Is it worth it to have a tax preparer vs. Software for me?
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Hello Everyone, I have always done my taxes myself. However, I always hear from friends that they got a larger return by using a preparer. I am single, Claim 2, Income that does not qualify for a free file, have property tax and mortgage interest to claim as well as some student loan interest. Employer 401k. Nothing out of the ordinary. Do Preparers get more for you then software??
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Answer:
It is some times very tempting to approach tax professionals who offer huge refunds without even looking at your tax documents. If you can't believe it, it is better to avoid it as it could be a scam. Some times approaching a tax professional will help you as they may identify some deductions which you might have otherwise overlooked. But, if you are aware of tax laws then a tax software is good enough.
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Other answers
They charge you a fee, but I think if you get the most up to date tax software you could get more deductions.
Tim M
We have always used software & been very pleased with the results. Tax preparers are good at finding unusual deductions but if you don't have unusual circumstances (say, own your own business) the software will guide you to deductions you might not otherwise think of, anyway. Plus, it's cheaper!
maxinestringbean
No, use turbotax.com. It's free if you make under like 50k a year and they walk you through every step & calculate for you. I paid an accountant in the past and it was a waste.
angelfire2707
NO, preparers like H&R Block are using the same software you can purchase or use online! I have used www.taxact.com for the last 8 years and have all my friends and family using it also. I have already filled 4 out for co-workers. If you paperfile it is FREE, if you want to e-file it is only $9.95! I filled mine out on Jan 19 and my refund was deposited into my account on Jan 25. Not Too Bad! Good luck and save the money you would spend with a preparer!
me4tennessee
I've been doing my own taxes for 3 years off of www.taxcut.com and its better to do them yourself. The preparers I went to before use the same software and you paying them to do it and they charge 150-200 dollars when you can do it yourself for free.
Pumpkin
Probably not. If you use one of the popular software programs, and answer the questions carefully, it should produce a tax return with the same result as if it was prepared by a preparer from H&R or Jackson Hewitt, etc.. However, if you get into an unusual situation and/or some large dollar situation, it might be worthwhile to talk to a CPA or Enrolled Agent.
r_kav
My family has used the Tax Cut software for quite a few years. It is very easy to use, and the step-by-step instructions and interview makes the processes very pain-free. I would highly recommend it. The price for the software is much less than that of a preparer, and, depending on which package you buy, you can get professional help for a low price, too. Best of luck!
grounded_firmly
Actually, no. Preparers just get to charge more. I've used Tax Act and Turbo Tax for the last 7 years and I always get more than what I would expect. They have the long form as well in which you can enter all business expense, college tuition, annuities and so forth, property, moving expenses which were not covered by the employer and everything the IRS would do as well. Also there is a 'check up' at the end of each, Fed and State, and if there is a problem, it will raise a red or amber light. If there's a green light, then everything has check out to be correct from the IRS rules. These guys make a ridiculous amount of money and doing this on line, including the Efile with direct deposit which comes in anywhere from 7-16 days max., is very convenient and only cost me $27 for both. So, rather than spend the extra money and give it to someone else to do, I don't have to gather all the receipts and bills and take them out of the house. I just sit here and do it and put them back right away. No time away from home to have to sit in someone else's office and have them asking me a zillion questions that I already have the answers to. That's the way I like it, however, every person has their own preferences. It's just up to the individual.
chole_24
Generally not unless you have more complications than you do. Many net lose after paying fee for "more" refund. By claiming 2 (many fools claim 0) you have correctly cut down your refund. Don't underestimate how much of the return of thier interest free loan to the govt you friends are trumpeting as a refund.
vegas_iwish
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