A&W Tax Services

Tax Preparer vs. TurboTax: Should You Do Your Own Taxes?

Tax software like TurboTax works well for many people. For others, a professional catches deductions and avoids mistakes that cost far more than the fee. Here's how to tell which group you're in.

By the Enrolled Agents and CPAs at A&W Tax Services · Updated

When software is usually enough

  • Your income is from W-2 jobs only
  • You take the standard deduction
  • Nothing major changed in your life this year
  • You're comfortable answering detailed tax questions on your own and double-checking the result

When a tax preparer is worth it

  • You're self-employed or do gig, contract or app-based work
  • You own a business, an LLC or an S corp
  • You have rental property, sold a home, or sold stock or crypto
  • You have income, accounts or property in another country
  • You got married, divorced, had a child or started a business this year
  • You're behind on filing or you received an IRS letter

What a preparer does that software doesn't

Software only knows what you tell it. If you don't know a deduction exists — like the home office, vehicle use or health insurance deductions for the self-employed — you may never get to the question. A preparer asks about your situation, spots what's missing and reviews the return before it's filed.

Software also leaves you on your own if the IRS has questions; audit help is often a paid add-on. At A&W Tax Services, audit protection is free on every return we prepare, and our Enrolled Agents can represent you before the IRS if a letter arrives.

Who can represent you before the IRS

Anyone with a preparer tax ID can prepare returns, but only Enrolled Agents, CPAs and attorneys have unlimited rights to represent you before the IRS in audits, collections and appeals. Enrolled Agents are licensed by the IRS itself and specialize in taxation.

Red flags when choosing a preparer

  • They won't sign the return or include their preparer tax ID
  • Their fee is a percentage of your refund
  • They want your refund deposited into their bank account
  • They promise a bigger refund than other preparers before seeing your documents
  • They ask you to sign a blank or incomplete return