Retrieved 14 November 2010.
- ^Rutledge, Tanya. 'H-E-B closing door on pantry conceptArchived October 21, 2016, at the Wayback Machine.' Houston Business Journal. Friday July 28, 2000. Retrieved on August 25, 2010.
- ^Kaplan, David (28 October 2010). 'H-E-B going extra mile on new Montrose store'. Houston Chronicle. Retrieved 14 November 2010.
- ^'The Largest Private Companies'. Forbes.com. November 9, 2006. Retrieved 15 November 2006.
- ^ ab'Doors opening at second H-E-B Plus'. MySA.com. November 1, 2006. Archived from the original on 2007-09-29. Retrieved November 2, 2006.Cite uses deprecated parameter
|dead-url=
(help) - ^H-E-B collaborates on new Hawaiian health drink venture, San Antonio Business Journal, December 21, 2006.
- ^Briefs[permanent dead link], MySA.com, December 23, 2006.
- ^Austin's first Maui Wowi store opens in HEBArchived March 10, 2007, at the Wayback Machine, Austin Business Journal, February 12, 2007.
- ^Allen, Elizabeth. 'In the shadow of a grocery giant A thrifty strategy La Fiesta caters to Hispanic market and keeps overhead to a minimum.' San Antonio Express-News. Tuesday December 31, 2002. Business 1E. Retrieved on December 1, 2011.
- ^'Dell is no longer Austin's largest employer'. www.bizjournals.com. Retrieved 2018-01-11.
- ^'Central Market to Bring Argentina to Texas in Celebration of South American Bicentennial' (Press release). BusinessWire. 2010-03-03. Archived from the original on 2012-02-27. Retrieved 2010-03-11.Cite uses deprecated parameter
|dead-url=
(help) - ^Vaughan, Vicki (16 October 2008). 'H-E-B Alon Market set to open'. San Antonio Express News. Retrieved 12 November 2010.[permanent dead link]
- ^Jackson, Kim (6 November 2007). 'H-E-B Vintage Market to open Nov. 14'. The Houston Chronicle. Retrieved 12 November 2010.
- ^'Fairfield Market H-E-B'. 2013. Retrieved 23 April 2013.
- ^Spring Creek Market H-E-BArchived February 13, 2016, at the Wayback Machine H-E-B. Retrieved 2 August 2015.
- ^'H-E-B to start work on Kyle store'. Austin American-Statesman. November 1, 2006. Archived from the original on September 13, 2012. Retrieved 2 November 2006.Cite uses deprecated parameter
|dead-url=
(help) - ^Plus to open Friday in LeanderAustin American-Statesman, February 22, 2007.
- ^Dawson, Jennifer (July 12, 2006). 'Pearland retail center lands H-E-B as anchor'. Houston Business Journal. Retrieved 8 October 2006.
- ^'H-E-B Plus is coming to the North Side'. MySA.com. July 8, 2006. Archived from the original on 2007-09-29. Retrieved 8 October 2006.Cite uses deprecated parameter
|dead-url=
(help) - ^'H-E-B converting North Side store to Plus'. MySA.com. March 14, 2007. Archived from the original on 2007-03-21. Retrieved 1 April 2007.Cite uses deprecated parameter
|dead-url=
(help) - ^Audrey Spencer, Herald staff writer. 'H-E-B Plus opens in Cove'. kdhnews.com. Retrieved 27 March 2018.
- ^'H-E-B courts Latinos with new Houston store'. MySA.com. October 5, 2006. Archived from the original on 2007-03-17. Retrieved 8 October 2006.Cite uses deprecated parameter
|dead-url=
(help) - ^'Vendor E-1.pdf.' (Archive) Texas Department of State Health Services. Accessed June 16, 2008.
- ^Kaplan, David (2011-12-05). 'First look at reinvented Mi Tienda'. Houston Chronicle. Retrieved 2017-06-28.
- ^Kaplan, David (2011-12-05). 'Second Mi Tienda to be twice as big as first'. Houston Chronicle. Retrieved 2017-06-28.
