Side by side
| Tax software | Local preparer | |
|---|---|---|
| Cost | Lower; often free for simple returns, with paid tiers for schedules and state returns | Higher; priced by the work the return needs |
| Your time | You enter every item and answer every question | You gather documents and answer questions; the preparer does the entry |
| Arithmetic | Reliable | Reliable |
| Judgment calls | You make them, guided by prompts | The preparer makes them with you and can explain why |
| Massachusetts-only items | Covered if you answer the prompts correctly | Checked as part of preparing the Form 1 |
| New federal deductions | Prompts for them; eligibility is your call | Eligibility checked against your records |
| When a letter arrives | You respond yourself, or buy a separate service | You call the person who prepared the return |
| Continuity | Carries forward last year's data | Same person knows your history |
What software does well
Modern software is good. It imports W-2s and brokerage forms, carries forward last year's data, and does not make arithmetic mistakes. For a return that is mostly data entry, it is fast and inexpensive, and paying someone else to type the same numbers is hard to justify.
Software is also honest about what it is: a tool that asks questions. The quality of the return depends on the quality of the answers.
Where software is more likely to go wrong
The errors we see on self-prepared returns are rarely arithmetic. They are answers to questions: whether a repair was really an improvement, whether overtime was the kind the new deduction covers, whether a move date makes someone a part-year resident. Massachusetts adds its own layer, because the Form 1 now diverges from the federal return on several of the most-discussed 2025 changes.
- Carrying federal-only deductions (tips, overtime, car loan interest, the senior deduction) into Massachusetts thinking
- Missing Massachusetts-only deductions: rent, commuting, 529 contributions
- Missing the senior circuit breaker credit
- Depreciation on a rental set up wrong in the first year and repeated every year after
- Cost basis missing or wrong on older investments
- Part-year residency dates and income split by state
About the promises software companies advertise
Software companies advertise accuracy and refund pledges. These are contractual terms, so read what they actually cover. Many pay certain penalties and interest if the software's calculation was wrong, not if the information you entered was wrong or a judgment call was mistaken. They are useful, but they do not replace getting the answers right.
A preparer cannot promise an outcome either, and you should be wary of any who do. The IRS specifically warns against preparers who claim they can get larger refunds than others.
Ways to combine the two
- 1.Use software in routine years and a preparer in the year something changes.
- 2.Prepare your own return and pay for a review before filing.
- 3.Use a preparer for the first year of a rental or business, then continue with software once the setup is right.
- 4.Keep a preparer's contact for letters, even if you file yourself.
Where we come in
We prepare federal and Massachusetts returns and review self-prepared ones. If last year's software return is bothering you, we can look at it and tell you whether anything needs amending. Before we start, we give you a scope and a price in writing.
Figures on this page were checked against the IRS and Massachusetts sources listed alongside on 28 Sep 2026. They change — confirm the current amount before relying on one.
General information for owner-led businesses, not advice for your specific situation. Tax and accounting rules change, and how they apply depends on facts particular to your business. Talk to us — or to another qualified professional — before acting on anything here.
