With Betterment, you can automatically import your tax information into H&R Block. The soonest you can start importing is Feb. 15, 2023.
If you need your tax forms, you can download them in your account. All tax forms will be ready to download by Feb. 15, 2023.
Note: Software providers may have different versions of their tax preparation software, such as online versus desktop, and not all versions will support automatic import of brokerage data. Betterment cannot control which versions have automatic import enabled, so please ensure you review your options prior to software purchase if you would like to use automatic import features.
Please note that while Betterment has provided the tax information in the format specified by the tax preparation software providers, we do not manage the software itself. If you are experiencing issues with your tax import, we encourage you to contact the providers directly. For direct support from H&R Block, please see the H&R Block support site.
H&R Block may round your data—which could lead to misreporting wash sales.
In some cases, H&R Block software may round the data imported from Betterment. This is not something Betterment can control, so please ensure you verify the data import with the information provided on your Betterment tax forms. For more information on rounding, please see the IRS instructions for Form 8949.
H&R Block’s rounding may cause some values to import as $0; please select all transactions for import into your return to ensure your tax return has all the complete and accurate information provided by Betterment.
If you are using the desktop version, wash sales which are rounded to $0 by H&R Block may not automatically import the adjustment code “W”. Please review your transactions against the PDF provided by Betterment to verify the proper code is selected.
Make sure all of your dividends are imported by selecting both types.
H&R Block imports 1099-DIV information for exempt-interest securities (e.g. MUB, CMF, NYF, and TFI) in two separate transactions, one for taxable dividends and one for tax-exempt dividend amounts. Please select both transactions to ensure you import your complete tax information from Betterment.
Importing Joint Accounts
It is fairly common for people filing taxes together to have both individual accounts and joint accounts at Betterment. Each joint account holder will receive their own copy of the joint account 1099 forms in their Betterment account for tax filing, if applicable for their account. This can lead to duplicate tax forms being imported if appropriate steps are not taken.
For this reason, joint account holders filing together will need to either prevent the duplicate joint account tax forms from importing, or delete any duplicate joint account tax forms that do get imported when they both import their tax forms into tax-filing software. This will avoid double reporting the activity of joint accounts.
- Prevent: When importing tax forms, you will be able to deselect certain tax forms that you do not want to import. You should deselect any joint account 1099 forms that you have already imported.
- Delete: If you do not prevent a duplicate form from being imported, you can delete the duplicate form from within your tax filing software directly.
Instructions for Importing: Online Version of H&R Block
During the import process, H&R Block’s import summary window will provide you with a view of the tax documents imported from Betterment. You will be able to see the corresponding account name for your 1099-DIV and 1099-R tax forms, if you have any, but unfortunately, H&R Block does not allow the import of this information for 1099-B forms, so transactions for multiple accounts will be shown together (as shown in the screenshot below). Please review the applicable PDF tax statement provided on the Activity page of each Betterment account to ensure you import the correct information.
Select the Federal tab of the tax preparation questionnaire and click the “Income” icon in the top toolbar. Select the checkboxes for the tax forms you’ve received (1099-B and 1099-DIV in the “Interest and Investment Income” section and 1099-R in the “Retirement and Social Security Income, Including Retirement Plans” section). Click “Next”, and on the following page, click “Add New 1099” (the exact text will differ for 1099-R, 1099-B, and 1099-DIV).
Type “Betterment” in the “Financial Institution” field and click “Next” to import your data.
Instructions for Importing: Desktop Version of H&R Block
H&R Block’s desktop software does not allow the import of account names. When you log in to Betterment from the H&R Block desktop software, you will see all of the tax information for all of your accounts, but unfortunately, H&R Block will not display the account names for each piece of information. If you decide to use H&R Block’s desktop software, you are responsible for verifying that you are importing information for the correct account.
Select the Federal tab of the tax preparation questionnaire and click the “Income” icon in the top toolbar. From the “Where Do You Want To Go?” screen, click on the appropriate form (1099-R, 1099-B, or 1099-DIV). On the next screen, click “Import” (the exact text will differ for 1099-R, 1099-B, and 1099-DIV).
Next, type “Betterment” in the “Bank, broker, or financial Institution” field, select Betterment, and click “Import” to import your data.
H&R Block is a registered trademark of HRB Innovations, Inc.
Please note that Betterment is not a tax advisor and the information provided should not be construed as tax advice, but should be used for informational purposes only. Please consult a qualified tax professional or the IRS to determine the rules that apply to your individual tax situation.