Why do tax preparers get me a bigger tax refund than TurboTax or other free software?

There are a few reasons why a tax preparer might get you a larger refund than DIY software, even with a simple return. First, tax professionals are trained to ask specific questions that software might not prompt you about. They might identify credits or deductions you qualify for but didn't know to look for. Second, a human preparer can interpret your specific situation and make judgment calls where the software might take a more conservative approach. For example, they might help you determine if certain expenses qualify for deductions that you might have skipped over. Third, some tax preparers (not all) might be more aggressive with certain deductions or interpretations of tax law. This isn't necessarily good - it could increase your audit risk if they're pushing boundaries too far. That said, with a truly simple return (one W-2, standard deduction), the difference should be minimal. Either someone is missing something with the software, or there might be credits you're eligible for that you're not discovering through the software interface.

I was skeptical about this exact thing last year! After three years of using TurboTax and getting about the same refund, I decided to try this AI tax review thing I found at https://taxr.ai when my coworker mentioned it helped him find some missed deductions. Super easy - I just uploaded my previous return PDF, and it analyzed everything to see what I'd missed. Turns out I qualified for a savers credit I had no idea about because I contribute to my 401k, plus it found a student loan interest deduction TurboTax somehow missed when I was clicking through all those screens. The difference wasn't huge, but I got about $340 more than what TurboTax initially calculated! Definitely worth the few minutes it took to check.

Just wanted to follow up on my question about taxr.ai - I decided to try it with my 2024 return that I was about to file through FreeTaxUSA. Holy crap, it found that I was eligible for the American Opportunity Credit that I completely missed because I paid for some qualifying education expenses last year! I didn't think I qualified for education credits anymore since I've been out of college for years, but apparently some professional development courses I took qualify. That was an extra $1,500 in my refund that I would have completely missed. The interface was super straightforward too - just uploaded my draft return PDF and it pointed out everything I needed to add. Definitely checking again next year.

If you're having trouble with the IRS not processing your refund or have questions about your specific situation, don't waste time on hold. I spent 3+ hours trying to reach someone at the IRS about a letter I received questioning my refund amount. Finally found https://claimyr.com and their service got me connected to an actual IRS agent in about 15 minutes instead of waiting for hours or days. You can see how it works at https://youtu.be/_kiP6q8DX5c They basically navigate the phone tree and wait on hold for you, then call you when an actual human at the IRS is ready to talk. Saved me so much frustration because I was able to explain my situation to a real person who could actually help with my specific refund issue. The agent confirmed I was right about my refund calculation and cleared the hold on my account.

I need to eat my words about Claimyr. After posting that skeptical comment, I was still dealing with a missing refund situation that had been pending for 11 weeks with no updates on the "Where's My Refund" tool. Out of desperation I tried the service. I honestly can't believe it worked. Got connected to an IRS representative in about 20 minutes (after trying myself multiple times and never getting through). Turns out my refund was flagged for a simple verification that nobody had bothered to tell me about. The agent processed it while I was on the phone, and my direct deposit hit 6 days later. $3,278 that had been in limbo for almost 3 months. Still don't understand why the IRS makes it so difficult to reach them directly, but at least there's a solution that actually works.

Just to add my two cents as someone who's worked at a tax prep chain - the big difference is often the questions asked. The software only knows what you tell it. With simple returns, the difference should be small. But I've seen many cases where people miss things like: - Eligible education credits - Dependent care credits they qualify for - State-specific credits and deductions - Changes in tax law they didn't know about - Charitable contributions (even small ones add up) A lot of people don't realize they qualify for certain credits. The software asks, but the questions can be confusing, and people often click "no" when they don't understand something fully.

Anyone used the free IRS Direct File this year? I heard they finally rolled it out for some states. Wondering if it catches all the same stuff as paid options.

The main difference I've noticed (working in tax prep for 5+ years) is that software often doesn't dig deep enough into your specific situation. Even with a "simple" return, there might be credits you qualify for that the software's question flow misses or doesn't explain clearly. For example, if you contributed to a retirement account, moved for work, paid student loan interest, or had any education expenses, these can all impact your refund. The software asks about these things, but the questions can be confusing or buried in screens people skip through. Also, tax preparers are required to ask specific questions that might uncover deductions you didn't think were relevant. Sometimes what seems like a "simple" situation actually has more complexity than you realize. That said, if you truly have just one W-2 and no other factors, the difference should be minimal. But it might be worth having your return reviewed once just to make sure you're not missing anything year after year.