What are some factors I should consider when choosing between a CPA and tax software?

Question

Its my first time filing taxes on my own and I need to decide between using some tax software like TurboTax or hiring an accountant. What are some factors I should consider when making this decision?

Answer 1

This is a cost-to-benefit decision.

1) First, determine how long it would take you to complete the tax return and whether any earnings are being lost against that time.

2) Second, find out how much it would cost you to hire a tax professional.

If the cost of doing them yourself exceed the benefits, then a tax professional should be consulted. One suggestion is to see a tax professional your first tax reporting year and use that return as a guide for future years. Check if you qualify for free tax preparation at a local VITA center.

Other items that should be considered when going to a tax professional are:

1) Qualifications,

2) Experience,

3) Reputation,

4) Service standards

Some benefits of doing them yourself are:

1) Control over processing

2) Prepared at your leisure

3) Educational value

Which ever route selected, remember to always keep good records for as long as possible.