It’s basically the same program as the IRS free file (linked to in the article), and is still under the IRS blanket. It’s just another option if you want to get help from someone face-to-face with filing your taxes.

I’m not a big account, and it isn’t worth the time of the accountant to take care with my account. They’re not going to find any magic savings because there isn’t any magic savings. I take the standard deduction and make sure I qualify for the Savers credit. But it isn’t that hard, and if I go to an expert I’m still going to take the standard deduction.

I agree with the poster who said you’ll know it better if you do it yourself. I know exactly where my marginal rate is 15%, where it jumps to 22.5%, and where it falls back to 15%. I know where the Savers credit falls. Basically, I know before the year ever starts how much money I intend to “make” after pre-tax retirement contributions and I make things come out right.

Do I wish taxes were simpler? Yes. Sure. Tax preparers don’t “make” anything. They don’t actually create wealth. If the tax system were simpler, they could do something useful that contributes to the wealth of us all.

If my financial situation ever becomes more complex, such as if I buy a house, then I’ll probably start working through a CPA.

He charges more in the range of $600-800, but my husband and I have self-employment incomes, rentals, and have moved between states. When we got married I asked the CPA to do our joint taxes, and he looked over my husband’s taxes from previous years (he used software). He found major mistakes in how the software processed the taxes, and we are lucky now it’s been enough time that we won’t be audited on those years. He was significantly underpaying his taxes, so now we rely on the CPA. He also guarantees his work, so if we are audited due to his error, he covers a portion of the penalty (my mom also uses him and this happened to her).

The other benefit is that I can email him and ask questions throughout the year. If I wasn’t a student, my husband wasn’t working, and we didn’t have a toddler, I might consider doing them on my own. For now I value what I am getting for my money and my time.

I’ve been buying a $40 Turbo Tax for several years but, thanks to this blog, have just learned I can do it free directly with the IRS.

Too late for this year, but will definitely save that $40 next year.

Anyway, a good test, as some mentioned is to do your own taxes and see how they compare to a professional. If the professional is not doing anything you can’t do, then definitely drop them. But it wouldn’t hurt to get that second opinion once in a blue moon. You may be surprised.

Finally, I do live in an expensive state and probably most of our fee is for the complex state tax returns. BUT, I find it hard to imagine anyone getting any quality at $100. UGH! Be careful what you pay for. I am not sure the average tax return preparer knows much more than average. Most of our new business these days is cleaning up messes left by other tax preparers – it has been really bad lately. I know it’s rough because you rely on a professional to make sense of the tax maze, and it’s really hard to guage if they know what they are doing. I do not envy the consumer. I appreciate that I am do my own tax returns. Phew!

I am not an accountant. I am also not an electrician, plumber or roofer. I believe in leaving these things to the experts.

The couple of hundred dollars my CPA charges me to prepare my returns frees my time to do the things I am good at. Most importantly, it gives me peace of mind.

Like the commercial says, it’s priceless.

I know these are starting averages but living in the Philly suburbs these seem low. I started having my taxes done professionally in 2003 thru 2008 and never paid less than $300 at HR Block. One CPA wanted $500+. HR block charges you a basic amount then adds on additional money for each form. Now I also had 2 states but since 2009 I’ve done my own with the HR block deluxe which includes 1 state (which I buy on amazon for about $20 each year, goldbox deal early jan). Our taxes are pretty basic with w2s, schedule a, and interest forms, but I read through all the questions and have learned a lot about the convoluted tax code. Plus I also read tax articles regularly to make sure I’m not missing any deductions, which is hard to do anyway with the tax software. It took me 6 hours to do fed, 2 states, and local, so I guess it is also depends on how much your time is worth to you.

If it helps, a tax return generally has all of the information you or a CPA would need to be able to prepare the following year’s tax return, even if you choose not to use the same software.

However, depending on your particular return, it can be a little tricky knowing what information should be carried forward from your prior return onto the current return. As you indicated, you normally don’t have to worry about this if you always use the same software.

I’m fine using it for now, but if my life becomes more complicated I think I’ll switch to a CPA.

I will say that when I volunteered to do taxes for lower income people, we saw a lot of returns that were very questionable. Some preparers have just taken a course and aren’t necessarily that knowledgeable or careful. Also, a model based on the percentage of your refund might have the wrong incentives for some preparers. Maximizing a refund is well and good but it’s your return and if there are problems you are the one on the hook.

It’s not cheap, but the peace of mind is well worth the price in our mind.