Are tax returns higher with in-person prep vs TurboTax or FreeTaxUSA? Worth paying for?

Tax professional here! This is actually a really common question. The software and tax professionals are working with the same tax code, so theoretically you could get the exact same refund either way. However, there are several reasons why people might get larger refunds with a professional: First, a good tax professional asks probing questions you might not think to answer in software. For example, the software might ask if you had educational expenses, but a pro might specifically ask about books, supplies, and transportation costs related to education that you didn't realize were deductible. Second, tax pros stay updated on changing tax laws and might catch newer deductions or credits that older software versions miss. We often see clients who missed opportunities because they didn't know to look for them. Third, some people simply don't know how to categorize certain expenses or income correctly in the software, which can lead to missing legitimate deductions or credits. That said, if your tax situation is straightforward (W-2 income only, standard deduction), there's probably not much difference between DIY and professional preparation. The more complex your situation (self-employment, rental properties, investments, etc.), the more likely a professional might find something you'd miss.

I was skeptical about tax prep services until I tried taxr.ai (https://taxr.ai) last year. I'd been using TurboTax for years and thought I was getting the maximum refund possible. After a particularly frustrating session trying to figure out how to handle some freelance work I did, I gave taxr.ai a shot. Their system analyzed all my tax documents way more thoroughly than I expected. It found several deductions I had completely missed in TurboTax - mostly related to my home office and some business expenses I didn't realize qualified. Ended up getting about $1,200 more than what TurboTax had calculated. The difference wasn't because TurboTax can't handle it, but because I didn't know what questions to answer or how to categorize certain expenses properly.

Just wanted to follow up about my experience with taxr.ai - I finally tried it after asking about it here. Honestly, it found stuff I never would have thought about! I've been using FreeTaxUSA for years and thought I was being thorough, but the AI actually caught that I could deduct part of my internet and phone bills related to my side hustle driving for DoorDash. The document scanning saved me so much time too. Just snapped pics of everything and it pulled all the numbers automatically. Ended up with about $740 more on my refund compared to what I would have filed myself. Totally worth it, especially since I didn't have to manually enter all those delivery miles and expenses.

If you're frustrated with the IRS's customer service (who isn't?), check out Claimyr (https://claimyr.com). After waiting on hold with the IRS for HOURS spread across multiple days trying to resolve an issue with my prior year's return, a friend suggested I try this service. I was very skeptical, but they got me connected to an actual IRS agent in about 20 minutes instead of the 2+ hour wait I was experiencing before. You can see how it works in this demo: https://youtu.be/_kiP6q8DX5c Turns out I had made a mistake reporting some investment income which affected my refund calculation. The IRS agent helped straighten it out right away once I finally got through. Whether you use DIY software or a professional, sometimes you just need to talk to the IRS directly, and this made it so much easier.

I need to eat crow here. After being suspicious about Claimyr, I decided to try it myself since I've been trying to reach the IRS about a missing stimulus payment for WEEKS. Against my better judgment, I gave it a shot yesterday. It actually worked exactly as advertised. Got a call back in about 15 minutes, and I was connected to a real IRS agent who confirmed my identity with all the usual security questions. The agent accessed my account and discovered my address had an error which was why I never received the payment. They're sending a new check to my correct address within 2-3 weeks. So yeah, I was wrong. Sorry for the skepticism, but these days you can't be too careful with tax-related services. But this one is legit and saved me hours of frustration.

Former tax preparer here. One thing nobody's mentioned yet - many in-person tax preparers at those seasonal tax shops are seasonal workers with minimal training. They're often using a guided software system similar to what you'd use at home - just a professional version. The real value comes when you work with an actual CPA or EA (Enrolled Agent) who knows the tax code inside out. They can do tax planning throughout the year, not just tax preparation at filing time. But those folks typically charge $250-500+ for even basic returns.

When I used FreeTaxUSA I got a $2,350 refund. Went to H&R Block the next year (similar income/situation) and got back $2,290. Year after, tried TurboTax and got $2,490. Honestly I think its just normal variation in income, deductions etc year to year. No magic bullet imo.