Tax preparation software has continued to gain popularity as individuals look for ways to reduce costs and seek independence by filing their taxes on their own. Tax preparation software is designed to help taxpayers prepare and file their taxes in a user-friendly way that asks a series of questions to determine the applicable forms, filing requirements and related credits/deductions.
Using a software program helps you calculate, prepare and file your annual tax return, similar to hiring a CPA or tax professional. However, the main difference between a software program and a CPA is the human touch.
Keep reading to learn more about filing your taxes using a software program.
(Have you read our blog, “How to Make Tax Preparation Easy”?)
Can I file my taxes myself using a software program?
The short answer is yes. There is no reason that taxpayers can’t utilize tax preparation software to file. However, the long answer is that your tax situation will determine how easy or advantageous it is for you to use a software program to file your taxes.
If you have a simple tax situation, it is likely going to be fine but if you have a more complicated tax situation, it is likely better for you to spend the extra money to hire a CPA tax professional than try to file your taxes using a software program.
Remember, tax software will accept anything that is inputted into it, there is no human verification that ensures what you have entered is correct.

Tax Preparation Software is Typically Recommended for People who:
- Are single
- Have a straightforward return (i.e. one tax document from an employer)
Tax Preparation Software is Typically Not Recommended for People who:
- Are married and/or have dependents
- Are self-employed
- Own a business
- Have taxable assets other than their employment income
- Have received an inheritance
- Have undergone major life changes (i.e. divorce)
- Have foreign income
Advantages and disadvantages of using a software program
Just like anything, there are advantages and disadvantages to preparing your taxes using a software program versus a CPA tax professional.
Advantages
- Affordable: tax preparation software usually costs around $50. Some programs are even free depending on your situation or eligibility criteria. The IRS has a program called IRS Free File, which makes tax preparation software freely available to taxpayers who meet the eligibility requirements.
- Flexibility: tax preparation software allows you to sit down and prepare your tax return at any time. No need to wait on the availability of others.
- User-friendly: tax preparation software prompts you on what to input and does all the math for you.
- Available online: it can be accessed from anywhere, all you need is an internet connection and a computer.

Disadvantages
- No human touch: there is no one to verify your return, advise you on credits/deductions, or answer your questions. Certain elements of tax filings, especially credits and deductions, are not always clear or easy to understand.
- Potential for unintentional errors: tax preparation software allows you to input anything, whether it applies to your tax situation or not.
- Not good at handling complex situations: most software available to taxpayers is designed for simple returns and doesn’t do well with complex situations.
- Time and stress: it may sound simple to use a tax software program, but it still requires an individual to sit down and spend time entering and verifying everything. It can be stressful as some taxpayers question if they are doing it correctly.
Hiring a CPA as an alternative to using a tax software program
While using tax preparation software may sound easy, some taxpayers don’t want to bother with the stress and time associated with preparing a tax return. Instead, you could hire a CPA to help prepare, advise and file your tax return.
A CPA is a tax expert who knows the ins and outs of filing taxes. They are available to answer any questions you may have, advise on how to maximize your tax return, and ensure that you are utilizing any credits/deductions. Most importantly, they take all the stress away from tax season by handling the entire process for you.
Hiring John Freeman CPA to file your tax return takes the guesswork out of your tax return and helps avoid unnecessary audits, fines or penalties. Contact us today to learn more about how we can help you prepare your tax return.