20 Jun Should I use a CPA or do my own taxes with an online service?
Q. Now that tax season is over, I have a question. My tax return is simple — no businesses, no kids, no retirement distributions, no freelance income — but I’ve always used an accountant anyway. How can I decide if I should just use an online service instead of a real human being?
— Taxpayer
A. It makes sense that no one wants to pay for professional services if they don’t need to.
Choosing to use a professional instead of an online service to prepare your taxes really comes down to personal choice, or what’s called the “cost/benefit rule,” said Michael Karu, a certified public accountant with Levine, Jacobs & Co. in Livingston.
He said you need to ask yourself whether the benefit of using the CPA outweighs the cost savings, if any, of using an online service.
“The advantage to using an online tax service is the cost should be lower, emphasis on `should be,’” he said.
The reasons for using a CPA are varied.
The first is if any issues arise in the preparation of the return, the CPA should be able to handle it, Karu said.
“Second, there is a level of comfort that comes with having a qualified tax professional prepare your returns that you don’t get with an online service,” he said. “Lastly, if you need tax advice during the year, you have someone to call.”
Good luck making the decision that’s best for you.
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This story was originally published in June 2024.
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