DIY tax software has gotten sophisticated enough to handle the majority of individual filing situations accurately — the key is knowing what your specific tax situation actually needs before picking a tier.
What Good Tax Software Should Do
- Walk through a guided interview rather than requiring you to know tax form numbers
- Import W-2s and 1099s automatically where supported
- Check for common deductions and credits you might miss manually
- Flag likely errors before you file
- Support e-filing directly to federal and state agencies
Simple vs Complex Returns
A straightforward W-2 employee with no investments or business income can usually use a basic tier confidently. Self-employment income, rental property, investment sales, or multiple income streams generally warrant a more complete (and more expensive) tier or professional help.
When to Use a Professional Instead
If your situation involves significant business complexity, multiple state filings, or major life changes (property sale, inheritance, major investment events), the cost of a professional often pays for itself in deductions or errors avoided that software might miss.