How to Find the Tax Preparation Method That Works for You

Published on February 19, 2025 | 3 min read | Webster Bank

Each year when tax season rolls around, it comes with the burden of figuring out how to file your taxes correctly. The good news is that there are several ways to prepare and file your taxes, depending on your needs and the complexity of your taxes. Whether you’re trying to save money, increase your refund, or need professional tax advice, here are different methods to consider that can help you select a tax filing process that may be appropriate for your circumstances.

Do-It-Yourself (DIY) with Tax Software

If you are detail-oriented and like working with numbers, DIY tax software might be the tool you want to use. Some tax preparation software applications are intuitive, present questions, walk you through each step, and show you how to file.

Pros:

• Cheap, and almost always for a simple return.
• Easy to use, with prompts and instructions.
• Filing online creates faster refunds if you e-file.

Cons:

• Not recommended for complex tax issues.
• You need some basic finance knowledge and have no problems working with numbers.

Ideal For: Anyone comfortable using a computer and needs to file a simple return, such as someone with a W-2 form for wages and only a few deductions.

Hire a Tax Professional

Hiring a competent tax professional is wise if you have complicated taxes or own a business. Tax professionals include CPAs, Enrolled Agents (EAs), or tax attorneys who provide personalized guidance and deal with complex tax issues.

Pros:

• Professional guidance for complex returns.
• A professional may find deductions and credits you might miss.
• Provide support, especially if you’re nervous about an audit.

Cons:

• Hiring a professional is costly, especially with complex returns.
• You must schedule time to get documents together and talk with your tax preparer.

Suitable For: Those with complex tax affairs, business owners, and those who prefer professional advice when dealing with the IRS.

Use the IRS Free File Program

If you qualify, you may use free online tax-filing systems that the IRS accepts to file a simple return without paying anything.

Pros:

• Free to everyone who qualifies.
• Online and easy to use.

Cons:

• Restricted to taxpayers under a specific income limit.
• Free for federal income taxes only.
• State tax filing is a paid service.

Recommended For: Those who do not owe any taxes and people with incomes below the IRS Free File threshold. For 2024, Free File is accessible to those earning $73,000 or less as their adjusted gross income (AGI).

VITA and TCE

VITA and TCE are the Volunteer Income Tax Assistance and Tax Counseling for the Elderly.

These tax preparation services are free of charge and provided by IRS-trained volunteers. VITA is for low—to moderate-income people, disabled individuals, and English-language non-native speakers. TCE is for older people geared towards retirement.

Pros:

• Services are free and provided by qualified volunteers.
• In-person assistance is available.
• Ideal for simple returns and for people who need guidance on using IRS forms.

Cons:

• Depending on where you live and the number of local volunteers, access to getting help may require long wait times and patience.
• These volunteer services are not suitable for complex tax returns.

Ideal For: Older adults, people with low-to-moderate incomes, and anyone who wants to have basic tax questions answered.

Important Disclosures:

Content in this material is for educational and general information only and not intended to provide specific advice or recommendations for any individual.

This article was prepared by WriterAccess.

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