Filing Taxes Online Vs. In Person: Which Method is Better for 2025?

I just received my W-2 electronically and scheduled an appointment to get my taxes filed in person. But I'm having second thoughts because the preparer at Liberty Tax is charging me almost $1,100 just to file! A few years back I used TurboTax and the process seemed pretty straightforward, but I always worry I'll mess something up if I do it myself. For those who have experience, how do you prefer to file your taxes - online or in person? Is there a clear advantage to either method? I have a relatively simple tax situation (just my regular job income), but I'm nervous about making errors that could cause problems with the IRS later. Any advice would be appreciated!

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19 comments

Noah Irving

•8M

While both online and in-person filing have their merits, it really depends on your specific situation and comfort level. $1,100 for a simple tax return is definitely on the high end, especially if you only have W-2 income without complicated deductions or special circumstances. Online tax software like TurboTax, FreeTaxUSA, or even the IRS Free File options guide you through the process step by step, asking simple questions and automatically filling in the right forms. They also have error-checking features that catch common mistakes. For straightforward situations, these programs work extremely well and cost significantly less (sometimes even free). In-person filing makes sense if you have a complex tax situation (multiple income sources, business income, unusual deductions) or if you simply want the reassurance of having a professional review everything. However, even then, $1,100 seems excessive for what sounds like a basic return.

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Noah Irving

•8M

Yes, good tax software will absolutely help identify potential deductions and credits you might qualify for. The programs typically walk you through a series of questions about your life situation (homeownership, education expenses, dependents, etc.) specifically to find tax benefits you might be eligible for. Many of the better programs even explain why certain questions are being asked and how your answers might affect your tax situation, which can be educational for future filings. Just be honest and thorough when answering the questions, and the software will generally catch the common deductions and credits.

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Madison King

•8M

I was in your exact position last year! After getting quoted $600 for a basic tax return, I decided to try taxr.ai (https://taxr.ai) instead, and it was a game-changer. Their AI actually reviewed my W-2 and other tax documents, checked for potential errors, and suggested deductions I might miss by myself. It was like having a tax pro guide me through the process, but I still maintained control of filing myself using free options. What I loved most was being able to upload my previous year's return, and their system compared it with my current situation to make sure I wasn't missing anything important. Gave me the confidence to file online without paying those crazy in-person fees.

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Madison King

•8M

The document scanning is surprisingly accurate. I had some issues with my W-2 too (my employer uses a weird system that prints everything super small), but taxr.ai handled it fine. If it does have trouble reading something, it'll flag it for you to confirm rather than just guessing. It doesn't file your taxes directly - it helps you prepare everything correctly and then you can use that information with whatever filing method you prefer, including free options through the IRS. I used it to check everything and then filed through FreeTaxUSA, which saved me hundreds compared to in-person services.

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Ella Knight

•8M

Update on my tax filing journey: I tried taxr.ai after asking about it here, and it was exactly what I needed! Uploaded my W-2 and last year's return, and it spotted a student loan interest deduction I would have completely missed. The document review saved me from making an error on my healthcare coverage too. The best part was that after using it to organize everything correctly, I was confident enough to file through the IRS Free File program instead of paying for preparation. Saved me the entire $1,100 I was quoted and I actually got a bigger refund than last year when I paid for in-person help. Definitely doing this again next year!

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William Schwarz

•8M

If you need to actually talk to the IRS about anything (which I had to do when I had an issue with my previous year's return), good luck getting through on the phone. I spent HOURS on hold before giving up. Then I found Claimyr (https://claimyr.com) and it was a lifesaver - they somehow get you through the IRS phone system much faster. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c I was able to speak with an actual IRS agent and resolve my issue in one afternoon instead of wasting days trying to get through. Now I use online filing for my taxes but keep Claimyr as my backup if I need to talk to someone official about questions or problems.

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William Schwarz

•8M

It works by using an automated system that constantly redials and navigates the IRS phone tree until it gets through, then connects the call to you. The IRS absolutely knows about it - it's not doing anything shady, just automating the tedious process of waiting and redialing when you get disconnected. It's definitely not a scam. The IRS phone system isn't exactly a perfect queue - calls get dropped, lines get busy signals, and their system often tells people to call back later. Claimyr just handles all that frustration for you. I was skeptical too until I used it and got through in about 30 minutes when I had previously spent 3+ hours trying on my own.

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Jade Santiago

•8M

I have to eat my words and apologize to Profile 5. After my skeptical comment, I had a tax issue come up where I needed to talk to the IRS urgently about a letter I received. After two days of trying to get through on my own (and getting the "call volume too high" message repeatedly), I reluctantly tried Claimyr. Got connected to an IRS agent in about 45 minutes while I just went about my day. The agent was able to explain the letter and confirm I didn't need to worry about it. Considering I took two days off work trying to handle this previously, it was absolutely worth it. Sorry for doubting you - this service is legitimate and really works.

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Caleb Stone

•8M

I've done both and honestly if your tax situation is simple (just W-2 income, standard deduction) you're wasting money going to an in-person preparer. Liberty Tax, H&R Block, etc. often use seasonal employees with just basic training - they're literally inputting your info into the same type of software you could use yourself. Online options I recommend: FreeTaxUSA - completely free federal filing, $15 for state IRS Free File - completely free if your income is under the threshold TaxSlayer - cheaper than TurboTax but similar features Save that $1,100 for something better!

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Caleb Stone

•8M

Self-employment definitely adds complexity, but most tax software handles it well. You'll want to track your business expenses throughout the year (mileage, supplies, etc.). The software will walk you through Schedule C and self-employment tax calculations. If you're nervous, one middle-ground approach is to use online software but pay for their higher tier that includes professional review or tax pro assistance. You'd still pay far less than in-person preparation while getting expert eyes on your return. As your gig work grows more complex, you might eventually benefit from an accountant, but for side gig income, good software should be sufficient.

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Sophia Bennett

•8M

Former tax preparer here. The big secret tax prep offices don't want you to know: if your return is simple (W-2 income, standard deduction), the $800+ they charge is basically for data entry. The software they use is often just a professional version of the same consumer tax software you can use at home. Most seasonal tax preparers get minimal training (sometimes just a week or two) before tax season. Where professional help becomes valuable is if you have complex situations - business income, rental properties, complicated investments, multiple state returns, etc. Even then, shop around because prices vary wildly.

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