Software Expertise

• Tax software programs ask a series of detailed questions and use your answers to automatically determine maximum deductions, qualifying credits and taxable income. The software calculates your adjusted gross income, taxes due and eligible refunds. Once you are satisfied with all of the entries, you sign and submit your federal tax return electronically.
  
  When you prepare your own taxes, you have to do your own research and calculations to determine your taxable income, taxes due and refund amounts.
  
  

Confirmation

• Electronic filing through the Internal Revenue Service (IRS) website or through a company-owned website provides you with automatic confirmation that your federal tax return was received.
  
  When you prepare and submit your own tax return through the mail, you must check with the IRS to see if your return was processed or wait until you receive a refund or a notice in the mail. There is no automatic confirmation process.
  
  

Quick Refund

• Since filing a tax return electronically does not involve lengthy mail processing, your tax refund is processed quickly. Electronic filing with the IRS or through an online tax agency provides you with the option to have your tax refund automatically deposited to your bank account. As a result, there is no need for your refund to travel through the mail either.
  
  

Technical Problems

• An advantage to preparing your own taxes is the reality that technical problems can occur with electronic filing. Failure to save data, computer glitches and malfunctioning software force you to repeat the electronic filing process over again. If you wait until the tax submission deadline and technical problems arise, you could be hit with tax penalties and fees for filing a late return.