- ^Kaplan, David. 'New H-E-B concept is discount-mindedArchived December 21, 2010, at the Wayback Machine.'Houston Chronicle. April 20, 2010. Retrieved on May 4, 2010.
- ^Joe V's Smart Shop. Retrieved on May 4, 2010.
- ^Joe V’s Smart Shop Opens Store #7 Joe V's Smart Shop. Retrieved 20 July 2016.
- ^Wollam, Allison (9 May 2010). 'H-E-B launches new concept despite naming spat with Trader Joe's'. Houston Business Journal. Retrieved 17 December 2010.
- ^'H-E-B expanding in Texas and crime-ridden Mexico'. chron.com. Retrieved 27 March 2018.
- ^'A Century of Shopping: H-E-B hits 100'. MySanAntonio.com. November 22, 2005. Archived from the original on 2007-09-29. Retrieved 15 June 2007.Cite uses deprecated parameter
|dead-url=
(help) - ^'The Paradox of Predatory Pricing'(PDF). Cornell Law Review. November 1, 2005. p. 16. Retrieved 24 June 2019.
- ^'A Century of Shopping: H-E-B hits 100'. MySanAntonio.com. November 22, 2005. Archived from the original on 2007-09-29. Retrieved 15 June 2007.Cite uses deprecated parameter
|dead-url=
(help) - ^'Grocer pays $12 million in whistleblower case'.
- ^Barkhurst, Ariel (2009-12-20). 'Thousands enjoy H-E-B Feast of Sharing'. San Antonio Express News. San Antonio: Hearst Newspapers. Retrieved 2010-03-12.[permanent dead link]
- ^Moravec, Eva Ruth (2009-03-28). 'H-E-B recognizes 40 Texans vying for education awards'. San Antonio Express News. San Antonio: Hearst Newspapers. Archived from the original on 2009-03-31. Retrieved 2010-03-12.Cite uses deprecated parameter
|dead-url=
(help) - ^Riemenschneider, Pamela (2013-04-22). 'HEB coordinates donations to West, Texas'. The Packer. Vance Publishing. Archived from the original on 2013-05-26. Retrieved 2013-04-23.Cite uses deprecated parameter
|dead-url=
(help) - ^ abRoethler, Eva (2017-08-30). 'H-E-B Donations Reach $1 Million and Deploys Response Teams for Harvey Relief Efforts'. And Now U Know. Retrieved 2018-11-09.
- ^'How H-E-B Took Care of its Communities During Harvey'. Texas Monthly. 2017-09-06. Retrieved 2018-11-09.
External links[edit]
Wikimedia Commons has media related to H-E-B. |
- Official website
- H-E-B Mexico(in Spanish)
- H-E-B at YouTube
- Forbes.com Forbes' 2004 List of World's Richest People: Charles Butt
- 'H-E-B'. Archived from the original on April 5, 1997. Retrieved October 30, 2013.Cite uses deprecated parameter
|dead-url=
(help)CS1 maint: BOT: original-url status unknown (link)
Retrieved from 'https://en.wikipedia.org/w/index.php?title=H-E-B&oldid=912585657'
What a year it's been for the IRS! The Tax Cuts and Jobs Act triggered many changes in the tax code, as well as the issuance of several new forms. The 1040A and 1040EZ are gone, and the new 1040-for-all form is much abbreviated. There are six new schedules. All these changes for 2018 returns have kept accounting professionals and tax preparation software providers busy, to say the least.
Now it's your turn. Personal tax preparation websites are up and running, and the IRS is finally accepting returns (barring further government shutdowns). It's time to think about gathering up all your tax documents and plugging your numbers into a tax site, which thirty-seven pecent of you do for yourselves, according to a recent PCMag survey.
