We went through this exact same evaluation process last year with our firm of about 400 returns. After testing several alternatives to ProSystem fx Engagement, we ended up going with a hybrid approach that's worked really well for us. We switched to Drake Tax Software for the actual tax preparation (much more affordable and surprisingly robust) and paired it with SmartVault for document management. The total cost savings was about 40% compared to our ProSystem fx setup, and honestly the Drake software is more intuitive than ProSystem ever was. The key was not trying to find one system that does everything ProSystem fx Engagement does, but rather finding specialized tools that do each function better. For workpapers and review notes, we use a combination of Excel templates and SmartVault's annotation features. It took some adjustment, but our team actually prefers the new workflow now. One tip: if you do switch, plan to start the transition in May/June so you have the full off-season to get comfortable with the new system. We did a parallel run with about 50 clients to work out the kinks before committing fully.

We made the switch from ProSystem fx Engagement to Lacerte last year and it's been a solid choice for our firm. The interface is more modern and intuitive than ProSystem, and the diagnostics are actually better - they catch errors that ProSystem would sometimes miss. What really sold us was the integration with QuickBooks for our business clients. Since many of our small business clients use QB, being able to import their data directly into Lacerte saves hours of manual entry. The e-filing is rock solid too - we've had zero rejected returns due to software issues. The learning curve was manageable - took our preparers about 2-3 weeks to feel comfortable, and by mid-season they were actually faster than they'd been with ProSystem. Lacerte's customer support is also night and day better than what we dealt with at CCH. Cost-wise, we're saving about 25% annually compared to our ProSystem fx setup. Not as dramatic as some of the hybrid approaches mentioned here, but the single-system simplicity was worth it for us. If you want to stick with a comprehensive solution rather than mixing multiple tools, Lacerte is definitely worth a demo.

Wait I'm confused about something. If I'm a substitute teacher working directly for a school district, wouldn't I be a W-2 employee not a 1099 contractor? I subbed last year and got a W-2.

Great question! As others have mentioned, you should receive a 1099-NEC from the learning center if they paid you $600 or more. But here's something important to keep in mind - the classification itself matters a lot. If the learning center was controlling your schedule, providing lesson plans, telling you exactly how to teach, or treating you like other employees, you might have been misclassified. True independent contractors have more control over how they do their work. This is especially common in education where companies try to avoid paying employment taxes and benefits. If you believe you were misclassified, you can file Form SS-8 with the IRS to get an official determination, or Form 8919 when you file your taxes to pay only the employee portion of Social Security and Medicare taxes instead of the full self-employment tax. This could save you money since self-employment tax is about 15.3% versus 7.65% for employees (the employer pays the other half). Just something to consider as you're navigating this for the first time!

I went through this exact situation last year. Got assigned a Taxpayer Advocate in March after waiting 13 months, and it took another 8 weeks before I saw any real movement. The advocate actually called me around week 5 to update me that they had identified the issue (some coding error on the IRS side) and were working to resolve it. Don't give up hope - 3 weeks is still early in the process. The advocate system really does work, it just moves at government speed unfortunately. Try to get the direct phone number for your specific advocate if you don't already have it, makes follow-up much easier.

I'm currently dealing with something similar - been assigned a Taxpayer Advocate for about 5 weeks now after waiting over a year for my refund. From my experience so far, they seem to work in phases. First few weeks they're gathering all your documentation and reviewing the case, then they start reaching out to the IRS departments that are causing the holdup. My advocate told me upfront it could take 30-90 days depending on the complexity of the issue. I know the waiting is absolutely maddening when you've already been patient for so long, but hang in there! The fact that they accepted your case means there's a real issue they can help resolve. Try calling your advocate's direct line if you have it - mine has been pretty good about returning calls within 2-3 business days.

5 I'm gonna go against the grain here. I've used both TurboTax and a CPA, and ended up going back to TurboTax. The CPA I worked with charged $400 and didn't find anything additional that TurboTax hadn't already identified for my situation. TurboTax actually has improved a lot with their interview process for education credits and dependent benefits. If you take your time and answer every question thoroughly, you might be surprised how comprehensive it is. The Premier version has handled my W2s, college tuition, HSA, and childcare expenses without issues.

I've been going through this same decision process! After reading all these responses, I'm leaning toward trying a CPA for the first time this year. My situation sounds similar to yours - W2s, one dependent, education expenses, and an HSA. What's really caught my attention from this thread is how many people mention that CPAs ask questions that software doesn't prompt for. I've always wondered if I'm missing something with the education credits especially, since the rules seem to change and there are different types (American Opportunity vs Lifetime Learning). Has anyone here worked with a CPA who does a consultation first before you commit to having them prepare your full return? I'd love to get a sense of whether they think they could find additional savings before paying for the full service.

Did the court specifically classify the additional amount as "punitive damages" or as "statutory damages"? This can make a difference for tax purposes sometimes. Statutory damages might be treated differently than punitive damages in certain cases.

One thing to also keep in mind is timing for next year's filing - since you won the case in 2025, you'll need to report the taxable portion (that extra $1,600) on your 2025 tax return that you'll file in early 2026. Don't try to amend your 2024 return or anything like that. Also, if this was a significant amount relative to your usual income, you might want to consider making an estimated tax payment for Q1 2026 to avoid any underpayment penalties. The IRS generally expects you to pay taxes on income as you receive it, not just when you file your return. Keep all your court documents, the original lease showing the deposit amount, and any correspondence with the landlord. These will be important if the IRS ever has questions about how you determined what portion was taxable vs. just a return of your own funds.