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H&r Block 2010 Tax Software

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H&r Block 2010 Tax Software

H&r block 2010 tax software 5. H&r block 2010 tax software   Credits Table of Contents Credit for the Elderly or the DisabledCan You Take the Credit? Figuring the Credit Child and Dependent Care Credit Earned Income Credit (EIC)Do You Qualify for the Earned Income Credit (EIC)? Figuring the EIC This chapter briefly discusses the credit for the elderly or disabled, the child and dependent care credit, and the earned income credit. H&r block 2010 tax software You may be able to reduce your federal income tax by claiming one or more of these credits. H&r block 2010 tax software Credit for the Elderly or the Disabled This section explains who qualifies for the credit for the elderly or the disabled and how to figure this credit. H&r block 2010 tax software For more information, see Publication 524, Credit for the Elderly or the Disabled. H&r block 2010 tax software You can take the credit only if you file Form 1040 or Form 1040A. H&r block 2010 tax software You cannot take the credit if you file Form 1040EZ or Form 1040NR. H&r block 2010 tax software Can You Take the Credit? You can take the credit for the elderly or the disabled if you meet both of the following requirements. H&r block 2010 tax software You are a qualified individual. H&r block 2010 tax software Your income is not more than certain limits. H&r block 2010 tax software  You can use Figure 5-A and Figure 5-B as guides to see if you are eligible for the credit. H&r block 2010 tax software   Qualified Individual You are a qualified individual for this credit if you are a U. H&r block 2010 tax software S. H&r block 2010 tax software citizen or resident alien, and either of the following applies. H&r block 2010 tax software You were age 65 or older at the end of 2013. H&r block 2010 tax software You were under age 65 at the end of 2013 and all three of the following statements are true. H&r block 2010 tax software You retired on permanent and total disability (explained later). H&r block 2010 tax software You received taxable disability income for 2013. H&r block 2010 tax software On January 1, 2013, you had not reached mandatory retirement age (defined later under Disability income ). H&r block 2010 tax software Age 65. H&r block 2010 tax software You are considered to be age 65 on the day before your 65th birthday. H&r block 2010 tax software Therefore, you are considered to be age 65 at the end of 2013 if you were born before January 2, 1949. H&r block 2010 tax software Figure 5-A. H&r block 2010 tax software Are You a Qualified Individual? This image is too large to be displayed in the current screen. H&r block 2010 tax software Please click the link to view the image. H&r block 2010 tax software Figure 5-A, Are you a qualified individual? U. H&r block 2010 tax software S. H&r block 2010 tax software citizen or resident alien. H&r block 2010 tax software   You must be a U. H&r block 2010 tax software S. H&r block 2010 tax software citizen or resident alien (or be treated as a resident alien) to take the credit. H&r block 2010 tax software Generally, you cannot take the credit if you were a nonresident alien at any time during the tax year. H&r block 2010 tax software Exceptions. H&r block 2010 tax software   You may be able to take the credit if you are a nonresident alien who is married to a U. H&r block 2010 tax software S. H&r block 2010 tax software citizen or resident alien at the end of the tax year and you and your spouse choose to treat you as a U. H&r block 2010 tax software S. H&r block 2010 tax software resident alien. H&r block 2010 tax software If you make that choice, both you and your spouse are taxed on your worldwide income. H&r block 2010 tax software   If you were a nonresident alien at the beginning of the year and a resident alien at the end of the year, and you were married to a U. H&r block 2010 tax software S. H&r block 2010 tax software citizen or resident alien at the end of the year, you may be able to choose to be treated as a U. H&r block 2010 tax software S. H&r block 2010 tax software resident alien for the entire year. H&r block 2010 tax software In that case, you may be allowed to take the credit. H&r block 2010 tax software   For information on these choices, see chapter 1 of Publication 519, U. H&r block 2010 tax software S. H&r block 2010 tax software Tax Guide for Aliens. H&r block 2010 tax software Married persons. H&r block 2010 tax software   Generally, if you are married at the end of the tax year, you and your spouse must file a joint return to take the credit. H&r