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Do you prefer software for tax filing or taking it to someone to do it for you?


I'm only 26 so I've only used paper returns since my returns were so easy the first 8 years of filing. However, since getting married and buying a house, I've had to use software to help with my return and have never had anyone else do my taxes. Has anyone switched from one to the other and noticed a significant change in how well the taxes were done? I'm curious if an accountant would find more deductions (or less) than my software. Thanks.

Well you doing the right thing. Doing your own is the way to go. But like you said getting married and buying a house there a lot more things you and software can miss. You can always go to H&R Block and see what they come up with... Just tell them you don't think that is good and you want to go somewhere else. You dont have to pay them if they dont file them for you!

Or you can find someone to audit your taxes to see if everything is good.

If you own a fairly complicated business, a CPA might or might not find a number of additional deductions. But if you just are married and have a house, software should do the same job as a CPA and cost less

I have done tax preparation for 36 years, have two college degrees, plus college computer courses; and, before each tax season I read, study and take tests for three months. For a standard W-2 return I fill out and electronically file a federal and state return for a flat $45.00; using a program that is updated daily as to any IRS changes or modifications. The trouble with off the shelf tax programs is that unless there is an update feature built into them what you are using may be out of date.

If you are married and buying a house you most likely have mortgage interest and property taxes. Be sure and run your return both itemized and standard to see which gives you the highest refund or lowest tax. Don't forget to check Form 5695 for residential energy credits in regards to your home; you get credit for anything that saves energy, doors, windows, insulation, high efficiency appliances, yada. If you want to read about many things taxwise go to IRS.GOV under forms and order a Publication 17; it is gold mine of information. Good luck.

I use TurboTax because if I were to take my taxes to anyone, I have to haul all the junk there anyway. Given that absolutely not one person on the face of the earth understands the tax code (no one has even read it all), I trust the tax software to be sufficiently decent. I don't have anything magical going on. If I were filthy rich, I'd have tax lawyers to find loopholes and such, but there can NOT be that much difference between MY understanding of the question the program asks and that of a CPA or such out there. It's gibberish to us both, I just know it's gibberish. And it is--pretty much each year various money publications and such take the SAME DATA to a bunch of CPAs, etc. and have them do the mythical return. They all end up with different answers, so my point has been validated repeatedly over time: no one can be sure. It's also proven repeatedly that call the IRS and get the wrong answer 25% or more of the time--which is why THEY refuse ALL responsibility for ANYTHING they tell you.
Just do the best you can and pray you don't get drug through the mud because of problems OTHERS created.
Good time to say it again: PEOPLE WAKE UP! Read Steve Forbes on the flat tax. If you love this current mess, you can still file with that under his proposal, but for those of us who are put off by psychotic behaviour and ramblings (IRS tax code) we could use the flat tax.

The average seasonal tax preparer is going to go through a series of questions with you about income, expenses, rental expenses and such in a single interview with you to get your tax forms done. You are going to have to know the information in order for him to claim it, (you paid $22.30 to advertise your rental condo for example) to give it to him. And to know you bought a replacement washer and dryer combo for the rental property...

The average American doesn't just do these things everyday so they'll DON'T forget about it during tax time... besides, you have to keep the records for tax purposes anyway... why not input the info yourself in Turbo Tax, as opposed to paying someone else to do it.
My advise, if you are new to it... then definitely go to have them and have it done .. once. After you get a good baseline, and see how you paid him to basically write down the numbers you gave him, you shouldn't need anymore help for subsequent years.
Good Luck.

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