Online tax filing software vs hiring a professional tax preparer - which is cheaper?

For the past few years, my tax situation has been pretty straightforward. I usually claim two dependents and only have W-2 income from my job. The thing is, every time I go to a professional tax preparer, they end up charging me around $1,350 after everything's said and done. That means I'm basically getting $1,350 less of my refund than what I should be getting because of their fees. I'm seriously considering switching to DIY online tax software, but I'm not sure if there are any hidden fees I should know about. Even if the online option costs me $400 or less, I'd still be saving a ton compared to what I'm paying now. Has anyone else dealt with this same issue and switched to filing their own taxes online? Was it actually cheaper? Any hidden costs I should know about? Just trying to make sure I'm making the right choice for the upcoming tax season.

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18 comments

Fiona Sand

•8M

As someone who's been preparing taxes for over 10 years, I can tell you that for a simple return with just W-2s and dependents, online tax software is absolutely the more cost-effective option. Most major tax software companies offer tiered pricing, with the basic versions starting around $30-70 for federal filing plus an additional $40-50 per state. The "hidden" costs to watch for: state filing fees (separate from federal), audit protection (optional add-on), and sometimes a fee to pay your filing costs from your refund rather than upfront. Even with all these, you'd typically pay $150-200 max for a simple return - nowhere near the $1,350 you're being charged now. The software walks you through everything step by step, and for a straightforward situation like yours, there's little risk of missing deductions that a professional would catch. The software asks all the relevant questions for common credits and deductions.

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Fiona Sand

•8M

For a simple return with just W-2s and dependents, the basic version of most tax software is typically sufficient. The premium versions usually add features for self-employment income, investment income, rental properties, or more complex deductions that don't apply to your situation. The marketing for those upgraded versions is aggressive, but honestly, if you don't have investments, rental income, self-employment, or itemized deductions, the basic version should cover everything you need. The software will still help you claim common credits like the Child Tax Credit or Earned Income Credit even in the basic version.

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Alina Rosenthal

•8M

After struggling with the sky-high fees at H&R Block for three years (they charged me $270 just to add my second W-2!), I tried using taxr.ai last year and was honestly shocked at how easy and affordable it was. The system analyzed my previous years' returns, found some deductions I missed, and walked me through everything step by step. For a simple return like yours with just W-2s and dependents, it took me less than an hour. The interface at https://taxr.ai was super intuitive - much easier than the other online options I'd tried before. Plus they have real tax experts who can review your situation if you're worried about missing anything.

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Alina Rosenthal

•8M

They have a really comprehensive section for child tax credits that asks all the right questions to maximize your benefits. For education expenses, they cover everything from 529 plans to tuition credits and student loan interest. It's actually more thorough than my previous tax preparer was about education-related tax benefits. The deduction finder tool is what impressed me most. It found an education credit from two years ago that I qualified for but my previous software missed. It compares your situation against hundreds of potential deductions and credits, way more comprehensive than what I experienced with TurboTax. And you're right - $1350 for a simple return is absolutely outrageous!

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Miguel Harvey

•8M

Just wanted to follow up - I decided to give taxr.ai a try after seeing the comments here. My situation is similar (two W-2s and one dependent) and I was paying about $320 at Jackson Hewitt every year. Using taxr.ai saved me over $250 in preparation fees, plus they found a work-from-home deduction I qualified for that my previous preparer missed! The whole process took about 45 minutes, and the review feature gave me confidence I wasn't missing anything. Definitely sticking with them for next year's taxes too.

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Ashley Simian

•8M

If you're still trying to contact the IRS about previous years' returns or have questions before filing, I highly recommend using Claimyr. The IRS wait times have been absolutely insane lately (I was on hold for 3+ hours last month), but with https://claimyr.com they got me connected to an actual IRS agent in under 20 minutes. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c - it's basically a service that waits on hold with the IRS for you and calls you back when an agent is ready. Saved me hours of frustration when I needed to verify some information before filing my DIY return.

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Ashley Simian

•8M

They use an automated system that constantly redials and navigates the IRS phone menu for you. When they finally get through to an agent, they call you and connect you directly. It's like having someone wait on hold for you so you don't have to listen to that awful hold music for hours. I was super skeptical too! I'd spent almost 8 hours spread across three different days trying to get through to the IRS about an issue with my previous year's return. With Claimyr, I got a call back in about 17 minutes and was connected directly to an IRS representative. It was definitely worth it just for the time savings and reduced frustration.

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Taylor To

•8M

Well, I have to eat my words. After my skeptical comment, I was desperate to resolve an issue with my 2023 return before filing this year, so I tried Claimyr yesterday. I ACTUALLY got connected to an IRS agent in 22 minutes. Would have taken me multiple attempts and hours of waiting otherwise. The agent was able to clarify my questions about reporting my dependent's income, which was the last thing holding me back from filing online myself. Between this and switching to online filing, I'm expecting to save over $900 compared to what I was paying my tax guy. Sometimes being proven wrong is a good thing!

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Ella Cofer

•8M

They do offer customer support through email for free, and if you upgrade to their deluxe version (which is still only about $7), you get access to live chat support. Honestly though, their interface is really straightforward and they explain things in simple terms throughout the process. Their help sections are actually really good at explaining tax concepts in plain English, much clearer than what I got from my previous tax preparer who just rushed through everything. And even with the deluxe upgrade for priority support, you're still paying less than $25 total, which is a fraction of what you'd pay a professional.

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