block 2010 tax software However, if you and your spouse did not live in the same household at any time during the tax year, you can file either a joint return or separate returns and still take the credit. H&r block 2010 tax software Head of household. H&r block 2010 tax software   You can file as head of household and qualify to take the credit even if your spouse lived with you during the first 6 months of the year if you meet certain tests. H&r block 2010 tax software See Publication 524 and Publication 501. H&r block 2010 tax software Under age 65. H&r block 2010 tax software   If you are under age 65 at the end of 2013, you can qualify for the credit only if you are retired on permanent and total disability and have taxable disability income (discussed later under Disability income ). H&r block 2010 tax software You are considered to be under age 65 at the end of 2013 if you were born after January 1, 1949. H&r block 2010 tax software You are retired on permanent and total disability if: You were permanently and totally disabled when you retired, and You retired on disability before the end of the tax year. H&r block 2010 tax software   Even if you do not retire formally, you may be considered retired on disability when you have stopped working because of your disability. H&r block 2010 tax software If you retired on disability before 1977 and were not permanently and totally disabled at the time, you can qualify for the credit if you were permanently and totally disabled on January 1, 1976, or January 1, 1977. H&r block 2010 tax software Permanent and total disability. H&r block 2010 tax software   You are permanently and totally disabled if you cannot engage in any substantial gainful activity because of your physical or mental condition. H&r block 2010 tax software A physician must certify that the condition has lasted or can be expected to last continuously for 12 months or more, or that the condition can be expected to result in death. H&r block 2010 tax software See Physician's statement , later. H&r block 2010 tax software Substantial gainful activity. H&r block 2010 tax software   Substantial gainful activity is the performance of significant duties over a reasonable period of time while working for pay or profit, or in work generally done for pay or profit. H&r block 2010 tax software   Full-time work (or part-time work done at the employer's convenience) in a competitive work situation for at least the minimum wage conclusively shows that you are able to engage in substantial gainful activity. H&r block 2010 tax software   Substantial gainful activity is not work you do to take care of yourself or your home. H&r block 2010 tax software It is not unpaid work on hobbies, institutional therapy or training, school attendance, clubs, social programs, and similar activities. H&r block 2010 tax software However, doing this kind of work may show that you are able to engage in substantial gainful activity. H&r block 2010 tax software    Figure 5-B. H&r block 2010 tax software Income Limits IF your filing status is. H&r block 2010 tax software . H&r block 2010 tax software . H&r block 2010 tax software THEN even if you qualify (see Figure 5-A), you CANNOT take the credit if: Your adjusted gross income (AGI)* is equal to or more than. H&r block 2010 tax software . H&r block 2010 tax software . H&r block 2010 tax software OR the total of your nontaxable social security and other nontaxable pension(s), annuities, or disability income is equal to or more than. H&r block 2010 tax software . H&r block 2010 tax software . H&r block 2010 tax software single, head of household, or qualifying widow(er) with dependent child $17,500 $5,000 married filing jointly and only one spouse qualifies in Figure 5-A $20,000 $5,000 married filing jointly and both spouses qualify in Figure 5-A $25,000 $7,500 married filing separately and you lived apart from your spouse for all of 2013 $12,500 $3,750 *AGI is the amount on Form 1040A, line 22, or Form 1040, line 38      The fact that you have not worked for some time is not, of itself, conclusive evidence that you cannot engage in substantial gainful activity. H&r block 2010 tax software Physician's statement. H&r block 2010 tax software   If you are under age 65, you must have your physician complete a statement certifying that you were permanently and totally disabled on the date you retired. H&r block 2010 tax software   You do not have to file this statement with your tax return, but you must keep it for your records. H&r block 2010 tax software The Instructions for Schedule R (Form 1040A or 1040) include a statement your physician can complete and that you can keep for your records. H&r block 