Best Tax Software for New Accounting Grads - Do I Need a PTIN to Prepare Family Taxes?

Does this mean I need a PTIN even if I just help my parents with their taxes? I usually just go over to their house, use their computer and TurboTax, and guide them through it. I don't charge them or anything.

No, you don't need a PTIN in that scenario. The key distinction is whether you're the one preparing and filing the return. If you're just helping your parents navigate TurboTax while they input their own information and file themselves, that's considered tax assistance, not preparation. For the original poster though, it sounds like they'll be the one actually preparing the returns in exchange for services, which does fall under the requirement for a PTIN, even if the compensation is non-monetary like massages or babysitting.

How does it handle things like rental properties? My mom has a couple rental units and her taxes are always a nightmare. Does it actually give specific advice or just general feedback?

Sounds interesting but can it actually find deductions that professional software wouldn't? I'm skeptical that an AI tool could outperform something like ProSeries or Drake that have been around forever.

It's actually really good with rental properties - you upload the documentation and it helps identify all the applicable deductions like depreciation, maintenance expenses, property taxes, etc. It even flags when something might be a repair versus a capital improvement, which has different tax implications. For your question about comparing to professional software, it's not meant to replace those programs - it works alongside them. Professional software gives you forms to fill out, but taxr.ai helps review your work and documents to catch things you might have missed or entered incorrectly. I've found it catches human errors that the software validation doesn't always pick up.

How does this actually work? I've literally never been able to get through to the IRS. Do they just keep calling for you or something?

This sounds like BS honestly. The IRS phone system is deliberately impossible to navigate. No way some service magically gets you through when millions of people can't get answers. Probably just charges you and then you still wait forever.

They use a system that navigates the IRS phone tree and waits on hold for you. When they reach a human agent, you get a call connecting you directly. It's basically like having someone wait in line for you at the DMV - when they get to the front, they call you over. It's definitely real - I was skeptical too until I needed help with a CP2000 notice and was getting nowhere. The IRS system is deliberately difficult, that's why this service exists. They just make it work so you don't have to waste your day on hold. When I used it, I got connected to an agent in about 25 minutes when I had already spent over an hour getting nowhere on my own.

Thanks for mentioning the Form 8879! I completely forgot about that requirement from my tax classes. Do you have any recommendations for good record-keeping systems? Are you using something digital or just physical folders?

I use a combination of both actually. I keep physical folders with hard copies of all documents (W-2s, 1099s, receipts, signed 8879 forms, etc). But I also scan everything into a secure cloud storage system and organize it by tax year and client name. I also keep a simple spreadsheet log of all the returns I prepare with dates, basic info (no SSNs or financial details), and notes about any unusual situations or questions that came up. It's helped me a few times when someone came back months later with questions and I could quickly refresh my memory about their situation.

I used TaxSlayer Pro last year and it was decent for basic returns but struggled with some business stuff. If you're doing Schedule C, rental properties, etc. I'd say go with Drake instead. And YES get them to sign something! I made a simple one-page letter stating they provided all info and reviewed the return before filing.

Thanks, that's really helpful! I think I'll invest in Drake then since I know my cousin's business return will be complicated. Good call on the liability letter too - I hadn't thought about that but it makes total sense to protect myself.