If you're still doing your taxes manually—using paper forms, calculator, and pencil—you should really consider moving the process online. Our survey showed that (at least among people with enough computer savvy to take an online survey) only 10 percent of you were doing your taxes manually, and only half of those people were sending your taxes in via snail mail (the rest e-filing with the IRS directly). For those holdouts among you, new laws and new forms are complicating what was already a complex activity. They might even help you get a bigger tax refund!
A Smooth Transition
With all the changes that have occurred, what will you find when you log into H&R Block, TurboTax, TaxAct, or any of the other websites whose developers have been planning for the end of January 2019 for 13 months?
If you've used a personal tax preparation website or desktop software before and you go back to that same product this year, you're not going to notice much of a difference. Every site we reviewed this year has made improvements, some more than others. But they're the usual modifications—user interface tweaks and enhancements to support resources and changes to prices and product lineups.
For the most part, this year's crop of contenders looks and works much as it did for the 2017 tax year. What's going on in the background as your tax data is calculated and rerouted to accommodate the new laws and forms, though, is very different. The companies that make today's leading tax sites worked extra hard in 2018—so that you don't have to in 2019.
What the New Tax Law Means for You
You've probably heard about at least some of the changes you'll be seeing for the 2018 tax year resulting from the Tax Cuts and Jobs Act. There are two that are likely to affect you the most. First is the lowering of individual tax rates. There are still seven brackets, but they've all been reduced. You'll be taxed at rates of 10, 12, 22, 24 32, 35, or 37 percent. Second, the standard deduction has been nearly doubled to $12,000 for single filers; $18,000 for heads of household; and $24,000 for joint filers.
Congress did eliminate the personal exemption, but positive changes to the Child Tax Credit may make up for at least part of this loss. If your medical and dental expenses made up more than 7.5 percent of your AGI (adjusted gross income) in tax year 2018, you'll be able to deduct them (the minimum was previously 10 percent).
It's not all good news for individual taxpayers, though. The tax reform law has placed a new limit on the deduction for state and local taxes. If you're paying home mortgage interest, you'll no longer be able to deduct it if your home is worth more than $750,000. Interest on home equity loans and lines of credit isn't deductible anymore, either, unless they're used to, '…buy, build, or substantially approve the taxpayer's home that secures the loan,' according to the IRS.
Those are just a few of the highlights of the new tax law. For more details on what it means for your tax-preparation and filing procedures, read Filing Your Taxes Isn't Simpler This Year: Here's What You Need to Know.
How Online Tax Software Works
When you prepare your income taxes using paper forms, you spend a lot of time shuttling back and forth between them. You come to a line on the 1040 that requires a supporting form or schedule, so you go there and complete it, and then transfer the number back to the 1040. Sometimes you'll need to fill out a worksheet or chase down a document you got in the mail or double-check your calculations because things just don't look right. You may have to do this many times if your return has any complexity.
Tax websites work much differently. Once you create an account and comply with the site's security requirements, you can stop worrying about which forms you need and whether your calculations are correct. You also won't need to worry about how the Tax Cuts and Jobs Act is going to affect your return. That's all taken care of for you in the background.
When you use a digital tax preparation solution, you're really just filling out a giant questionnaire. These sites work like giant wizards: They ask questions on every page, and you respond by providing answers. You enter information in blank fields, select the correct option from a list, or click a button. When you've satisfied all the requirements of a screen, you move on to the next and complete that. You never have to see an actual IRS form or schedule (though in some cases, you can if you want to).
You'll probably recognize the path you're taking. It's patterned after the order of the IRS Form 1040. You provide contact information first, including Social Security number(s) and birthdate(s), and then move on to your income, deductions, credits, health insurance status, and taxes paid. When you've exhausted all the topics that apply to you and seen a summary of your entries, these sites review your return and highlight errors or omissions you might have made.
After you've cleaned them all up, the software transfers your tax data to any state returns you must file. Once you've answered miscellaneous questions there and checked your entire return, you're asked to pay the service's fees (if there are any). Finally, you can file your return electronically and print it out. After that's done, don't forget to use a good shredder on those documents once you're done.
