It’s common to wonder whether you should use tax software or hire an accountant to do your taxes. In this article, we’ll give you the information you need to make a decision.
Those who want to do their own tax work tend to choose tax software to get it done. This is the more affordable option, and for people with simple tax situations, it can work well.
The advantages of using tax preparation software include:
There are disadvantages to using such software, though. These include:
If you don’t feel comfortable filling your taxes on your own, you can always hire an accountant. These professionals are trained to handle any unique tax problem that may arise, and are knowledgeable in areas where you may not be.
You may want to have an accountant handle your taxes if you:
Which is Better?
Which option is better depends on your unique situation. But, in general, tax software should be your second choice. Software does not have the insight that an accountant does, and while there’s nothing wrong with using it, hiring an accountant should always be your first option.
Accountants provide a personal, hands-on approach that can be a major help to those unfamiliar with the tax process. At the end of the day, software is software and it is rigidly templated.
While software may call for a smaller upfront cost, there will also be a smaller return. When you hire an accountant, you will pay a larger upfront cost and see a larger return.