It’s the age-old question. Which is better: to hire an accountant to do your taxes or to do them yourself using Turbo Tax or one of the many other tax filing software programs out there?

The answer to that question varies based on a number of factors. Since each tax situation is different – and each individual is different – you’ll need to consider a variety of questions before you can decide which way is most beneficial for your tax filing needs.

Which is Better: Hiring An Accountant or Using Turbo Tax?

Plenty of people have found money savings and time savings by using tax filing software programs. Still others swear by their CPA. By pondering the questions below, you can learn more about the benefits of using a CPA (Certified Public Accountant) to do your taxes versus using a tax filing software program such as Turbo Tax.

There are benefits to both options, but you’ll need to do some research to discover which choice is best for you. Here are some things to think about for both scenarios before you decide how to proceed with tax filing.

 Filing with Turbo Tax

One of the great things about using tax software such as Turbo Tax to do your taxes is that they have a number of different programs for people in every tax situation.

Just for your benefit, I’ll share the scoop on each of the different programs they offer and what types of tax filers might benefit from each program.

Turbo Tax Free Edition

Yes, I said “free”. With Turbo Tax’s Free Edition, you’ll pay absolutely nothing to file your federal taxes – OR your state taxes.

This is a popular program with Turbo Tax for obvious reasons; it doesn’t cost a dime! The free edition isn’t for every tax filer, but if you are filing a 1040EZ form or a 1040A form and fit the other parameters listed below, you can use Turbo Tax’s Free Edition.

  • If you made less than $100,000 during the year
  • If you don’t have any 1099-MISC income, but have W-2 income only
  • If you don’t own a business, a home, or own rental properties
  • If you didn’t have any major medical expenses

In other words, if you earn your money via an employer, don’t earn six figures and have a pretty basic tax situation, you qualify for Turbo Tax’s Free edition and can file your taxes at no charge to you.

Turbo Tax Deluxe

Turbo Tax says the Deluxe version is their most popular version. It costs $39.99 for federal filing and $36.99 to file with your state. Who is the Deluxe version for? Probably for the majority of tax filers. Here are the suggested parameters for using Turbo Tax Deluxe.

  • Recommended for homeowners with interest payment and property tax deductions
  • Recommended for those with cash and check or direct withdrawal charitable deductions
  • Comes with access to over 350 different deduction scenarios to help you maximize your refund

This version would be good provided you don’t have business income, rental property income or investment income.

If you have a small business, own rentals or have a lot of investments, you’ll want to go with Turbo Tax’s next step up, the Premier version.

Turbo Tax Premier

Turbo Tax Premier costs $59.99 for federal filers, and the same additional charge for state filers as with the Deluxe edition: $36.99.

What do you get when you choose the Premier version over the other two choices? You get everything offered with the Deluxe version, along with these extra features.

  • You can automatically import your investment info from your investment account website to your Schedule D form
  • You can find your cost basis
  • You can easily set up your rental properties and calculate depreciation in order to maximize your deductions

This version sports a pretty good price for those with investments and rental properties. My tax guy charges about $130 and that’s without any investment or rental property info – and he’s super cheap for this area.

If you’re needing deductions for investments and rental properties, chances are you’re going to pay a lot more than $97 if you’re using an accountant.

Turbo Tax Self-Employed

Next in line comes Turbo Tax’s Self-Employed version. Yep, you guessed it – it’s for business owners. If you’re self-employed and run a sole proprietorship or a small business, this could be a good program for you.

The Self-Employed version costs $89.99 for federal filing and $36.99 for state, bringing the grand total cost for this version to $127. This is probably less expensive than many tax professionals would cost in most areas, but it might be worth it to check their prices just to be sure.

Along with all of the benefits of the Premier version, Turbo Tax’s Self-Employed version gives you the following additional benefits.

  • It has the ability to search for industry-specific deductions based on your business
  • It covers common side hustle businesses such as ridesharing, graphic design and web design
  • It has an expansive list of deductions for nearly all types of businesses
  • It guarantees you’ll get every deduction you deserve and your biggest refund
  • It’s designed specifically for Schedule C business owners

This could be a great product for you if you have a smaller business and want an easier and more cost-effective way to file your taxes, yet while still getting the maximum in deductions you qualify for.

Turbo Tax Live

Turbo Tax Live is a new product from Turbo Tax this year. What does it offer? Along with all of the benefits of the other Turbo Tax editions, with Turbo Tax live you’ll get on-demand help with your tax filing from a Certified Public Accountant or an EA (Enrolled Agent: Tax specialists that are federally licensed specifically for assisting people with tax help).