2010 tax software Veterans. H&r block 2010 tax software   If the Department of Veterans Affairs (VA) certifies that you are permanently and totally disabled, you can substitute VA Form 21-0172, Certification of Permanent and Total Disability, for the physician's statement you are required to keep. H&r block 2010 tax software VA Form 21-0172 must be signed by a person authorized by the VA to do so. H&r block 2010 tax software You can get this form from your local VA regional office. H&r block 2010 tax software Physician's statement obtained in earlier year. H&r block 2010 tax software   If you got a physician's statement in an earlier year and, due to your continued disabled condition, you were unable to engage in any substantial gainful activity during 2013, you may not need to get another physician's statement for 2013. H&r block 2010 tax software For a detailed explanation of the conditions you must meet, see the instructions for Schedule R (Form 1040A or 1040), Part II. H&r block 2010 tax software If you meet the required conditions, you must check the box on Schedule R (Form 1040A or 1040), Part II, line 2. H&r block 2010 tax software   If you checked Schedule R (Form 1040A or 1040), Part I, box 4, 5, or 6, print in the space above the box in Part II, line 2, the first name(s) of the spouse(s) for whom the box is checked. H&r block 2010 tax software Disability income. H&r block 2010 tax software   If you are under age 65, you must also have taxable disability income to qualify for the credit. H&r block 2010 tax software   Disability income must meet the following two requirements. H&r block 2010 tax software It must be paid under your employer's accident or health plan or pension plan. H&r block 2010 tax software It must be included in your income as wages (or payments in lieu of wages) for the time you are absent from work because of permanent and total disability. H&r block 2010 tax software Payments that are not disability income. H&r block 2010 tax software   Any payment you receive from a plan that does not provide for disability retirement is not disability income. H&r block 2010 tax software Any lump-sum payment for accrued annual leave that you receive when you retire on disability is a salary payment and is not disability income. H&r block 2010 tax software   For purposes of the credit for the elderly or the disabled, disability income does not include amounts you receive after you reach mandatory retirement age. H&r block 2010 tax software Mandatory retirement age is the age set by your employer at which you would have had to retire had you not become disabled. H&r block 2010 tax software Figuring the Credit You can figure the credit yourself, or the IRS will figure it for you. H&r block 2010 tax software Figuring the credit yourself. H&r block 2010 tax software   If you figure the credit yourself, fill out the front of Schedule R (Form 1040A or 1040). H&r block 2010 tax software Next, fill out Schedule R (Form 1040A or 1040), Part III. H&r block 2010 tax software Credit figured for you. H&r block 2010 tax software   If you can take the credit and you want the IRS to figure the credit for you, see Publication 524 or the Instructions for Schedule R (Form 1040A or 1040). H&r block 2010 tax software If you want the IRS to figure your tax, see chapter 30 of Publication 17, Your Federal Income Tax. H&r block 2010 tax software Child and Dependent Care Credit You may be able to claim this credit if you pay someone to care for your dependent who is under age 13 or for your spouse or dependent who is not able to care for himself or herself. H&r block 2010 tax software The credit can be up to 35% of your expenses. H&r block 2010 tax software To qualify, you must pay these expenses so you can work or look for work. H&r block 2010 tax software If you claim this credit, you must include on your return the name and taxpayer identification number (generally the social security number) of each qualifying person for whom care is provided. H&r block 2010 tax software If the correct information is not shown, the credit may be reduced or disallowed. H&r block 2010 tax software You also must show on your return the name, address, and the taxpayer identification number of the person(s) or organization(s) that provided the care. H&r block 2010 tax software For more information, see Publication 503, Child and Dependent Care Expenses. H&r block 2010 tax software Earned Income Credit (EIC) The earned income credit (EIC) is a refundable tax credit for certain people who work and have earned income under $51,567. H&r block 2010 tax software The EIC is available to persons with or without a qualifying child. H&r block 2010 tax software Credit