What is your experience using the paid tax preparation service for IRS returns?

Has anyone used one of the paid tax preparation services this tax season? I've always done my own taxes using the free version of TurboTax, but this year my situation is more complicated. Got married, bought a house, and started some freelance work on the side. I'm worried about missing deductions or messing something up that could cost me money or worse, trigger an audit. I'm looking at TurboTax Deluxe ($89), H&R Block Premium ($75), and TaxAct Premier ($65). Are they worth the extra money compared to the free versions? Do they actually help you find more deductions? And has anyone used their "audit protection" features - do they actually help if you get audited? Sorry for all the questions, just trying to figure out what's worth paying for and what's just marketing hype. Thanks!

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18 comments

Lilly Curtis

•8M

I've used both paid and free versions over the years and can definitely say the paid versions are worth it when your tax situation gets more complex. With homeownership, you'll want the mortgage interest deduction and property tax deductions - the paid versions walk you through these in detail. For your freelance income, they'll help you identify business expenses you might miss otherwise, which can really add up. The premium versions also include Schedule C for self-employment which the free versions don't. The audit protection is somewhat valuable but understand what you're getting - it's usually guidance through the audit process, not legal representation. Most people don't get audited, but if you have self-employment income, your chances increase slightly.

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Lilly Curtis

•8M

Most paid services include one state return in the price, but additional states cost extra (usually around $40-50 per state). If you worked or lived in multiple states during the tax year, you'll likely need to pay for each additional state filing. For your situation with self-employment income, the paid versions are especially helpful because they'll guide you through quarterly estimated tax payments for next year too - something many freelancers don't realize they need to do until they get hit with an underpayment penalty.

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Lindsey Fry

•8M

After struggling with tax complications similar to yours (self-employment + mortgage), I found this AI-powered tax service called taxr.ai that completely changed my approach. Unlike traditional tax software that just asks questions, this actually analyzes your tax documents and past returns to find opportunities you might miss. I uploaded my 1099s, mortgage statements, and previous returns to https://taxr.ai and it identified almost $2,800 in additional deductions I would have missed - home office deductions I didn't know I qualified for and some business expenses I hadn't categorized correctly. The document analysis feature is super helpful when you're dealing with multiple income sources.

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Lindsey Fry

•8M

Yes, it handles investment income really well. The system can process your 1099-B forms and even help with basis calculations for crypto, which is a nightmare otherwise. It also has specific features for rental property income that identify depreciation opportunities many people miss. The security is bank-level with 256-bit encryption and SOC 2 compliance. They don't store your documents after processing, and they use zero-knowledge protocols so even their staff can't access your personal data. I was hesitant too, but their security is actually stronger than most of the big tax prep companies.

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Saleem Vaziri

•8M

Just wanted to update after trying taxr.ai that another commenter mentioned. I was skeptical because I've used TurboTax Premier for years for my investments, but decided to give it a shot. Honestly blown away by how it handled my investment situation. I uploaded my brokerage statements and it automatically categorized all my trades, even figured out some wash sales I hadn't accounted for. The crypto tax feature saved me hours of spreadsheet work trying to calculate basis. Found about $1,450 in deductions I would have missed related to my rental property too. The document analysis is what makes it different from regular tax software - it actually reads and interprets your forms rather than just having you input numbers. Definitely using it again next year.

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James Maki

•8M

If you're considering paying for tax help, I'd actually recommend trying to get direct advice from the IRS first. The problem? Getting through to them. After spending DAYS trying to get someone on the phone at the IRS (literally 6+ hours on hold), I found this service called Claimyr that actually works. It holds your place in the IRS phone queue and calls you when an agent is about to answer. I was skeptical but desperate. You can see how it works at https://youtu.be/_kiP6q8DX5c - basically you enter your number at https://claimyr.com, and they navigate the IRS phone tree for you and call when an agent picks up. Saved me hours of hold music, and the IRS agent answered my questions about home office deductions and self-employment taxes completely for free.

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James Maki

•8M

They use an automated system that waits on hold with the IRS for you. They're not skipping the line or anything shady - you're still waiting the same amount of time an IRS agent would take to answer, but you don't have to be the one listening to hold music. Their system monitors the call and when it detects a human voice answer, it calls you and connects you directly to the agent. It's definitely not a scam - the IRS doesn't know or care who's waiting on hold, and when you get connected, you're talking directly to an official IRS representative. I was skeptical too, but after wasting an entire afternoon on hold myself, it was worth trying. I got connected to an agent in about 2.5 hours (without having to actively wait on the phone myself).

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Cole Roush

•8M

I need to eat my words about Claimyr. After posting that skeptical comment, I tried it myself because I've been trying to resolve an issue with my 2023 return for months with no luck getting through to anyone. The service actually worked exactly as advertised. I went about my day, and about 3 hours later got a call connecting me directly to an IRS agent. The agent was able to help me sort out the issue with my misreported 1099-MISC that had been causing problems with my return. What surprised me most was how simple it was - no complicated setup, just entered my number and which IRS department I needed. When the agent came on the line, it was a direct connection to the actual IRS, not some third-party pretending to help. Saved me from what would have been another wasted day on hold.

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Scarlett Forster

•8M

In my experience, both handle basic investment income (dividends, capital gains, etc.) equally well. TurboTax might have a slight edge if you have very complex investments like partnership K-1 forms or foreign investments. H&R Block's interface for uploading 1099-B forms is cleaner and shows a better summary view of all your investment transactions. Their cost basis tracking between tax years is also more transparent. If you're dealing with normal stocks and basic investments, I prefer H&R Block, but for really complex situations, TurboTax might have more specialized features.

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