The Tax Software Interface and Process
Along the way, personal tax preparation websites provide a lot of support for you. After all, how helpful would they be if they just displayed replicas of the actual IRS forms and schedules on the screen and asked you to fill them in using the IRS instructions?
Instead, some of these solutions, such as H&R Block and TurboTax, provide state-of-the-art user experiences. They're designed to makes what is an unpleasant task more palatable. They use color, graphics, design, and layout to present screens that are lively and attractive, rather than dull and lifeless like the actual forms.
The step-by-step data entry path that they provide generally works quite well—as long as you work your way through your whole return without a lot of backing up or lurching forward. Jackson Hewitt Online asks whether you'd like to complete your 1040 by using its comprehensive interview; this option takes you through the entire process in one long Q&A session. It asks you about every tax topic that might possibly apply to you.
The other alternative, one that every online service offers, involves selecting the topics that apply to you. You choose these from the lists they provide for income, deductions, credits, and taxes. When you select one, these sites walk you through mini-interviews to get the information they need. Then they return you to the main list to choose another topic, and so on, until you're finished.
All of the sites we reviewed are a hybrid of these two approaches. The point is, all you have to do is read what's on the screen and follow its instructions. You spend most of your time responding to questions and clicking links to advance to the next screen or using the site-wide navigation tool. These sites are good guides, most of the time.
Speaking Your Language
If you've ever filed a tax return, you know it can be a challenge to understand the IRS's language on its forms and schedules. Turning to the written instructions sometimes doesn't help much. They're quite comprehensive—so comprehensive, in fact, that it's often hard to find the answer to your exact question. When you do find it, the language, again, can be difficult to decipher.
From their earliest days, personal tax software developers have sought to interpret IRS-ese and make it more understandable to the non-accountant. They've written and rewritten their content so that the average taxpayer can understand what's being requested. Further, sites like TaxAct do more. For example, they provide hyperlinks to small help windows that further explain a term or phrase. They anticipate questions you might ask and post Q&As on especially complex topics. They try to ensure that you understand the question being asked so that you'll provide the correct answer.
More Tax Help Needed?
Sometimes, though, a friendly, understandable user experience and clarification of the content displayed on screens isn't enough. So tax websites provide online assistance. Some, including H&R Block, provide context-sensitive explanations in panes attached to the main working area.
In some cases, this guidance isn't available until you click a Help link. And sometimes when you do that, you have access to a giant database of questions and answers. You may be directed to IRS instructions and publications on a few sites, but usually the technical content has been rewritten to make it understandable.
What do you do if your efforts to find help on the site itself fail? You might have one of several types of questions: The first goes something like, 'Where do I enter the information that's on this paper form I got?' Or, 'The site won't let me advance to the next page. What did I do wrong?' Or, simply, 'I'm stuck. I can't find my way back to the screen where I enter mortgage interest information.'
All sites offer at least one of three ways to contact the company's technical support representatives: by email, phone, and or chat. TaxSlayer, for example, offers all three. Some, like H&R Block, offer online communities where you can see if your problem has already been addressed by someone else.
These technical support representatives cannot advise you on points of tax law, though. So some offer to hook you up with an accounting professional. Though you'll pay extra fees, you'll get the most innovative, most comprehensive guidance if you use TurboTax. Its TurboTax Live offering connects you with a CPA or EA (Enrolled Analyst) via live video chat, not just during tax season but year-round. H&R Block users can add unlimited, on-demand screen-sharing and chat sessions with a tax expert for an added fee that starts at $39.99, and customers of TaxAct Deluxe and above receive unlimited phone support from tax specialists.
Are There Any Free Tax Services?
Prices for this year's tax websites range from free to over $100. It turns out that you can get a lot for free. According to our tax survey, seventeen percent of you use free services, in fact. Twenty percent of you use paid software. Every company whose website we reviewed (except Liberty Tax Online) offers a version that costs nothing to prepare and file your federal taxes. All support the new Form 1040 and assume you'll be taking the standard deduction. You can record—or import, in some cases—your W-2 data in all of them.
