VITA vs DIY Tax Software vs Hiring a Tax Professional

Every tax season, when people find out I’m a tax preparer, I usually hear one of three things.

• “I’m going to VITA because they do taxes for free.”
• “I bought tax software on sale at Costco, so I’m just going to do my taxes myself and for my family and save money.”
• “I already have a tax preparer who does my taxes every year.”

All three options can work depending on your situation. My goal isn’t to pressure anyone into hiring me. My goal is simply to help people understand the pros and limitations of each option so they can make the best decision for themselves.

Let’s walk through the three most common ways people file their taxes.

Option 1: Filing Your Taxes Through VITA

The Volunteer Income Tax Assistance (VITA) program provides free tax preparation services for qualifying taxpayers. It’s supported by the IRS and staffed by trained volunteers.

Who VITA Is Designed For

• Individuals earning around $60,000 or less
• Students and first-time filers
• People with disabilities
• Taxpayers who need help with basic returns

For taxpayers with simple tax situations, VITA can be a great option because the service is completely free.

My Experience With VITA

I’ve also spent several years volunteering with the VITA program. Through that experience, I’ve helped many taxpayers prepare their returns and understand how the tax system works.

Because of that experience, if someone qualifies for the VITA program, I will often recommend they check there first before hiring me. VITA can be a great resource for taxpayers with simple returns who meet the income requirements.

If VITA can take care of your taxes, that’s great. My goal is to help people make the best decision for their situation, even if that means they don’t need to hire a professional.

Option 2: Doing Your Taxes Yourself With Software

Another common thing people tell me is that they bought tax software and plan to do their taxes themselves.

For some people, this works perfectly fine, especially if their tax situation is simple.

When DIY Tax Software Makes Sense

• A single W-2 job
• No business income
• No rental properties
• No major financial changes during the year

However, tax software can only calculate based on the information entered. If something is misunderstood or a question is answered incorrectly, the software will still generate a return based on that input.

Software also can’t ask deeper follow-up questions about your situation, identify deductions you may not realize apply to you, or help you plan ahead for future tax years.

Many people are also surprised that once additional forms or state filings are added, the final cost of the software can be close to the cost of professional tax preparation.

Option 3: Hiring a Professional Tax Preparer

Some taxpayers prefer working with a professional because they want guidance and peace of mind that their taxes are done correctly.

Professional tax preparers stay current with tax law changes and often complete continuing education each year in order to properly serve their clients.

Benefits of Working With a Professional

• Identify deductions and credits you may miss
• Reduce filing errors
• Explain tax rules that apply to your situation
• Provide guidance for future tax planning
• Help if the IRS sends a notice

Professional tax preparation software is also more advanced than most consumer or prosumer software and allows preparers to review more complex situations and explore different tax scenarios.

My Approach

My approach is simple. I want people to choose the option that makes the most sense for them.

If someone qualifies for VITA, I’ll gladly point them in that direction so they can file their taxes for free.

If someone wants to prepare their taxes themselves, I’m always happy to give some general guidance about what to watch out for.

And if someone decides to work with me, they’re not just paying for tax preparation. They’re also getting advice and planning for future situations like starting a business, preparing for college expenses, or navigating major life changes.

Irini’s Final Thoughts

There isn’t one right way to file taxes. Some people benefit from free tax assistance programs, some are comfortable filing their own returns, and others prefer the guidance of a professional.

The most important thing is making sure your taxes are accurate, compliant with the law, and optimized for your situation.