Can I Prepare My Own Taxes?
Can I Legally File My Own Taxes?
Yes. The IRS allows anyone to file their own tax return, and you don’t need to be an accountant to do it. If you have a basic understanding of your income and expenses, and your financial situation isn’t too complicated, it’s perfectly acceptable—and often recommended—to file your own taxes.
Who Should Consider Doing Their Own Taxes?
Doing your own taxes might be a great option if you:
Have a simple financial situation:
- Only have one or two W-2s
- Don’t own a business or rental property
- Don’t have large investments or multiple income streams
Take the standard deduction:
If you’re not itemizing deductions and simply take the standard deduction, your return will likely be very straightforward.
Are comfortable using technology:
There are user-friendly platforms like TurboTax, H&R Block, FreeTaxUSA, and Cash App Taxes that guide you step-by-step through the process.
Want to save money:
Tax preparation services can cost $150 to $500 or more depending on complexity. Filing your own taxes could cost $0–$60 if you qualify for free filing options or use affordable software.
When Should You Hire a Tax Professional?
Even though you can file your own taxes, there are situations when hiring a tax preparer or CPA is the smarter move. You might want to seek help if:
You have a complex tax situation:
- Self-employment or business income
- Multiple investments or cryptocurrency transactions
- Own rental properties
- Have out-of-state income or foreign assets
You had a major life event:
Getting married, divorced, starting a new business, buying/selling a home, or receiving an inheritance can all impact your tax liability.
You’re being audited or owe back taxes:
A tax professional can help you navigate communication with the IRS and avoid mistakes.
You simply don’t feel confident:
If you’re unsure about filing correctly or fear missing deductions, it’s worth getting expert guidance.
Pros of Preparing Your Own Taxes
Save Money
DIY filing can be free or low-cost compared to hiring a pro.
Learn More About Your Finances
Filing your taxes helps you understand how much you earn, what you owe, and where you can save.
File on Your Own Schedule
No need to schedule appointments—just file from your couch, day or night.
Faster Refunds
E-filing through IRS-approved software usually results in faster processing and direct deposit refunds.
Cons of Preparing Your Own Taxes
Risk of Errors
Missing a form, forgetting a deduction, or misreporting income can lead to IRS penalties.
Can Be Time-Consuming
Even with software, gathering documents, reading instructions, and checking your return takes time and energy.
No Personalized Advice
Software offers basic help, but won’t answer complex, unique questions the way a tax advisor would.
What You Need to Prepare Your Own Taxes
If you’re going the DIY route, make sure to gather the following documents first:
Income Documents:
- W-2s (employment income)
- 1099s (freelance, contract, or other income)
- Interest and dividend statements
- Unemployment income
- Social Security statements
Deductions and Expenses:
- Mortgage interest (Form 1098)
- Student loan interest
- Property taxes
- Medical expenses
- Charitable donations
- Education expenses (1098-T)
Other Important Info:
- Previous year’s tax return
- Bank account info for direct deposit
- SSNs or ITINs for you and dependents