Each goes even further than that in some ways. H&R Block is the most generous in its free offerings among the normally paid services. Block supports retirement plan and Social Security income, child care expenses and child tax credit, the Earned Income Credit (EIC), and student loan interest. TaxAct, too, allows retirement income, while TurboTax lets you report limited interest and dividend income, the EIC, and child tax credits. Using TaxSlayer, you can enter your student loan interest and education credits. And Jackson Hewitt's free edition will prepare and file the EIC, unemployment, interest income, and up to $100,000 taxable income.
Two of the online tax services we reviewed are free (or nearly free): Credit Karma Tax and FreeTaxUSA. Both support all major IRS forms and schedules. FreeTaxUSA costs nothing unless you need to file a state return; that will cost $12.95. You can also buy enhanced support for $6.99. Credit Karma Tax is the only personal tax preparation website that is totally free, for both federal and state.
Not for Everyone
The eight personal tax preparation websites we reviewed are capable of producing very complex tax returns. You'll pay more if you need more forms and schedules to complete (we reviewed the most popular versions, which in some cases were not the most robust), but the tools are there for advanced topics like self-employment, depreciation, rental income, and capital gains.
If you're not comfortable with your own ability to complete a complicated tax return but still want to give it a shot, you can go with a site like H&R Block. The company offers DIY preparation and filing, of course. But if you get partway through and realize you're not sure of some tax issues, you can have an H&R Block tax professional review your return, complete it, and sign it.
If you're so uncomfortable with taxes that you've procrastinated a bit too much, we have some suggestions for you. Our article Tax Tips for Last-Minute E-Filers is for the one in seven of you who wait till the tax deadline has nearly arrived.
Stay Safe, Protect Your Privacy
Whenever you're going to be sending sensitive information over a network you don't control, you should be concerned. Since taxes are nothing but sensitive data, you ought to be doubly concerned if you're filing from a coffee shop, say, or the airport. About half of you get this, it seems, as our tax survey shows that 47 percent of those who use online tax software are concerned about their data being compromised.
Fortunately, protecting your traffic is as simple as using a VPN. A VPN can create a secure tunnel that encrypts your data, ensuring that anyone who manages to intercept it sees only gibberish.
No amount of security software can keep you safe if you fall for a telephone, email, or in-person tax scam, however. Scammers often rely on you to simply tell them what they want to know, instead of by getting it out of your computer with malware. Instead, they simply pretend to be someone, say the IRS, who you'd likely believe might have a reason to be inquiring, and ask you for your secret information or for payments on imaginary fees you supposedly owe. Read our piece on how to protect yourself from tax-season scams and save yourself money and heartache.
What Is the Easiest Tax Software to Use?
If this is the first time you've ever considered tackling this project yourself, we recommend H&R Block, our Editor's Choice, this year. TurboTax has won this award numerous times in the past, and it also remains an exceptional family of digital tax products. H&R Block, though, has improved its website in numerous ways since last year. It offers a more state-of-the-art user experience, with exceptionally accessible, understandable guidance. That support and guidance makes a complex process easy—or at least easier. It's fast, it's a great value, it's built on decades of tax knowledge, and it's the best for the 2018 tax year.
Note that H&R Block wins for the best desktop software. If you're going to fill out your taxes on your mobile device—yes, that's right, you can do your taxes on your phone—you'll want to try out Intuit's TurboTax Return App, which is our number one choice for mobile tax filing thanks to its excellent interface and accessible, innovative help options.
While you're thinking about your financial situation and you have all your documents about you, we suggest that you also take a look at our roundup of the best personal finance services. The best day to start a budget is yesterday, but today isn't bad, either. If you're a business owner, it's also a good time to make sure your books are in order. Our overview of small business accounting software is an excellent place to get started.
