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Tax time is here, and as such, you may be wondering if you should shell out hundreds of dollars or more to have a professional file your taxes for you. After all, there are several resources online and some of those resources are free.
The complexities of the U.S. tax code may make it difficult to navigate, though. And if you file your own taxesand make a mistake, you could face penalties.
So, is it worth it to file your own taxes or should you consider reaching out to a professional?
Get started with e-filing your own taxes now.
Is filing your taxes on your own worth it?
So, is filing your tax return on your own worth it? For most people, the answer is yes. Here’s why:
It can be easy to file your own taxes
You don’t have to understand the complexities of the U.S. tax code to file your own taxes — thanks in large part to tax preparation software solutions. And, these solutions, like TurboTax and TaxSlayer, have helped millions of people successfully file their annual tax returns.
These programs guide you through the tax filing process by asking a series of simple questions to better understand your return. Once you’ve answered the questions, the software does the hard work for you. So, you won’t have to know the ins and outs of the U.S. tax code, making it easy to file your own taxes online.
Find out how easy it is to file your taxes with TurboTax.
You may be able to file for free
Filing your taxes with a tax preparation professional can be costly, but you may be able to file your taxes on your own for free. For example, in the six years leading up to 2023, TurboTax helped more than 70 million Americans file their annual tax returns for free.
And,TurboTax says that around 37% of tax filers qualify to use the company’s free service. If you do have to pay, though, the prices for the service are relatively affordable — ranging from $89 to $169.
You’re guaranteed the best potential return
Some leading online tax preparation solutions will also offer a maximum refund guarantee. For example, the TurboTax guarantee states that “if you get a larger refund or smaller tax due from another tax preparation method, we’ll refund the applicable TurboTax federal and/or state purchase price paid. (TurboTax Online Free Edition customers are entitled to a payment of $30.)”
And, the TaxSlayer guarantee states that “if you are a registered user of TaxSlayer and you receive a larger refund or pay a smaller tax due amount using another tax preparation software product, we’ll refund the applicable purchase price you paid to TaxSlayer.”
How to find the best tax preparation software
One of the best ways to file your tax return on your own is to use good tax preparation software. Here’s what you should look for as you compare your options:
Reputation: It’s usually best to choose a software solution that has a strong reputation among its users. Solutions like TurboTax, TaxSlayer and H&R Block are popular options to consider.Price: In some cases, you may be able to file your taxes for free. If you don’t qualify for a free service, you can compare prices to find your best deal.Capabilities: Some tax prep solutions may be better for personal use while others may be better for companies. Compare the capabilities of each software solution to determine which is best given your unique filing circumstances.
The bottom line
Tax preparation doesn’t have to be difficult. In fact, with today’s software solutions, filing your own tax return can be relatively simple. Compare today’s leading software solutions to file your own taxes.
Joshua Rodriguez is a personal finance and investing writer with a passion for his craft. When he’s not working, he enjoys time with his wife, two kids and two dogs.
