H&R Block Tax Software Deluxe

There is an error with HR Block Deluxe 2024 for Form 5329 (tax on excess accumulation; not taking RMDs on time). Specifically, failing to withdraw the full RMD during the tax year but receiving it within the correction window. First, the interview does not give the opportunity to correctly enter the amounts for lines 52 and 53. You have to go to the form itself and enter the correct amounts. In form 5329, I entered: On line 52a, I enter what is required for the year since all of my RMD is from a qualified plan. On line 53a, I enter what is actually distributed (zero, in my case). On line 54a, it calculated the 10% penalty. I then click on the waive penalty, and it generated the "RC penalty amount". Despite the waiver, the penalty was added as additional tax anyway and line 55 is not zero. The correct result should be that Line 55 is zero and that penalty is not applied to my taxes. If the IRS doesn't accept the waiver then I have to pay later. The IRS instructions for Form 5329, under the heading, "Waiver of tax for reasonable cause," specifically state: "Enter "RC" [for "reasonable cause"] and the amount of the shortfall you want waived in parentheses on the dotted line next to line(s) 54a and/or 54b, as applicable. Subtract this amount from the total shortfall you figured without regard to the waiver, and enter the result on line(s) 54a and/or 54b, as applicable." In summary, this means that if you are requesting a waiver for the amount of the penalty, you DO NOT pay the additional tax at the time of filing. The IRS instructions go on to say: "The IRS will review the information you provide and decide whether to grant your request for a waiver. If your request is not granted, the IRS will notify you regarding any additional tax you may owe on the shortfall." The H&R Block software incorrectly adds the additional tax to the amount of tax due, thus ignoring the waiver. I have used this software for many years and this is the first time I needed to speak with their support department. I am giving this review one star because "Help" is non-existent. I tried several times to be connected with a support representative and ended up in a continuous loop in their automated phone system. If you truly understand the IRS rules for taxes and can catch these errors, then maybe the software is acceptable to be used for the convenience of filing electronically. If you don't have a good background in tax, then I would avoid this software. It could cost you a lot of money due to the errors.