DIY Tax Preparation? - The Pros and Cons You Need to Know

It’s tax season!

If you’re gearing up for it, you’ve probably wondered if doing your own taxes on a tax prep website is the right move. They’re advertised as being convenient, user-friendly, and can save you a bundle compared to hiring a professional. But are they the best option for your unique needs?

In this edition, of MoneyMinded Sidekick, we’re breaking down the pros and cons of tax preparation websites to help you make an informed decision. Let’s get into it!

The Pros of Tax Preparation Websites and DIYing Your Taxes

1.?????? Convenience at Your Fingertips Tax prep websites let you file from anywhere with an internet connection. Whether you’re working from home or on the go, it’s all just a few clicks away. You don’t have to send in or upload anything to another party.

2.?????? Cost-Effective Most tax software platforms are much cheaper than hiring an accountant. Some can even offer free versions for simple returns, making them appealing for budget-conscious business owners.

3.?????? Step-by-Step Guidance Modern tax prep websites walk you through the process with prompts and explanations, making it easier to file correctly—even if you’re not a tax expert.

4.?????? Quick Calculations Forget manually crunching numbers. Tax software automatically calculates totals, deductions, and refunds for you.

5.?????? E-File Options Most platforms allow you to file electronically with the IRS, speeding up your refund and cutting down on paperwork.

All of that sounds pretty good right? Well, now let’s take a look at the other side of things.

The Cons of Tax Preparation Websites and DIYing Your Taxes

1.?????? Limited for Complex Situations If your business taxes are complex (multiple revenue streams, employees, or substantial deductions), tax prep websites might not cover all your needs or may not give you all of the support or insights for your specific situation.

2.?????? Room for Human Error While the software helps, it’s only as accurate as the information you input. If you’re unsure about specific deductions or tax rules, mistakes can and often do happen.

3.?????? No Personalized Advice Unlike working with a tax pro, software doesn’t offer tailored strategies to help you save money or plan for the future. This can often be the case even if they offer a pro because their goal is getting the job done quickly with not necessarily making sure you’re in the best position.

4.?????? Hidden Fees Some platforms advertise free filing but hit you with fees for more advanced features, state returns, or additional forms, be sure to check out FAQs and pricing charts.

5.?????? Data Security Concerns Tax websites store sensitive financial information. While most use strong encryption, no system is 100% immune to cyber threats.

Popular Tax Preparation Websites to Consider

If you’re thinking about using tax prep software, here are some well-known options. Be sure to check FAQs and determine if this really is worth the risk for a few bucks of savings.

• TurboTax: User-friendly but pricier for advanced features.
• H&R Block Online: Great support and mid-range pricing.
• TaxAct: Affordable and straightforward.
• FreeTaxUSA: Budget-friendly with limited bells and whistles.

Who Should (and Shouldn’t) Use Tax Prep Websites?

?? You Might Love Tax Websites If:

• Your taxes are straightforward.
• You’re a freelancer, solopreneur, or have minimal deductions.
• You’re tech-savvy and comfortable navigating online platforms.

?? Consider a Professional If:

• Your business is growing rapidly.
• You have employees or contractors.
• You want to maximize deductions and avoid costly mistakes.
• You want to have a partner who knows you and your business.

Still Not Sure What’s Best for You?

If you’re on the fence, don’t sweat it. At Sidekick Accounting, we specialize in helping business owners like you navigate tax season with ease. From personalized advice to full-service tax prep, we’ve got you covered.

Shoot me an email ([email protected]) or DM me and let’s figure out the best path for YOU this tax season.

Or if you're ready to get started you can get things rolling here: bit.ly/sasTaxPrepDeposit

Here’s to a stress-free tax season!

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In case we haven’t met yet, I’m Megan Schwan! CEO and Founder of Sidekick Accounting. My passion is small business success, especially for those of us who rely on our business for our livelihood. As a single mom, this definitely rings true for me, which is why all of our services are based on supporting and educating business owners like you.

Your numbers matter to the growth and success of your business and we want to help you achieve your version of success! Whether you need bookkeeping, tax prep, tax strategy, or effective Profit First business coaching and implementation, we are here to be your “sidekick”! Contact us today to get started!

Interested in learning how we can serve you? Visit our Linktree for all of our current offerings and links or send me a DM linktr.ee/sidekickaccounting