Tax season comes around every year, and many taxpayers face the same dilemma: Should I file my taxes myself or hire a tax professional?
With the rise of free and affordable tax software, filing your own taxes has never been easier. However, complex financial situations, self-employment, and tax law changes can make professional help a wise investment.
In this guide, we’ll explore the pros and cons of DIY tax filing vs. hiring a tax professional, and help you decide which option is best for your 2025 tax return.
1. When You Should Do Your Own Taxes
If your tax situation is simple and straightforward, filing your taxes yourself can save money and be relatively easy.
✅ Best for DIY Filing If:
✔ You Have a W-2 Job – If you only receive income from a single employer, your return is simple.
✔ You Take the Standard Deduction – If you don’t have enough deductions to itemize, filing is easier.
✔ You Have No Investment or Rental Income – Stocks, real estate, and dividends can complicate tax returns.
✔ You’re Eligible for Free Tax Filing – If you earn under $79,000, you qualify for IRS Free File or free tax software.
💡 Tip: Use online tax software (TurboTax, H&R Block, FreeTaxUSA) to simplify the process and ensure accuracy.
2. Best Free & Low-Cost DIY Tax Filing Options
| Tax Software | Best For | Cost |
|---|---|---|
| IRS Free File | Simple returns, low income | Free |
| TurboTax Free Edition | Basic W-2 filers | Free |
| H&R Block Free Online | Simple returns with dependents | Free |
| TaxSlayer Classic | Freelancers, side hustlers | Starts at $24.95 |
| Cash App Taxes | Self-employed, stock traders | Free |
| FreeTaxUSA | Low-cost filing for all taxpayers | Free federal, $14.99 per state |
💡 Tip: If you only need to file a W-2, free tax filing options work perfectly.
3. When You Should Hire a Tax Professional
If your taxes are more complicated, hiring a tax professional can save you time and money—and reduce the risk of IRS audits or mistakes.
✅ Best for Hiring a Tax Professional If:
✔ You Are Self-Employed or a Business Owner – Tax pros help maximize business deductions and ensure IRS compliance.
✔ You Have Multiple Income Sources – Freelance, rental, investments, and dividends complicate tax filing.
✔ You Want to Maximize Deductions & Credits – Tax professionals find hidden deductions you may miss.
✔ You Experienced a Major Life Change – Marriage, divorce, home purchase, inheritance, or starting a business can impact your taxes.
✔ You Owe Back Taxes or Are Under an IRS Audit – A professional can help you negotiate with the IRS.
💡 Tip: If you own a home, run a side business, or invest in stocks, a tax professional can help reduce your tax burden legally.
4. Pros & Cons: DIY vs. Hiring a Tax Pro
| Factor | Do It Yourself | Hire a Tax Professional |
|---|---|---|
| Cost | Free to $150 | $150 to $500+ |
| Time Required | 1-6 hours | Minimal time required |
| Risk of Mistakes | Moderate | Low |
| Best For | Simple tax situations | Complex tax returns |
| Audit Protection | Limited | Often included |
| Maximizing Deductions | Self-guided | Expert-guided |
💡 Tip: If you want peace of mind and the highest refund possible, a tax professional is worth the cost.
5. How Much Does a Tax Professional Cost?
The cost of hiring a tax professional depends on your financial situation and the complexity of your return.
| Tax Situation | Average Cost |
|---|---|
| Basic W-2 Return | $150 – $300 |
| Freelancer / Self-Employed | $250 – $500 |
| Small Business Owner | $400 – $800 |
| Multiple State Returns | $250 – $600 |
| IRS Audit Representation | $1,000+ |
💡 Tip: A certified tax preparer or CPA can save you thousands in tax deductions and credits.
6. How to Choose a Tax Professional
If you decide to hire a tax professional, choose wisely.
✔ Look for Credentials – Find a Certified Public Accountant (CPA), Enrolled Agent (EA), or IRS-registered tax preparer.
✔ Ask About Fees – Some charge a flat fee, while others take a percentage of your refund.
✔ Check Reviews & References – Ensure they have good ratings and experience with your tax situation.
✔ Avoid Scams – Be cautious of “too good to be true” refund promises—you are responsible for your return.
💡 Tip: Working with a reputable tax firm like First Union Tax ensures accuracy and maximum refunds.
7. Can You Start with DIY and Upgrade to a Tax Pro?
Yes! Many tax software providers offer “hybrid” options, where you can start filing yourself but upgrade to expert help if needed.
📌 Hybrid Tax Filing Options
✔ TurboTax Live – Start DIY, then get help from a tax expert ($89+).
✔ H&R Block Virtual Tax Pro – Work with a tax expert online ($85+).
✔ TaxSlayer Premium – Includes audit defense & tax pro support ($54.95).
💡 Tip: If you start feeling overwhelmed, upgrading to a tax expert can ensure accuracy.
8. What Happens If You Make a Mistake on Your Taxes?
🚨 If you make an error on your tax return, you could:
✔ Get a reduced refund or owe more taxes.
✔ Trigger an IRS audit.
✔ Face penalties and interest on unpaid taxes.
💡 Tip: If you accidentally underreport income or miss deductions, you can file an amended return (Form 1040-X).
Should You DIY or Hire a Pro?
📌 Choose DIY If:
✔ You have a simple tax return (W-2 income, standard deduction).
✔ You want to save money and file for free.
✔ You feel confident using tax software.
📌 Hire a Tax Professional If:
✔ You’re self-employed, a small business owner, or an investor.
✔ You want to maximize deductions and credits.
✔ You need help with an IRS audit or back taxes.
📌 Need expert tax help? Contact First Union Tax today for personalized tax preparation and maximum refunds!
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