And your agent will be with you, assisting as you fill out each and every section of your tax form so that you don’t miss anything.

Also, when your return is finished you can have your return double-checked and reviewed by a Turbo Tax specialist just to make absolutely sure you haven’t missed anything.

The price for the Turbo Tax Live version is $149.99 for federal and an additional $36.99 for state. Now, this is getting a little spendier as far as tax software goes, but it could be an option for more complex returns that is still less expensive than hiring an accountant would be.

In my research, I found that many CPAs charge between $200 and $350 per hour for their services. With Turbo Tax Live you could get help from a CPA or EA without paying an astronomical amount of money.

Although $187 (the total for federal and state with the Live version) doesn’t exactly sound cheap when compared to the other Turbo Tax products, it’s still likely going to be a lot less expensive than hiring an accountant on your own who charges a high hourly rate.

So, what can be some of the other pros of going with Turbo Tax as opposed to an accountant? What about the cons? Let’s do a quick rundown.

Turbo Tax Will Likely Be More Cost Efficient

In most cases, you’ll probably find Turbo Tax to be more cost efficient than using a tax specialist, even if you choose one of the costlier versions of the software.

In my case, I’d probably use the Self-Employed version which costs $127. Since my guy charges me $130, it’s pretty much a wash. However, I’ve been told by several people that he charges much less than most tax specialists; I guess that’s one of the benefits of forming long-term relationships with other professionals.

However, if I was paying what most of my self-employed friends pay to get their taxes done, Turbo Tax would definitely be more cost effective. Many of my friends pay upwards of $300 to $400 to get their taxes done by an accountant.

They Make it Easy to Enter Your Deductions

Turbo Tax is pretty simple to use. I know this because I used them once to compare which got me a better refund; my accountant or Turbo Tax. At that time, it was a wash.

However, Turbo Tax was very easy to use. I just followed the directions and entered what they told me to. I didn’t have to educate myself on tax laws too much or google questions on the Internet, although the program did help me learn more about deductions and tax laws.

You Can File In Your Own Time

When you hire an accountant, you’re kind of tied to their schedule. With Turbo Tax, you can work in your own time and even leave and come back to your returns later if you need to.

This is a nice benefit for people who don’t always have complete control over their schedules.

Turbo Tax Will Help Educate You on Tax Laws

One thing Turbo Tax might help you do is learn a thing or two about the tax laws and how they work. Generally, when you work with an accountant you hand them your paperwork, they hand you back a completed return, and you’re on your way.

With Turbo Tax, you get a chance at an education in tax filing as you are reading the requirements and inputting the numbers yourself.

If you like numbers and accounting, or if you’re interested in learning more about the tax filing system, this could be another benefit of using Turbo Tax.

You Like the Feeling of Being in Control

Another reason people like filing with tax software programs such as Turbo Tax is because they like being involved in every aspect of the numbers that are input on their behalf.

When you use an accountant, you give up a certain amount of control regarding your tax return. You hand your stuff to the tax specialist, and he or she hands it back to you with a note telling you what your refund will be or how big of a check you need to write.

You have little to no idea what numbers were entered into your return, and unless you scrutinize your return with a fine-toothed comb, you’re going to have to take your accountant at his word that there were no mistakes made or deductions missed.

However, if you’d rather see first-hand exactly what numbers are being used and which deductions are being included, you might prefer using Turbo Tax.

Programs like these will walk you through every line item of your return so that you can make sure you’re considering every potential deduction, giving you complete control over the numbers that are entered and the expenses and deductions that are included.

But Doesn’t Using an Accountant Wash My Hands of Responsibility for Errors?

This is a common misperception, but the real answer is to it is “no”. I know – I was surprised too! But I learned that when your taxes are audited, your accountant is responsible for providing correct calculations and numbers input, but you are responsible for the data you provide.

So, if you’re not double checking that you’ve given the numbers correctly, and you don’t have proof of what types of numbers you’re handing over to the accountant, you absolutely could be on the line for errors made.

Bonus: Turbo Tax offers users audit guidance in the case of an audit. They also have an additional product you can purchase called Audit Defense that will provide you with guidance on how to prepare if you are ever audited.

This might be an extra worth purchasing, especially if you’ve got a complicated return.

So, in which types of cases should you consider using an accountant instead? Let’s go over some different scenarios and talk about when it might be better for you to forego do-it-yourself tax software in favor of using a CPA or other tax specialist.

