Former tax preparer here. One thing to consider is that if your parents have been going to the same person for years, that preparer might actually know important details about their financial history that could be relevant. When I had regular clients, I would often remember things like "oh, didn't you sell that property back in 2019? We should check the basis calculation" that they might forget. That said, $500 is definitely on the high end for a simple return. Maybe go with them to their appointment this year and see what the preparer actually does? You might get a better sense of whether they're getting value or being upsold on unnecessary services.

I'm gonna be the devil's advocate here - just let your parents do what makes them comfortable. My mom insisted on paying $350 to Liberty Tax every year even though I showed her how simple her return was. I finally gave up and realized that for her, it wasn't about the money but about the comfort and routine. For that generation, taxes are scary, and the peace of mind is worth the cost. Maybe offer to split the difference - like suggest a cheaper tax service but don't push the completely free DIY option if they're resistant.

I switched from TurboTax to an accountant three years ago and never looked back. Yes, it's more expensive ($375 vs the $120 I paid for TurboTax), but my accountant finds deductions I didn't know existed. She's saved me at least $1500 each year. Just make sure you find someone with good reviews who specializes in your situation (self-employed, rental properties, whatever applies to you).

I was in your exact situation last year. TurboTax said I owed $1850. I panicked and went to H&R Block thinking they'd find some magic deduction. They charged me $220 and I still owed $1750. Barely any difference. If your tax situation is simple, software probably isn't missing much.

Just to offer another perspective here: Your accountant might be partially right about the capital account benefit, but they're missing the bigger picture. When a business assumes a personal debt, it should be recorded as a liability of the business with a corresponding entry to your capital/equity account. What likely happened is that your accountant increased your capital account (correctly) but failed to record the liability on the business books (incorrectly). This artificially inflated your basis. Now when you want to pay off the loan, the business is essentially making a distribution to you because the liability isn't on the books. The proper correction would be to record the liability on the business books now (which would decrease your capital account) but then the debt payment would be a proper business expense, not a distribution. You might need to file Form 3115 to change accounting method rather than amending all previous returns. And yes, the ERC funds would absolutely increase your capital account and available business assets, so your accountant should be including those in the calculations.

I think there's confusion about what your accountant actually did. Based on your description, it sounds like they treated the original loan amount as an owner contribution (increasing your basis/capital account) but never recorded the loan as a business liability. Each payment the business made toward the loan was likely treated as a distribution to you. This isn't necessarily "wrong" from a tax perspective - it's just one way to handle it. The alternative would have been to record the loan as a business liability with no impact on your capital account. Then payments would be business expenses. If the business has been profitable and generating basis, those distributions might have been tax-free. But now that you want to pay it off completely, there could be issues if the distribution exceeds your current basis. I'd suggest getting a copy of the business balance sheet and your capital account statement to see exactly what's been recorded over the years. That would clarify what's actually happening here.

Does anyone know if there's a simple calculator online where I can see exactly how much of my income falls into each tax bracket? I'm trying to figure out if I should contribute more to my 401k to stay in a lower bracket.

Something nobody mentions about tax brackets - they're adjusted for inflation each year! The income thresholds for each bracket typically increase a bit annually. So if your salary just keeps pace with inflation, you shouldn't "bracket creep" into higher rates.

Another thing to consider with 1099 work is that you need to figure out your own health insurance, retirement, and you don't get paid time off or sick days. When comparing offers, factor in what these benefits would cost you. For health insurance, check your state's marketplace. For retirement, look into a SEP IRA or Solo 401k - you can actually save more for retirement as a self-employed person than as an employee. The best part about being a contractor is the tax deductions. Keep track of EVERYTHING related to your work - part of your internet, phone bill, any equipment, software subscriptions, professional development courses, mileage if you drive for work, etc. It all adds up!

Just a heads up - make sure they're classifying you correctly! Some companies try to classify employees as 1099 contractors to avoid paying benefits and employment taxes, but there are specific IRS rules about who can legally be considered a contractor vs. employee. If they control WHEN and HOW you do the work (set hours, at their location, using their equipment, etc.), you might legally be an employee, not a contractor. Worth looking into before accepting the offer.