TurboTax is a fine product for simple tax situations. But for a significant portion of Houston taxpayers, the money saved on prep fees is dwarfed by the money left unclaimed. Here's an honest breakdown of when software is enough and when it's costing you.
If your tax situation looks like this — one W-2, standard deduction, no investments beyond a basic 401k, no self-employment income, no rental property, no major life changes — TurboTax will likely get you to the right answer. The IRS estimates that about 40% of individual returns fall into this category. For these filers, the $60–$120 TurboTax costs is reasonable and the software will handle it correctly.
The problem is that software asks you what you know to ask about. It doesn't know what you don't know. TurboTax won't prompt you to think about the SEP-IRA you could have opened last year and contributed to before April 15th. It won't notice that your home office percentage is wrong. It won't restructure your entity to reduce self-employment tax. It won't realize that your rental property's depreciation schedule has an error from 3 years ago that's been compounding. It presents a list of deduction categories — and if you don't know to enter something, the software skips it.
A study by the Government Accountability Office found that paid tax preparers consistently found additional deductions and credits compared to self-prepared returns in identical fact patterns. Our experience at Michelet Financial bears this out: clients who come to us after years of self-filing frequently have amendment opportunities in prior years — money the IRS is still holding that they're entitled to claim. We've recovered $5,000–$15,000+ in prior-year amendments for clients who thought TurboTax had handled everything correctly.
People focus on the $150–$350 it costs to have a professional prepare their return and think "I can save that by doing it myself." But the actual comparison is: what did self-filing cost you in missed deductions? If a professional identifies $3,000 in additional deductions you missed, and your effective tax rate is 24%, that's $720 in additional refund — minus the $200 prep fee means you're $520 ahead. The prep fee becomes the least important number in the analysis.
Self-employment income of any kind. Rental property income. Investment sales (especially crypto). Business ownership. K-1 income from partnerships. Foreign income or accounts. Major life events (divorce, inheritance, sale of a home). Prior years you self-filed and aren't certain about. In any of these situations, the potential value of professional preparation far exceeds the cost. Call (225) 396-5511 for a free 30-minute consultation.
Big Ass Tax Returns — serving Houston, TX and surrounding areas.
Call (225) 396-5511Michelet Financial charges $150 for individual returns and $350 for business returns. This is competitive for Houston and far less than large CPA firms. A free 30-minute consultation is included before any commitment. Call (225) 396-5511.
Yes — frequently. A professional asks questions the software doesn't, knows what deductions apply to your specific industry and situation, and can identify strategies (like retirement account contributions or entity restructuring) that software never surfaces. Prior-year amendment opportunities are particularly common among long-time self-filers.
An amended return (Form 1040-X) corrects errors or claims missed deductions from a previously filed return. You can amend returns for the past 3 years. If you self-filed in recent years and had self-employment income, rental property, or significant business expenses, an amendment review is often worth the time. Michelet Financial offers amendment services — call (225) 396-5511.