If you’re debating using an online CPA service vs. an in-person CPA, it’s important to consider the complexity of your tax return, how you want to interact with your CPA, and how much you want to spend. Here’s a more in-depth look at online vs. in-person CPA services to help you decide which option could make more sense for your taxes.
How Complicated Is Your Tax Return?
To start, it’s important to understand your tax situation. If you have one or two W-2 forms and a couple of 1099s from savings and investments, you have fairly simple taxes that could be easily handled by most qualified CPAs. It’s also probably faster to upload your tax forms online than it would be to drive them to a tax professional’s office. As your taxes get more complex, there may be benefits to working with an in-person CPA compared to an online CPA. When you use an online tax service from companies like TurboTax or H&R Block, you will probably be assigned to someone who isn’t familiar with your tax history. That isn’t a problem with simple taxes, but it may not be ideal for wealthy households, business owners, or people with complex investments. If you use the same accountant every year, they’ll get to know your situation and may be able to offer more customized tax advice. That may make it easier to confidently hand off your tax paperwork and let someone else take care of the rest.
Are You Looking for the Cheapest Option?
If you work with a personal CPA in a small practice, you may pay a premium. Here’s a snapshot of current pricing for major online and offline tax prep services. Please note that we used the standard pricing for this table, excluding free plans and special offers.
How Much Time Do You Have?
If your number one concern is convenience, the fastest and easiest way to get your taxes done is probably with an in-person CPA. With in-person tax preparation services, you can drop off a pile of forms and your tax preparer will take care of the rest—although you may pay extra if your documents aren’t organized. When you file online, you may have to scan and upload some documents or submit them via other means. Depending on your comfort with computers and apps, that could be a quick and easy task, or worse than getting a cavity filled at the dentist. Either way, once you submit your files, you shouldn’t have to do much more work. However, it’s a good idea to review everything before signing off on your taxes for submission to the IRS.
Did You Have Any Major Life Events Last Year?
If your taxes are similar from year to year, you may not have many specific tax deductions or credits to worry about. Even if you have complex investment returns, most online and offline CPAs should be able to handle your taxes. However, if your past year included any real estate purchases, employment changes, marriage, divorce, or new kids, or you spent different parts of the year in different states or countries, you may want to enlist the help of an in-person CPA. Even if you only want this extra handholding for a year or two while you learn how these new circumstances affect your taxes, it may be worth the extra cost.
