TurboTax Vs Hiring An Accountant

Tax season is coming again and how you file your taxes is a mixed bag. You can do them yourself, hire an accountant, or use your computer. In this post we’ll compare TurboTax to hiring an accountant.

Keep in mind that it is possible to do your taxes without spending a penny – the forms you need to file your taxes are available for free from the IRS (typically you can find everything you need at your local library), but most Americans spend money using tax software, a tax preparation service, or a local accountant since those are all far easier than trying to do those forms by hand unless you have a very simple tax return to fill out.

TurboTax is an inexpensive option. Depending on the complexity of your return, prices can range anywhere from free (for the federal edition) to over $100 for the business version. Any mistakes are your own but Turbo Tax does offer an audit protection service for $40 (I’ve purchased it every single year since 2003 and sleep better at night knowing I have it).

If you want a body want to sit across from this tax season who you can talk to and ask questions while your taxes are prepared, then you’ll probably want to visit your local account or go to a tax preparation service like H&R Blockk or Jackson Hewitt. While prices vary pretty widely depending on the complexity of your return, expect to spend anywhere from $80-$200. If you have a complex return, it’ll probably run a little more.

If your tax return requires the services and expertise of a CPA (certified public accountant), expect to be spending $400 and up.

Which one is right for you? That really depends on you, your comfort level, and on your situation. The more complex your financial situation, the more important it is to get a real professional.

Personally, I’ve found that using tax software has been suitable for me and I run a small business which means I have fairly complex taxes to file. However, I’m also quite comfortable sitting down at the computer for a few hours and since I use Quickbooks Pro to manage all my finances, it’s easy to export the data I need for taxes.