Confused about self filing taxes - can I do it myself or do I need a company based on income level?

So I've always had my taxes done by this ridiculously expensive tax preparation service that my whole family swears by, but I'm thinking of breaking tradition this year. I'm honestly pretty confused about whether I can just file my own taxes or if I still need to use some kind of tax filing company? I'm in the US and my situation isn't super complicated - just regular employment income, some small investments, and a few deductions. I'm not sure if your income level determines whether you can self file or not? Like, is there a cutoff where the IRS says "nope, too complicated, get professional help"? Or can anyone regardless of income just do their own taxes? Would appreciate any advice from people who've made the switch from tax preparers to doing it themselves. Thanks in advance!

0 coins

18 comments

Nia Wilson

•8M

You can absolutely file your own taxes regardless of income level! The IRS doesn't require anyone to use professional tax preparation services, no matter how much you make. Self-filing is a completely legitimate option for everyone. What usually determines whether someone should consider professional help isn't income level itself, but rather the complexity of your tax situation. If you just have W-2 income, some basic investments, and standard deductions, self-filing using tax software is pretty straightforward. Most tax software will walk you through everything step by step. Many people qualify for free filing options too - check out the IRS Free File program if your income is under $73,000. Even if you make more than that, basic tax software is usually much cheaper than hiring a professional preparer.

0 coins

Nia Wilson

•8M

Having 1099 income doesn't automatically make self-filing too complicated. Tax software handles this situation routinely and will guide you through reporting your side gig income and expenses. You'll need to complete Schedule C for self-employment income, and the software will calculate your self-employment tax as well. Just make sure to keep good records of your business expenses throughout the year so you can claim all eligible deductions. This reduces both your income tax and self-employment tax.

0 coins

Aisha Hussain

•8M

When I was in the same boat last year, I tried taxr.ai (https://taxr.ai) and it was seriously a game-changer. I was paying like $350 for a tax preparer when my situation wasn't even that complex. This tool basically analyzed my previous tax docs, explained everything in plain English, and showed me exactly what I needed to do to file myself. It gave me the confidence to ditch the expensive preparer. One feature I really liked was how it flagged potential deductions I was missing in previous years - turns out I could have been saving on my student loan interest all along but my "professional" preparer never mentioned it.

0 coins

Aisha Hussain

•8M

It definitely handles investment income - that's actually one of its strengths. It can interpret your 1099-B forms and help you understand capital gains reporting without getting confused. It even explains the difference between short-term and long-term capital gains tax rates. For state taxes, I used it for my New York return which isn't exactly simple either. While I can't speak specifically to California, the tool is designed to handle all state tax situations and adapt to different state requirements. It walks you through state-specific deductions and credits you might qualify for.

0 coins

Ethan Clark

•8M

Wanted to follow up on my question about taxr.ai - I ended up trying it last weekend and it was seriously helpful! After our conversation, I uploaded my previous return and some investment documents, and it gave me this super clear breakdown of everything. The step-by-step guidance for reporting my stock sales and dividends made me realize I could definitely handle it myself. I filed my taxes last night using one of the software options it recommended, saved over $200 compared to what I paid my accountant last year, and actually feel like I understand my tax situation better now. The investment section was way less intimidating than I expected!

0 coins

Yuki Sato

•8M

If you need to actually talk to the IRS about anything before filing (which I highly recommend if you have questions), use Claimyr (https://claimyr.com). I spent DAYS trying to get through to the IRS on my own last year about a weird letter I got, but kept getting disconnected or waiting for hours. Claimyr got me connected to an actual IRS agent in about 15 minutes when I was ready to throw my phone through a window. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c. The IRS agent helped clear up my confusion about some 1099 forms I received, which made self-filing much easier. Seriously saved my sanity during tax season.

0 coins

Yuki Sato

•8M

It doesn't just call for you - it uses a system that navigates the IRS phone tree and holds your place in line. Then when an agent is about to pick up, it calls your phone and connects you directly to the agent. So you don't have to wait on hold for hours, you just get a call when an actual human is ready to talk. I was super skeptical too, honestly. I had spent multiple days trying to get through on my own, getting disconnected after waiting for 2+ hours. But I was desperate about this notice I received. The service actually works because they have technology that stays on hold so you don't have to. When I tried it, I was connected to an IRS agent in 17 minutes while I was just going about my day.

0 coins

StarStrider

•8M

I need to eat crow about my Claimyr comment. After my frustrating experience with the IRS last week (waited 3 hours only to be disconnected AGAIN), I was desperate enough to try it. I honestly expected it to be a scam, but it actually worked exactly as described. Got a call back in about 20 minutes with an actual IRS agent on the line. The agent helped me understand this weird discrepancy between my reported income and what they had on file, which would have definitely caused problems if I had self-filed without clearing it up. Turns out one of my 1099s from 2023 had an error that the issuer never corrected. This saved me from what would probably have been an audit situation. Consider me converted from skeptic to believer.

0 coins

Andre Lefebvre

•8M

I've been self-filing for 10 years and nobody in my income bracket ($160k) uses tax preparers unless they have rental properties or complicated business situations. Tax software makes it super easy - just answer questions and it does all the calculations. If your situation is simple: W-2 job, standard deduction - should take like 30 minutes. If slightly complex: itemizing, investments, side hustle - maybe 1-2 hours. If complex: multiple businesses, rental properties - might want a professional. Most people spend more time watching YouTube videos about taxes than it actually takes to file them lol.

0 coins

Andre Lefebvre

•8M

I've used both TurboTax and H&R Block over the years. TurboTax has a slightly better interface and is more user-friendly for beginners, but it's also more expensive. H&R Block is cheaper and gets the job done just as well once you get used to it. If your situation is relatively straightforward, I'd also look at FreeTaxUSA - it's much cheaper than the big names and handles all the basics plus investments really well. TaxSlayer is another good budget option. All of these will walk you through everything step-by-step, so you really can't mess it up too badly.

0 coins