has no effect on certain welfare benefits. H&r block 2010 tax software   Any refund you receive because of the EIC cannot be counted as income when determining whether you or anyone else is eligible for benefits or assistance, or how much you or anyone else can receive, under any federal program or under any state or local program financed in whole or in part with federal funds. H&r block 2010 tax software These programs include the following. H&r block 2010 tax software Medicaid and supplemental security income (SSI). H&r block 2010 tax software Supplemental Nutrition Assistance Program (food stamps). H&r block 2010 tax software Low-income housing. H&r block 2010 tax software Temporary Assistance for Needy Families (TANF). H&r block 2010 tax software  In addition, when determining eligibility, the refund cannot be counted as a resource for at least 12 months after you receive it. H&r block 2010 tax software Check with your local benefit coordinator to find out if your refund will affect your benefits. H&r block 2010 tax software Do You Qualify for the Earned Income Credit (EIC)? Use Table 5-1 as an initial guide to the rules you must meet in order to qualify for the EIC. H&r block 2010 tax software The specific rules you must meet depend on whether you have a qualifying child. H&r block 2010 tax software If you have a qualifying child, the rules in Parts A, B, and D apply to you. H&r block 2010 tax software If you do not have a qualifying child, the rules in Parts A, C, and D apply to you. H&r block 2010 tax software  If, after reading all the rules in each part that applies to you, you think you may qualify for the credit, see Publication 596, Earned Income Credit, for more details about the EIC. H&r block 2010 tax software You can also find information about the EIC in the instructions for Form 1040 (line 64a), Form 1040A (line 38a), or Form 1040EZ (line 8a). H&r block 2010 tax software The sections that follow provide additional information for some of the rules. H&r block 2010 tax software Adjusted gross income (AGI). H&r block 2010 tax software   Under Rule 1, you cannot claim the EIC unless your AGI is less than the applicable limit shown in Part A of Table 5-1. H&r block 2010 tax software Your AGI is the amount on line 37 (Form 1040), line 21 (Form 1040A), or line 4 (Form 1040EZ). H&r block 2010 tax software Table 5-1. H&r block 2010 tax software Earned Income Credit (EIC) in a Nutshell First, you must meet all the rules in this column. H&r block 2010 tax software Second, you must meet all the rules in one of these columns, whichever applies. H&r block 2010 tax software Third, you must meet the rule in this column. H&r block 2010 tax software Part A. H&r block 2010 tax software  Rules for Everyone Part B. H&r block 2010 tax software  Rules If You Have a Qualifying Child Part C. H&r block 2010 tax software  Rules If You Do Not Have a Qualifying Child Part D. H&r block 2010 tax software  Figuring and Claiming the EIC 1. H&r block 2010 tax software Your adjusted gross income (AGI) must be less than: •$46,227 ($51,567 for married filing jointly) if you have three or more qualifying children, •$43,038 ($48,378 for married filing jointly) if you have two qualifying children, •$37,870 ($43,210 for married filing jointly) if you have one qualifying child, or  •$14,340 ($19,680 for married filing jointly) if you do not have a qualifying child. H&r block 2010 tax software 2. H&r block 2010 tax software You must have a valid social security number. H&r block 2010 tax software  3. H&r block 2010 tax software Your filing status cannot be “Married filing separately. H&r block 2010 tax software ” 4. H&r block 2010 tax software You must be a U. H&r block 2010 tax software S. H&r block 2010 tax software citizen or resident alien all year. H&r block 2010 tax software  5. H&r block 2010 tax software You cannot file Form 2555 or Form 2555-EZ (relating to foreign earned income). H&r block 2010 tax software  6. H&r block 2010 tax software Your investment income must be $3,300 or less. H&r block 2010 tax software  7. H&r block 2010 tax software You must have earned income. H&r block 2010 tax software 8. H&r block 2010 tax software Your child must meet the relationship, age, residency, and joint return tests. H&r block 2010 tax software  9. H&r block 2010 tax software Your qualifying child cannot be used by more than one person to claim the EIC. H&r block 2010 tax software  10. H&r block 2010 tax software You generally cannot be a qualifying child of another person. H&r block 2010 tax software 11. H&r block 2010 tax software You must be at least age 25 but under age 65. H&r block 2010 tax software  12. H&r block 2010 tax software You cannot be