Is Filing Your Own Taxes Good or Bad?

Amanda Peterson

February 28, 2025  •  3 Minute Read

Taxes

The short answer — If you understand the ins & outs of taxes, then doing your own is a smart way to save. If not, it's best to bite the bullet and hire a professional. Tax season can be stressful, but for many, the option of filing taxes independently offers a sense of control and the opportunity to save money. While DIY tax filing may work for some, it’s important to weigh the pros and cons before diving in. Here at CreditSoup, we have an overview of what you need to consider when deciding whether to file your own taxes.

Pros of Filing Your Own Taxes

Cost Savings

One of the most significant advantages of filing your own taxes is the money saved by avoiding the fees charged by tax professionals. Tax software is often affordable, and in some cases, free for simple returns. If you have a straightforward tax situation, such as a W-2 income and few deductions, filing yourself can be a cost-effective solution.

Complete Control

When you file your taxes independently, you maintain full control over the process. You can double-check every form, enter the information exactly as you want, and make sure everything is accurate before submission. This can provide peace of mind, especially if you're familiar with your financial situation.

Learning Experience

Filing your own taxes can be a learning experience that helps you better understand your financial picture. It offers an opportunity to get familiar with tax laws, deductions, credits, and tax planning strategies. This knowledge can be useful in future years when making financial decisions.

Convenience

Filing taxes online using tax software can be done from the comfort of your home, at your own pace. With e-filing, you can submit your return quickly, often receiving your refund faster than with paper filing. Additionally, most software providers allow you to save and revisit your return if you need to make adjustments or review information.

Cons of Filing Your Own Taxes

Time-Consuming

Even with user-friendly tax software, the process of filing taxes can still be time-consuming. Gathering documents, entering information correctly, and understanding the forms can take hours, especially if your financial situation is complex. If you’re unfamiliar with the tax code or have a complicated return, this time commitment can quickly add up.

Risk of Error

Tax filing is intricate, and even a small mistake can lead to issues with the IRS, including delays in processing or penalties. Common errors like incorrect Social Security numbers, missing deductions, or forgotten credits can cost you money or cause headaches later on. While tax software can help catch some mistakes, it’s still easy to overlook key details, especially if you’re not well-versed in tax laws.

Limited Advice

When you file taxes yourself, you don’t have a tax professional to provide guidance on complex tax situations. For instance, if you're self-employed, have multiple sources of income, or are navigating investments and capital gains, a professional’s expertise could save you time and help you maximize deductions. Missing out on expert advice could result in a lower refund or a larger tax bill than necessary.

Lack of Support in Case of an Audit

If the IRS audits your tax return, handling the situation can be overwhelming without a tax professional. Professionals often offer audit support, helping you navigate the process and represent your interests. If you file on your own and face an audit, you might not have the same level of support and guidance, which could add stress and confusion.

Consider Using a Credit Card to Pay Your Taxes

If you find yourself owing taxes and don’t have the cash on hand to pay by the deadline, using a credit card to pay your taxes can be an option. Paying taxes with a credit card can help you avoid IRS penalties and even earn rewards, but it comes at a cost. Processing fees and high interest rates can add up if you don’t pay off the balance quickly. CreditSoup has some excellent choices for secured cards to help build your credit this tax season. Explore Your Card Options

Is Filing Your Own Taxes Right for You?

Ultimately, the decision to file your own taxes comes down to balancing cost, time, and the potential risks along with your specific financial situation. While it can be a rewarding process, it’s important to understand both the advantages and challenges before jumping in.