Tax question--should I go through an accountant or software?

[tjdee]

Poll question: Tax question--should I go through an accountant or software?

My tax info is pretty straightforward, don't own a house, single, etc.
Anything to be said for an accountant, as in the past I've done it through TaxAct and other software?

[Misunderestimator]

1. If you aren't itemizing and it's that straightforward, SOFTWARE for sure.

Mine is a bit complicated, and I use turbotax online.

[benny05]

2. We are Turbotax users

It works well for state taxes too. We've been using it for 4 years and it's pretty easy to use.

[LynzM]

3. We ususally do it online

This year, with having moved, we had to file two partial-year state returns, so we had to buy the software (which is silly, because you still download the state returns!) My husband starts work out-of-state next week, which means that next year, things will get interesting. But I've always found the software easy to use, and walks us through deductions for school, childcare, renting, etc., etc. Hopefully it works as well for you!

[Aiptasia]

4. Depends

On what you do and whether you plan to itemize your deductions or not. If you've got a simple income that pays in fica and state taxes out of your paycheck, and your employer has given you your earnings statement (W-2) form, you'd probably be better off just using a pencil and filling out a 1040-EZ form. It's one page long and will take you about 15-30 minutes to fill out. You can pick up tax forms from the IRS or any local library at this time of year. It'll save you about $49.99 in tax software.

Or,

Spend the money on Turbo Tax or any other top tax software. Many of them have e-file options or they'll print out your state and federal forms automatically for you.

If you are going to make complicated itemized deductions, depending on your line of work, i'd either go with tax software or an accounting firm to do your taxes. For example, I work as a realtor, which is technically working as a sub-contractor. I have to pay quarterly estimated taxes due to the fact I don't pay any taxes out of my commission checks. I save every recipt throughout the year and itemize a few hundred recipts for things such as printer ink, equipment upgrades, gas, mileage, expenses, etc.

Therefore, my tax needs require the help of an accountant. If you do use an accountant, try to find one that is also a tax attorney. That way, if you are ever audited, they should be able to represent you during the audit process.