the dependent of another person. H&r block 2010 tax software  13. H&r block 2010 tax software You generally cannot be a qualifying child of another person. H&r block 2010 tax software  14. H&r block 2010 tax software You must have lived in the United States more than half of the year. H&r block 2010 tax software 15. H&r block 2010 tax software Your earned income must be less than: •$46,227 ($51,567 for married filing jointly) if you have three or more qualifying children, •$43,038 ($48,378 for married filing jointly) if you have two qualifying children, •$37,870 ($43,210 for married filing jointly) if you have one qualifying child, or •$14,340 ($19,680 for married filing jointly) if you do not have a qualifying child. H&r block 2010 tax software Social security number. H&r block 2010 tax software   Under Rule 2, you (and your spouse if you are married filing jointly) must have a valid social security number (SSN) issued by the Social Security Administration (SSA). H&r block 2010 tax software Any qualifying child listed on Schedule EIC also must have a valid SSN. H&r block 2010 tax software (See Qualifying child , later, if you have a qualifying child. H&r block 2010 tax software )   If your social security card (or your spouse's if you are married filing jointly) says “Not valid for employment” and your SSN was issued so that you (or your spouse) could get a federally funded benefit, you cannot get the EIC. H&r block 2010 tax software An example of a federally funded benefit is Medicaid. H&r block 2010 tax software Investment income. H&r block 2010 tax software   Under Rule 6, you cannot claim the EIC unless your investment income is $3,300 or less. H&r block 2010 tax software If your investment income is more than $3,300, you cannot claim the credit. H&r block 2010 tax software For most people, investment income is the total of the following amounts. H&r block 2010 tax software Taxable interest (line 8a of Form 1040 or 1040A). H&r block 2010 tax software Tax-exempt interest (line 8b of Form 1040 or 1040A). H&r block 2010 tax software Dividend income (line 9a of Form 1040 or 1040A). H&r block 2010 tax software Capital gain net income (line 13 of Form 1040, if more than zero, or line 10 of Form 1040A). H&r block 2010 tax software  If you file Form 1040EZ, your investment income is the total of the amount of line 2 and the amount of any tax-exempt interest you wrote to the right of the words “Form 1040EZ” on line 2. H&r block 2010 tax software   For more information about investment income, see Publication 596, Earned Income Credit. H&r block 2010 tax software Earned income. H&r block 2010 tax software   Under Rule 7, you must have earned income to claim the EIC. H&r block 2010 tax software Under Rule 15, you cannot claim the EIC unless your earned income is less than the applicable limit shown in Table 5-1, Part D. H&r block 2010 tax software Earned income includes all of the following types of income. H&r block 2010 tax software Wages, salaries, tips, and other taxable employee pay. H&r block 2010 tax software Employee pay is earned income only if it is taxable. H&r block 2010 tax software Nontaxable employee pay, such as certain dependent care benefits and adoption benefits, is not earned income. H&r block 2010 tax software But there is an exception for nontaxable combat pay, which you can choose to include in earned income. H&r block 2010 tax software Net earnings from self-employment. H&r block 2010 tax software Gross income received as a statutory employee. H&r block 2010 tax software Gross income defined. H&r block 2010 tax software   Gross income means all income you received in the form of money, goods, property, and services that is not exempt from tax, including any income from sources outside the United States or from the sale of your main home (even if you can exclude part or all of it). H&r block 2010 tax software Do not include any social security benefits unless (a) you are married filing a separate tax return and you lived with your spouse at any time in 2013, or (b) one-half of your social security benefits plus your other gross income and any tax-exempt interest is more than $25,000 ($32,000 if married filing jointly). H&r block 2010 tax software If (a) or (b) applies, see the instructions for Form 1040, lines 20a and 20b to figure the taxable part of social security benefits you must include in gross income. H&r block 2010 tax software Self-employed persons. H&r block 2010 tax software   If you are self-employed and your net earnings are $400 or more, be sure to correctly fill out Schedule SE (Form 1040), Self-Employment Tax, and pay the proper amount of self-employment tax. H&r block 2010 tax software If you do