Stay Ahead of Law Changes & Protect Yourself Against Being Audited: Corporate Transparency Act and Reasonable Compensation

Turbo Tax vs. Tax Professional

Turbo Tax vs. Tax Professional: Making the Right Choice

Ok, full disclosure. We are a tax firm. We want your business and we are in the business of doing taxes. With that being said, I will try to give you an unbiased approach to the best method of getting your taxes done.

Let me start of by saying that I am not a big fan of most tax preparation software, but they do have some benefits and are the right fit for some people. First of all, they are fairly cheap! Tax time is usually not a fun time because it means we are giving away hard-earned dollars to the government. Spending a few dollars on TurboTax can help reduce a little bit of that tax liability. This is only the case up until you hit a certain level of tax complexity. If you are working multiple jobs, have a rental property, run a business or anything other than a straight W2 job, it is usually worth it to hire a professional. In theory, TurboTax asks you all of the questions you need to answer in order to complete your tax return and save the most money. But the reality is some of the descriptions can be obscure and without a full understanding of the tax code, you are leaving money on the table.

CPAs & EAs

On the other side of the equation, you have CPAs and EAs that can prepare taxes. To learn more about what an EA is HERE. While hiring a professional to do your taxes can be pricier than a simple tax software, the benefit normally outweighs the cost. If I propose that you pay me $100 and I will earn you $500 in return, most people would say yes in a heartbeat. This is part of the value proposition of a tax professional. They may charge a good amount more than TurboTax to file your taxes, but they will often save you more money, time, avoid headaches.

It can be intimidating opening up financial data with someone you have just barely met. You may feel like you are losing control by not knowing how everything is calculated. This is very common, but also another benefit to finding a trusted advisor who can work with you and hold you accountable each year. Tax prep software is good for compliance but does nothing for tax planning. Thoughtfully planning out certain decisions can help minimize the total amount of taxes you will owe. An accountant or tax professional that understands your financial situation as well as the tax code can ask you questions and dig deeper to uncover tax credits and maximize your tax savings.

The Third Option

There is also a third option: filing your own taxes without the support of a software or professional. But there is a reason most people don’t chose this option. Taxes are tough.

There are different versions of TurboTax that offer differing levels of capabilities and cost, but the principles are generally the same. We sometimes have clients come in with a simple return and we tell them that they can do it on TurboTax and get the same result. We still offer more than TurboTax does because with our fee we educate them and allow them to ask us questions all year, but this added value may not be worth the cost for such a simple return.

Well there you have it! My thoughts and opinions on TurboTax vs. Tax Professional.

Clark Boyd
General Manager

The Molen & Associates Difference

Mike Forsyth

“Super helpful and timely. This is our first year with them and we look forward to trusting them with our taxes and business books for years to come.”

Caitlin Daulong

“Molen & Associates is amazing! They run an incredibly streamlined process, which makes filing taxes a breeze. So impressed with their attention to detail, organization, and swift execution every year. Cannot recommend them enough!”

Sy Sahrai

“I’ve been with Mr. Molen’s company for few years and I felt treated like family respect and dignity. They are caring, professional and honest, which hard to find these days. Love working with them.”

Maximize Your QBI Deduction Before It’s Gone: Act Now!

Maximize Your QBI Deduction Before It’s Gone: Act Now! Introduced by the Tax Cuts and Jobs Act (TCJA), the Qualified Business Income (QBI) Deduction has become a cornerstone tax break for business owners. However, this valuable deduction is scheduled to sunset after...

Outsourced vs. In-House Bookkeeping: Which Is Best?

Outsourced vs. In-House Bookkeeping: Which Is Best? As a small business owner or self-employed professional, keeping accurate financial records is critical for managing cash flow, preparing taxes, and driving growth. When it comes to bookkeeping, you have two main...

Cash vs. Accrual Accounting: Which is Best for Your Business?

Cash vs. Accrual Accounting: Which Method is Right for Your Business? Choosing the right accounting method is one of the most important financial decisions a small business owner can make. Whether you’re just starting out or looking to refine your bookkeeping process,...

Individual Tax Preparation: What You Need to Know Before Filing

Discover essential tips for individual tax preparation When tax season rolls around, one of the most common questions people ask is: “Should I do my taxes myself or hire a professional?” If you’re considering individual tax preparation, this guide will walk you...

How to Save Taxes When Selling a Business

How to Save Taxes When Selling a Business Selling a business is a significant milestone, whether you’re ready to retire, start a new venture, or simply cash in on years of hard work. However, without proper tax planning, a large portion of your profits could go toward...

What to Know About the Kiddie Tax

What to Know About the Kiddie Tax The Kiddie Tax is a tax law that can catch families off guard if they’re not aware of how it works. Designed to prevent parents from shifting investment income to their children to take advantage of lower tax rates, the Kiddie Tax...

What to Know About 1099s and Contractor Payments

What to Know About 1099s and Contractor Payments For small business owners and self-employed professionals, hiring independent contractors can be a flexible and cost-effective way to grow your business. However, managing contractor payments comes with its own set of...

Breaking Down the Costs of Poor Bookkeeping

Breaking Down the Costs of Poor Bookkeeping For small business owners and self-employed professionals, bookkeeping might not always feel like a top priority. However, neglecting this critical task can lead to significant financial and operational consequences....

Top examples and benefits of why you need a 6000 lb vehicle

Maximize Your Vehicle Tax Deductions: Popular SUVs, Crossovers, and Trucks with GVWRs Over 6,000 Pounds For business owners and self-employed professionals, purchasing a vehicle with a gross vehicle weight rating (GVWR) over 6,000 pounds can open the door to...

Request an Appointment Today

3 + 7 =

Call us at

Share This