MW Ask these 3 questions before deciding whether to do your own taxes or hire a pro
Andrew Keshner
Tax filing season starts Jan. 26 and it's the first with Trump big new tax law on the books
With Trump's new tax law, is it money well spent paying for a pro? The answers beyond "it depends."
To hire a tax preparer or not? That's the question when it's time to file income taxes with the Internal Revenue Service.
The answer is rarely straightforward, and this year it's even trickier.
It's the first tax season with President Donald Trump's massive new tax law. There are new deductions and new strategies to consider. There's a worry that customer service will be shaky at the scaled-down IRS. Yet for people who turn in accurate returns, there's the chance of jumbo-sized refunds.
So is this the year for the do-it-yourself crowd to find an accountant?
"This is one of those tax seasons where paying a few hundred dollars for professional preparation can easily pay for itself - either through a larger refund, avoiding missed deductions or preventing costly mistakes," said Tom O'Saben, director of tax content and government relations with the National Association of Tax Professionals.
Yet for people with straightforward finances largely limited to wages and easy-to-understand tax breaks, "there's no true value in paying an accountant $500+ to file your return, unless it brings you peace of mind," Bill Shafransky of Moneco Advisors said. "If you're comfortable doing it on your own, have at it."
For extra twists and complications, like income from a business, going pro might be the better idea, Shafransky added.
The IRS starts processing 2025 returns next week. MarketWatch readers seem split on their next move. Almost 52% of people said they'd do it themselves, according to a poll on X. Instagram followers were evenly divided.
The answer that "it depends" may not be the clear-cut response that people are seeking. In this price-conscious economy, consumers definitely want to know what their money gets them. Here's a 2026 guide to deciding whether it's worth paying for a tax professional.
How complicated are your returns?
First, the basics: What about wage earners who take commonly-used tax breaks like the standard deduction and do their own taxes already? Do-it-yourself tax prep is still likely a straightforward task for them, several experts said.
Then there are the new tax breaks, such as the deductions for tips and overtime pay. Schedule 1-A will be the tax form to claim these breaks.
Only certain jobs are eligible and there's special formulas to identify what portion of overtime pay is deductible, said Janet Holtzblatt, senior fellow at the Tax Policy Center.
This year, the IRS is being lenient with employers who can't calculate all the overtime and tipped pay. That puts the onus on the worker to provide accurate amounts.
"It's going to be complicated for individuals to understand the new deductions. But it's honestly going to be difficult for preparers too," Holtzblatt said.
Of the new deductions, the $6,000 senior bonus seems the most straightforward to claim, Holtzblatt said. Deductions for car-loan interest and overtime pay seem the most complicated, she said.
This year tax filers have to ask themselves if any new rules impacting their own situation are worth the chance of a mistake - or the anxiety, Holtzblatt said.
If the new rules are a gray area, it's more clear cut elsewhere. Tax returns with business income, partnership income, potential self-employment, rental income and sophisticated investments are strong reasons to find an expert.
With complex taxes, "hiring a pro is well worth the price," said Daniela Jones of Intrinsic Wealth Counsel. They can navigate the laws when preparing the return and afterwards if the IRS raises questions. "A licensed tax professional can represent you if you get audited, and if that happens, they will have more than paid for the cost incurred to prepare the tax return."
Accountants, enrolled agents and tax lawyers can represent taxpayers in front of the IRS.
How much should I expect to pay?
People are spending about $290 and 12 hours on their tax preparation, the IRS estimates. The average masks a wide price range.
Going the software route may be cheaper. TurboTax's "expert assist" offer, starts at $39-$159 and additional charges for state returns. This year, Intuit's $(INTU)$ TurboTax is offering in-person assistance through stores and offices too. Meanwhile, H&R Block's $(HRB)$ online offer starts at $35, with an additional charge on state returns. Its full-service offer starts at $89.
Both companies told MarketWatch their software and in-person assistance will be ready to help customers tackle the new tax law's details and fine points.
The two tax-prep companies have free filing options for simple returns. The IRS Free File program is another route, though restricted to households under $89,000.
When it comes hiring a professional, people should generally expect to pay around $200 to $300 for the simplest of tax returns, said O'Saben. The services for a "typical middle-income household" would be in the $350-$600 range, he said. That could include income from several sources, multiple tax breaks and possible itemizing.
For complicated returns, expect to pay over $700, he said. That could include self-employed income, investments and itemized deductions where the rules are changing because of the new law. For instance, the revamped $40,000 deduction for state and local taxes is an itemized deduction.
Read also: Homeowners: The SALT deduction is going up to $40,000. Here's how to get the most out of it.
Over one-third of accountants charged a fixed fee, according to a survey from Ignition, an operations platform for service-based businesses. Nearly one quarter offered a starter fee with add-on prices for more complicated returns, the survey said. Very few went with an hourly rate.
Just filing a return, or in need of something more?
Taxes are a source of stress for many people, even if they have a straightforward return. For these filers, the peace of mind is worth the cost. But with a professional, a client is also paying for their strategy.
The new tax laws are filled with rules that phase away deduction eligibility based on income, said Robert Persichitte, an accountant and financial planner at Delagify Financial. He has been talking a lot with clients about the upcoming $40,000 deduction for state and local taxes.
"If your preparer is available to answer questions and do more in-depth planning, you should expect to pay more," he said. Anyone who wants to get the most of the changes by themselves will have to do a lot of extra homework, Persichitte said.
Shafransky agreed. "It's not so much that DIY software can't handle it or you'll make a mistake, it's that you might miss out on a tax-savings strategy for no other reason than you just didn't know it existed."
-Andrew Keshner
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January 20, 2026 07:00 ET (12:00 GMT)
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