Best Tax Preparation Software Featured in This Roundup:
H&R Block Deluxe 2019 (Tax Year 2018) Review
MSRP: $29.99Pros: Excellent user experience. Clear navigation. Comprehensive coverage of tax topics. Top help tools. Thorough return review.Cons: Lacks linear navigation wizard and all-in-one step-through of topics.Bottom Line: H&R Block Deluxe is a comprehensive, easy-to-use tax service that helps e-filers claim relevant deductions and credits. The site is much improved, both in terms of the user experience and help options. It's our top choice for online tax preparation.Read ReviewIntuit TurboTax Deluxe 2019 (Tax Year 2018) Review
MSRP: $59.99Pros: Excellent user experience and selection of tax topics. Thorough interview and final review. TurboTax Live provides year-round live video support from experts.Cons: Some answers in help database supplied by nonexpert users. Location of help topics uneven; help pane usually not context-sensitive.Bottom Line: TurboTax Deluxe offers thorough explorations of tax forms and schedules, and an exceptional user experience to both new and returning taxpayers, but it's help system could be better.Read ReviewTaxSlayer Classic 2019 (Tax Year 2018) Review
MSRP: $17.00Pros: Inexpensive. Supports all major IRS forms and schedules. W-2 import from providers. Email and phone help. Good knowledge base.Cons: Weak context-sensitive help. Unrefined user experience. Tax-return review not effective in testing. Mobile apps are incomplete.Bottom Line: TaxSlayer Classic is an affordable tax preparation service that gets a little better every year, but its context-sensitive help is still subpar and its user interface lacks polish.Read ReviewFreeTaxUSA Deluxe 2019 (Tax Year 2018) Review
MSRP: $6.99Pros: Fast. Free federal e-filing. Inexpensive state filing. Comprehensive site outline. Flexible navigation. Context-sensitive help. Excellent mobile experience.Cons: No start-to-finish interview option. No Life Events feature. Can't import W-2s or 1099s.Bottom Line: FreeTaxUSA is a robust online personal tax preparation service that lets you e-file federal tax returns for free, though you have to pay modest fees for state filing and extra support.Read ReviewTaxAct Deluxe Plus 2019 (Tax Year 2018) Review
MSRP: $47.95Pros: Good navigation tools. Solid user interface. Phone and email help. Thorough review process. Price guarantee. Good mobile experience.Cons: Some help links lead directly to IRS documents. Expensive per-state filing. Some tax topics moved into pricier tiers.Bottom Line: TaxAct competently supports online tax preparation for both new and experienced users. Though its interface is vastly improved this year, H&R Block and TurboTax are still easier to use.Read ReviewCredit Karma Tax 2019 (Tax Year 2018) Review
MSRP: $0.00Pros: Free. Supports most IRS and state forms and schedules. Clean, simple interface. New guidance options. Much improved mobile access. Context-sensitive FAQs and chat help.Cons: Missing some important forms. Search tool not always accurate, and overall support still sketchy. No site navigation tool.Bottom Line: The completely free Credit Karma Tax supports most IRS forms and schedules for federal and state returns, though it lacks some common ones. Support and mobile access have improved, but it has a ways to go to catch the leaders.Read ReviewLiberty Tax Online Basic 2019 (Tax Year 2018) Review
MSRP: $29.95Pros: Simple user experience. Innovative navigation pane. Excellent review process. Smart credit finder.Cons: No consistent context-sensitive help. No hyperlinked terms in Q&A. Expensive state returns. Awkward mobile versions.Bottom Line: Liberty Tax is a decent service from the well-known brick-and-mortar tax preparers. It's easy enough to use but lacks well-integrated, accessible guidance and its interface is dated.Read ReviewJackson Hewitt Online 2019 (Tax Year 2018) Review
MSRP: $109.95Pros: Good coverage of tax topics. Comprehensive interview option. Background bookkeeping. Good error-checking. Good mobile version.Cons: Amount and quality of context-sensitive help is lacking. User experience not on a par with competitors. Some navigation quirks. Expensive.Bottom Line: Online tax service Jackson Hewitt can get the job done, but it's expensive, especially considering its subpar user interface and help system. There are better choices, for less money.Read Review