Should I use TurboTax or hire a tax professional?

This is my first time filing taxes. Can somebody tell me which is better to use “TurboTax” or “Jackson Hewitt?”

TurboTax is a program where you prepare your own tax return, yourself, most likely for free. Jackson Hewitt is one of many commercial services that will do it for you – for a fee.

Which one is best is the same question as if you ask about changing a flat tire on your car. You can certainly change a flat tire yourself, and many people do. There are tools and instructions, and it’s free. However, some people hurt themselves and/or damage their cars while trying to change flat tire. Instead, you can call AAA or some other service, and they will do it for you and charge you for the service.

Similarly, if you are good with computers and with numbers, you may successfully do your own taxes with TurboTax. If you’re not that confident – hire a company.

As far as which company – it’s a very different question. All large companies, including Jackson Hewitt, have the same problem: you’re served by a random person who you do not know. Some people who work there are brilliant and diligent, and some are incompetent and lazy. It’s a lottery – you may get lucky and get a good person, or you may luck out. Comparing them by price is pointless. Some of these companies provide various guarantees – those can be useful.

I have seen hundreds of tax returns prepared by large companies. Most were done properly, but some were horrible, and I had to redo them for my clients. In small companies, you get to know the person who does your tax return. This person still may or may not be good, but once you check him or her out, you have some comfort. Also, make sure to check out my article about Choosing CPA, Enrolled Agent or other Tax Professional. Good luck!