not, you may not get all the credit to which you are entitled. H&r block 2010 tax software Disability benefits. H&r block 2010 tax software   If you retired on disability, taxable benefits you receive under your employer's disability retirement plan are considered earned income until you reach minimum retirement age. H&r block 2010 tax software Minimum retirement age generally is the earliest age at which you could have received a pension or annuity if you were not disabled. H&r block 2010 tax software Beginning on the day after you reach minimum retirement age, payments you receive are taxable as a pension and are not considered earned income. H&r block 2010 tax software   Payments you received from a disability insurance policy that you paid the premiums for are not earned income. H&r block 2010 tax software It does not matter whether you have reached minimum retirement age. H&r block 2010 tax software If this policy is through your employer, the amount may be shown in box 12 of your Form W-2 with code J. H&r block 2010 tax software Income that is not earned income. H&r block 2010 tax software   Examples of items that are not earned income under Rule 7 include interest and dividends, pensions and annuities, social security and railroad retirement benefits (including disability benefits — except for payments covered under Disability benefits earlier), alimony and child support, welfare benefits, workers' compensation benefits, unemployment compensation (insurance), nontaxable foster care payments, and veterans' benefits, including VA rehabilitation payments. H&r block 2010 tax software Do not include any of these items in your earned income. H&r block 2010 tax software Workfare payments. H&r block 2010 tax software   Nontaxable workfare payments are not earned income for the EIC. H&r block 2010 tax software These are cash payments certain people receive from a state or local agency that administers public assistance programs funded under the federal Temporary Assistance for Needy Families (TANF) program in return for certain work activities such as (1) work experience activities (including remodeling or repairing public housing) if sufficient private sector employment is not available, or (2) community service program activities. H&r block 2010 tax software Qualifying child. H&r block 2010 tax software   Under Rule 8, your child is a qualifying child if your child meets four tests. H&r block 2010 tax software The four tests are: Relationship, Age, Residency, and Joint return. H&r block 2010 tax software   The four tests are illustrated in Figure 5-C. H&r block 2010 tax software See Publication 596 for more information about each test. H&r block 2010 tax software Figure 5-C. H&r block 2010 tax software Tests for Qualifying Child A qualifying child for the EIC is a child who is your. H&r block 2010 tax software . H&r block 2010 tax software . H&r block 2010 tax software Son, daughter, stepchild, foster child,  or a descendant of any of them (for example, your grandchild) OR Brother, sister, half brother, half sister, stepbrother,  stepsister, or a descendant of any of them (for example, your  niece or nephew) was . H&r block 2010 tax software . H&r block 2010 tax software . H&r block 2010 tax software Under age 19 at the end of 2013 and younger than you (or your spouse if filing jointly) OR Under age 24 at the end of 2013, a student, and younger than you (or your spouse if filing jointly) OR Permanently and totally disabled at any time during the year, regardless of age who. H&r block 2010 tax software . H&r block 2010 tax software . H&r block 2010 tax software Is not filing a joint return for 2013  (or is filing a joint return for 2013 only as a claim for refund of income tax withheld or estimated tax paid) who. H&r block 2010 tax software . H&r block 2010 tax software . H&r block 2010 tax software Lived with you in the United States for more than half of 2013. H&r block 2010 tax software  If the child did not live with you for the required time, see Publication 596 for more information. H&r block 2010 tax software Figuring the EIC To figure the amount of your credit, you have two choices. H&r block 2010 tax software Have the IRS figure the EIC for you. H&r block 2010 tax software If you want to do this, see IRS Will Figure the EIC for You in Publication 596. H&r block 2010 tax software Figure the EIC yourself. H&r block 2010 tax software If you want to do this, see How To Figure the EIC Yourself in Publication 596. H&r block 2010 tax software Prev  Up  Next   Home   More Online Publications
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The H&r Block 2010 Tax Software

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