Tax Software Vs. An Accountant: Which Is Right For You?

Lets say it like this...

"Which food is better "A" or "B"

"A" has all this awesome stuff in it and tastes really good.
"B" has all that stuff in it, and tastes yummy.

If you like "A" then you should buy "A" if it's what's right for you;
but if you like "B" then just buy "B" because you'll like it.

-that's basically what the above article says. fail.

I used a CPA once thinking that she would find deductions that I couldn't and that she would give me valuable advice about future tax avoidance. She charged a large fee, but when I checked the return, she missed a number of large, obvious deductions. I took the returns back to her and she agreed that she missed the deductions. I realize that one of her subordinates in her office actually did the returns, but what value did she provide? I concluded that I was small potatoes to her financially and that I didn't merit her personal attention. I haven't used a CPA since.

Should have had a few sample returns done using all methods and made a comparison for all of us to see.

Used an accountant for 12 years at an average cost of $300. Decided to go on the cheap and got Turbo Tax for $50 and did it myself. About 9 months later I got the audit notice and consequently paid approximately $1800. Sure glad I saved that $250.....

As a tax preparer I find the question very easy. If all you have is a W2 and or some interest income there is nothing practicle I or any preparer can do to reduce your taxes for 98% of the public because you do not have the income to get into specilized financial products to reduce your taxes. However in no way shape or form would I recomend doing your taxes online with any of the so called "free" services. Read the fine print they collect and sell data about you, not selling you and your income directly but in ranges for marketers to buy. You also have to pay for the state no matter what. Get a $2.00 calculator if you cannot add and do it by hand or purchase software but nothing is ever truely free. And in reality by the time you buy software and work the program at least 2 hours it will cost you about the same as I charge for a basic return to start with. Many preparers will let you mail or drop off simple returns and they do them when they need a break from hard one or get on Yahoo :)

I haven't used an accountant for over 20 years. The last time I hired a CPA, he screwed up my returns 3 years in a row. This stuff, for most people, isn't rocket science. It's even easier with good software. If you can keep track of your money in general, you can do your own taxes, and anyone who says otherwise, probably is just trying to get your business.

I always use an accountant but this is the last year. I had him do my taxes and for sh!tz ond giggles I created an account in Turbo tax and did my taxes online. I was about 50 dollars short on my tax return compared to his return but that would be made up by his $290 fee. If you have the confidence then use the online. I will and I will save my self 200 in the process.

so, basically... this article answers zero questions on which is best. Just points out the common sense logic on which service offers what.
Total waste of time.

Turbo tax has hundreds of CPA working for them, your CPA has, on wait, just himself...

I think the entire article can be summed up in the following:
Software or do it yourself...is the best way to go for most people.
But if you have complicated assets, incomes, expenditures, then get a CPA.

A CPA only has to take one semester of tax class. Someone who will do your taxes; can explain to the IRS why the taxes were done the way they were; is called an EA. An 'enrolled agent' is trained and tested by the IRS. They know all the ins-and-outs.

As a CPA, I will tell you that most of the people I know (even those that itemize) do not need the services of a tax preparer - one employer, minimal investments and not a lot else going on. You can EASILY do your own taxes, and it's not like the tax code changes based on whether or not you hire a paid preparer. However, if your finances are complicated, an EDUCATED tax preparer (CPA or not) is worth the investment.

Have you ever tried just doing it yourself? Set up a linking Excel spreadsheet, and read the instructions carefully.

It's a lot cheaper that way.

90% of the people can easily do their own taxes correctly with TurboTax or a like product. It is fear and laziness that drives many to have their taxes 'professionally' prepared. Note: most of the advertised tax services do not use degreed accountants, much less CPAs. For the average person having taxes done, an EA is more than enough, and far less expensive than a CPA.

Those who have a business and rental properties better off using CPA Accountant. Other than that use tax software is cheaper.

There are really 3 options: (a) Doing it manually with pen and paper and trying to make ANY sense of the IRS instructions. (b) Computer software like TurboTax and (c) a professional: CPA or tax preparer. Except for those able to use 1040EZ option (a) is just too dangerous.

I used Turbo Tax successfully for years but I had a growing number of K-1s and royalty income that TT just didn't do easily. A CPA is better able to deal with planning issues on a "what if" basis before the 12/31 deadline. We can put together a pro forma based on differing tax strategies prior to 12/31. I have used a CPA for the last 2 years and know I saved the fee in more intelligent planning.

I will pay taxes again when the government balances the budget.

I have a hard time believing in the statement about the cost of the CPA's software. How many millions of dollars has HR block and Turbo Tax put into research and making sure their tax software is up-to-current code and who knows about Tax Act, etc... All I know is that my CPA kept missing stuff (and not because of lack of documentation from me) so I have used HR software last 3 years.

My father and brother and I do accounting and Income taxes, we are not CPA's, but they don't know more than we do, and we charge MUCH LESS, if you take your taxes to a CPA, the chances are he never touches the return, someone in his office does all the work, and he just signs it..... We don't take a few weeks to get them done... And the cheap tax software the consumer can buy, well it doesn't put the right information in the right place, that is up to you,, and it can cost you plenty to mess it up!!!!!