Using an Accountant

A Certified Public Accountant is an accountant that has passed rigorous exams to become licensed by their state of residence in various accounting procedures.  CPAs and other tax experts generally know a whole lot more about the tax laws than regular guys and gals like you and me.

Keep in mind when using an accountant that you will likely be charged an hourly rate (and not a cheap one, either) and that you’ll have to conform to the accountant’s time schedule. After all, tax preparers have many clients and need to address each one’s needs as they can, keeping in mind their own client list.

This means that your calls and emails to an accountant about your tax filing might not be answered immediately because they’re working with other people too, so you’ll need to be patient.

Here are some common situations where it might be best for you to consider using a tax specialist such as an accountant instead of using a tax software program and doing it yourself.

You Don’t Want to Know the Ins and Outs of Tax Filing

As I mentioned before, using tax software like Turbo Tax is easy from the standpoint that the creators have made most programs super user friendly.

However, if you are of the opinion that you just aren’t interested in learning how to file your own taxes, no matter how easy it is, you may be better off paying the extra money to have an accountant do it.

It’s up to you to decide if the convenience of just handing your paperwork over to someone else is worth the price, but keep in mind you’ll still be responsible for gathering all of the numbers an accountant would need to complete your taxes.

You’re a New Business Owner

If this is the first year you’ve opened or purchased your business, you may want to consider using an account for your first time filing as a business owner.

Unless you’ve had a similar business ownership in the past, there will likely be laws and deduction rules you’re not aware of, and an accountant will be helpful in those types of situations.

You’ve Had a Business Status Change

Complicated moves such as business status changes may warrant the use of an accountant for your tax filing as well.

Let’s say that during the year you’ve changed your business from a sole proprietorship to a corporation. Ensuring you’ve filed all of the correct paperwork, calculated your expenses and deductions properly for both types of business statuses and have everything needed to begin the new year properly prepared as a corporation is important.

Any errors can result in fines and potential legal action from your state, so using an account can help ensure you’ve got all of your ducks in a row.

You’ve Moved During the Year

Moving from one state to another can make tax situations complicated. An experienced and trustworthy CPA should be able to help you sort your taxes out and determine how you divide your taxes payable or refund owed between one state and another.

You’ve Had a Major Life Event Such as a Baby, Marriage or Divorce

Kids and marriage often have a significant impact on one’s tax situation. If you’ve married during the year, you may not be sure what the best way to file is. Do you file jointly? Separately? A good accountant should be able to advise you of the best way to file for your particular situation.

The same goes for having kids. Kids can come with lots of deductions – woohoo! But what can you deduct and what can’t you deduct? An accountant should be able to help you determine what types of write-offs you qualify for as a parent.

Divorce situations can also be sticky at tax time. Who gets to claim the kids as deductions? What are the rules regarding child support and alimony when it comes to taxes; are those things considered income? Can they be written off as expenses?

An accountant should know and be able to help you with assessing how these types of expenses (or income) can impact you from a tax standpoint and how to file in a way that doesn’t contradict with how your former spouse is filing.

You Have a Competent CPA Who Makes Your Life Easy

Sometimes, regardless of the ease, convenience and cost savings of do-it-yourself tax software programs, some people have a long-standing relationship with an accountant that just makes tax filing time easy for them.

If this is the case with you; if you have your “guy” or your “gal”, and you’ve been using him or her for years on end and it’s just easier, you may decide you’d rather stick with what you’ve always done than learn something new and save some cash.

And that’s okay. Part of learning and implementing value-based spending into your budget is deciding which services and products are worth paying for.


In the end, there’s no right or wrong answer as a whole, but instead, whether you use a tax software program like Turbo Tax or whether you hire an accountant or other tax specialist to do your taxes is up to you and your individual tax situation.

I love it that state-of-the-art tax software programs have made it easier – even for those with more complicated returns – for people to save money and time by filing their taxes on their own.

Any product that will help you save money, save time and learn a useful skill in the process is valuable in my book.

But at the end of the day only you can decide which tax filing method is best for you. It might be beneficial to give Turbo Tax a try if you never have before, just to see if it’s as easy and streamlined as people say it is.

Oh, I forgot to mention one other thing about Turbo Tax: If you’re a member of the United States military, you can get a $5 discount on all Turbo Tax products simply by entering your military W-2 to verify your rank when you file.

This is just a nice little “thank you” from Turbo Tax to all of our military personnel.  If you’re using an accountant you may want to ask them if they offer military discounts as well. After all, a penny saved is a penny earned.

How do you file your taxes: do you use an accountant or an online tax software filing system? Have you ever used Turbo Tax? Share your tax filing experiences in the comments below.

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