Reviewed September 2026.
DIY tax software (TurboTax, H&R Block software, TaxAct, Free File-eligible tools when you qualify, and similar) walks you through Form 1040 interview screens. A paid preparer (Enrolled Agent, CPA, or tax attorney; or a retail chain preparer) enters the return for a fee. Both can produce a correct return. The choice is mostly complexity, time, and fee structure, not which brand advertises the biggest refund.
Basics of the filing process: Filing taxes for beginners. Refund-product upsells: Tax refund advances and paid preparers.
When software is usually enough
- W-2 income, standard deduction, simple credits (e.g. straightforward Child Tax Credit).
- You can upload last year’s PDF and recognize every form in the interview.
- You want to keep costs near $0-$120 federal (state fees extra; IRS Free File may apply when you meet its income and partner-tool rules).
- You are comfortable answering IRS notices yourself with your saved PDF and worksheets.
When a credentialed preparer often pays for itself
- Multiple 1099-NEC / 1099-K streams, rental Schedule E, or K-1s: W-2 vs 1099 basics.
- First year of self-employment with quarterly estimate cleanup: Side hustle quarterly taxes.
- Stock options, employee stock purchase plans, or brokerage 1099-Bs with missing basis.
- Life events (marriage, divorce, dependent shifts, marketplace premium tax credit reconciliation) that tripped you last year.
- You want someone with a PTIN who will discuss a notice; confirm what “audit support” actually includes in writing.
Fee math (illustrative)
| Path | Typical consumer cost pattern | Watch-outs |
|---|---|---|
| DIY software | Federal tier $0-$150+; state often separate | Upgrade prompts, “review” add-ons |
| Retail chain | Base prep $150-$400+ for simple-moderate | Refund advances, add-on defense packs: RAL fees |
| EA / CPA | Hourly or return-based; often $300-$800+ for moderate complexity | Scope: personal only vs business returns |
Worked sketch: Morgan has two W-2s and a $2,200 Schedule C side gig. DIY software full tier is $89 federal + $49 state. A local EA quotes $375 and will file extensions and one notice response in-fee. Morgan picks the EA after last year’s self-employment tax surprise, then uses an estimate worksheet before the meeting: Estimate your refund before filing.
Checklist
- List every form you received (W-2, 1099s, 1098, 1095-A, brokerage).
- Price DIY at the tier that supports those forms, not the homepage teaser.
- Ask preparers: PTIN, credentials, total fee, what happens if the IRS sends a math notice.
- Decline refund advances unless you have priced the fee in writing.
- Keep a PDF of the signed return and e-file confirmation either way.
Educational only. Not tax advice. Credentials, fees, and Free File eligibility change; verify with IRS.gov and the provider’s engagement letter.