Tax Filing: DIY or Hire a Professional?

Preparing a federal tax return is different for everyone. It can range from entering a few tax forms into software to sorting through business income, investments, and multiple deductions. Filing on your own can keep preparation costs down, if you have a simple return. Professional help can be useful when your return involves issues you are not comfortable handling yourself. Your choice depends largely on the complexity of your finances as well as your available time and resources.

A financial advisor can help you understand the scope of your tax liability and whether hiring a professional makes sense.

Weighing the Pros and Cons

Cost is one reason to prepare your own return. Online tax software costs considerably less than hiring a preparer, and some taxpayers can file for free. During the 2026 filing season, IRS Free File offered guided software to taxpayers earning $89,000 or less. Free File Fillable Forms were also available regardless of income for people comfortable preparing their own federal returns. ¹

There are plenty of websites that offer free or low-cost tax preparation services like TaxAct or H&R Block. Depending on the software, you can check your return for errors and assess your audit risk before you file. Some companies even offer ongoing support and assistance if you end up getting audited.

Another benefit of doing your taxes yourself is it protects your personal information. If privacy is a concern, or you’re not able to find a tax professional you trust, you might just do it yourself.

However, doing your own taxes is typically more time-consuming than handing it off to someone else. If you have trouble understanding the different tax rules it can take you considerably longer. Even a relatively straightforward return could still take several hours to complete. Using online tax software can speed up the process, but it can be difficult to get help with it.

There is also room for mistakes when you prepare a return yourself. Software can only perform calculations and flag some missing information. The responsibility for entering the correct income, deductions, credits and other details lies with you. An error can delay processing, change your refund, or leave you with additional tax to pay.

Questions to Ask Yourself When Choosing

Here are a few questions to consider when choosing a tax preparation strategy:

• Has your tax situation changed? Experience a new job, marriage, divorce, retirement, home sale, or other major financial event? These can introduce tax issues that were not on your previous return. A professional may be useful when you are unsure how those changes should be reported.
• Will you itemize or take the standard deduction? The 2026 standard deduction is $16,100 when filing single or married filing separately. Joint filers can deduct $32,200, while heads of household receive a $24,150 standard deduction. Itemizing generally makes sense only when your allowable itemized deductions exceed the standard deduction available to you. ²
• Do you own a business? Self-employment can add business income and expenses, estimated taxes, self-employment tax and other reporting requirements to a return. Professional assistance may be worth considering when you are uncertain about how those rules apply to your business.
• Do you have investments or rental property? Sales of investments, cryptocurrency transactions and rental income can require additional calculations and tax forms. Cost basis records, capital gains, depreciation, and passive activity rules involve more work than a return based on wages.

The decision does not have to be based on complexity alone. Someone with a relatively simple return may still prefer to pay for convenience, while a taxpayer with several forms may be comfortable handling the work with software. Consider what your return contains, how confident you are in reporting each item and what professional preparation would cost before choosing.

Risks of Doing Your Own Taxes

Before deciding to do your taxes at home you should weigh the pros and cons and determine if it makes sense. For example, if you have a straightforward tax situation and a low budget then you’ll probably want to do your own taxes to save money on hiring a pro. Here are some of the risks to be aware of before starting your taxes:

• Accuracy: While software can walk you through your taxes it can’t do it for you. You still have to enter the data and know how to find what you need. This can lead to mistakes and your taxes could be misfiled.
• Paying More Than You Should: Preparing your own return can also mean overlooking a deduction or tax credit that applies to you. Tax software can prompt you for information, but the result still depends on the details you enter and the choices you make during preparation.
• Less Audit Protection: The assistance included with tax software varies by provider and product. A paid preparer’s ability to act for you in an IRS proceeding also depends on that person’s professional status. Attorneys, CPAs and enrolled agents have broader authority in these matters than preparers whose credentials carry narrower representation privileges.

When Paying for Tax Help May Be Worth It

Professional preparation can become more valuable as the number of tax issues on your return grows. Running a business, owning rental property, exercising stock options, selling investments, receiving income from several states or dealing with an estate or trust can require records and calculations that go beyond entering a W-2 and a few common forms.

The type of professional matters as well. Preparing federal returns for compensation requires a PTIN, but possessing one does not establish a specific professional credential or level of tax expertise. Representation authority also differs among preparers, with attorneys, CPAs and enrolled agents permitted to handle a wider range of matters involving the IRS. The IRS maintains a directory that can be used to check certain credentials and qualifications.

Before hiring someone, find out what is included in the quoted price, whether assistance continues once the tax return has been submitted, and what happens if the IRS later contacts you. Review the finished return carefully before signing because hiring a preparer does not transfer responsibility for the information reported under your name.

A Simple Way to Compare the Cost

You can put a dollar value on the decision before paying for help. Start with the quoted preparation fee and compare it with the amount of time you expect to spend filing on your own. For example, a $400 preparation fee effectively costs $50 for each hour saved if doing the return yourself would take eight hours. That does not determine which option is better, but it gives you a concrete figure to compare with the convenience and assistance you would receive.

Also check whether you qualify for free preparation before buying software or hiring someone. IRS Free File, Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) can provide no-cost options for eligible taxpayers. Available programs and income limits can change by filing season, so checking current eligibility before paying a preparation fee can reduce an avoidable expense.

Bottom Line

Filing your own taxes can make financial sense when your return is straightforward and you are comfortable working through the required forms. Professional preparation may be more useful when business income, investments, rental property or other tax issues make the return harder to complete accurately. Before paying for help, compare the preparation fee with your return’s complexity, the time you would spend doing the work yourself and any free filing options available to you.

Tips for Tax Preparation

• Financial advisors can do more than just manage your wealth. Many also specialize in taxes. They can help you with your tax filing as well as with proper planning to help lower your tax liability. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
• Looking for an estimate of what you might pay on your tax return? Consider using SmartAsset’s free income tax calculator.

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