Maybe filing your Form 1040 or 1040-NR is as simple as reporting your W-2 wages and claiming the standard deduction. Or perhaps it’s more complicated because you sold a rental property, and have large investment gains and losses? Or you're self-employed and file Schedule C. No matter how simple or complex your return is, if you’re like many filers, you’d rather pay to have someone else prepare your return.
You also need to remember that there are lots of tax changes for 2025, thanks in part to last July's "One Big Beautiful Bill" ("OBBB"). They include a new $6,000 senior deduction for filers age 65 and older ($12,000 on joint returns), tax deductions for qualified tips and qualified overtime compensation, a deduction for interest paid on automobile loans, a higher cap on deducting state and local taxes and much more.
So it might benefit you more than ever to find a paid tax preparer to help you file your tax return. If you don't have someone you regularly use, you will want to find a tax professional who is qualified and knows the income tax laws, so you don't miss out on any current tax breaks that you are entitled to. At the same time, you will also want to weed out those unreliable preparers that the IRS and the Better Business Bureau are always warning about.
So, how do you find a good tax preparer? There are better ways than searching through the phone book or googling "tax return preparers." Here are tips for choosing someone qualified to help prepare your return.
1. Consider a credentialed preparer
Anyone can call themselves a tax preparer.
The only requirement to prepare a federal return is that the person has a current IRS preparer tax identification number (PTIN). However, preparers have differing levels of skills, education and expertise. Your best bet is to look for a credentialed preparer, meaning someone vetted by the IRS or a state or regulatory board.
The most common type of credentialed preparers are certified public accountants (CPAs), attorneys and enrolled agents. Most people are familiar with CPAs and lawyers. Enrolled agents are licensed by the IRS and must pass a special exam and complete mandatory continuing education. The IRS also has a voluntary annual filing season program for preparers who are not CPAs, attorneys or enrolled agents, and who agree to complete a certain number of continuing education hours each year.
One way to find a credentialed preparer near you is to use the IRS’s online Directory of Federal Tax Return Preparers. It lists the following tax professionals who have active PTINs (lawyers, CPAs, enrolled agents and people who completed the requirements for the IRS’s voluntary annual filing season program, shown in the directory as AFSP — Record of Completion). The list includes the names and qualifications of each person plus their city, state and zip code, but no contact information.
Note: Many non-credentialed (or unregulated) preparers provide outstanding tax preparation service, but you will need to do more due diligence to make sure the person is competent. According to a recent report by the U.S. Government Accountability Office (GAO), in some circumstances, "unregulated preparers can make errors at a higher rate than taxpayers who prepare their own returns." The GAO also found that "unenrolled preparers make errors at relatively high rates compared to other types of preparers on returns claiming refundable tax credits," such as the earned income credit and the refundable portion of the child tax credit.
2. Do your research
There are other things you can do in addition to finding out about a preparer’s credentials. Checking a preparer’s history and reputation is a good idea, especially if you are looking into someone who is non-credentialed. The Better Business Bureau rates many paid preparers on a letter system — with A+ as the highest and F as the lowest. If you’re extra diligent, you might want to check with the CPA or attorney licensing regulatory board in your state.
3. Ask the right questions
Once you think you’ve found a preparer, there are several questions you should ask them.
- Ask to see their up-to-date credentials. If the person isn’t credentialed, inquire about education, experience and what he or she does each year to keep up with the ever-changing tax laws. Most preparers are non-credentialed and still provide outstanding tax services.
- Ask upfront about the return preparation fee. Does the person charge by the hour or by return? Is there a minimum fee with add-ons, depending on the number of schedules needed and the return’s complexity?
- Ask if the preparer offers electronic filing services if you want your return e-filed. The IRS will process e-filed returns quicker than returns filed on paper. And if you are seeking a refund, the IRS will pay the money faster if you e-file and you request direct deposit.
- Check that the preparer will be available after the filing season ends. You'll want to know that you will be able to contact the person and that he/she will respond in the event any issues come up after filing your return. For example, you might want to call your preparer if you receive a math-error notice or other letter from the IRS alerting you to a mistake made on your return.
- Review your completed return before signing it. If something doesn’t look right, ask questions. If your return claims certain refundable tax credits or head of household filing status, ask whether the preparer has complied with the required due diligence rules. And if the refund amount looks to good to be true...well, you know the adage.
4. Tax preparers to avoid
Although most preparers are trustworthy and obey the rules, there is always that subset of people who like to play fast and dirty. Walk away if you see or suspect anything suspicious. Here are examples of egregious preparer misconduct:
- The preparer bases his or her fee on a percentage of your refund.
- The preparer asks you to sign a blank return.
- The preparer wants to file the return without your review.
- The preparer won’t sign the return before filing. This last one is a big red flag. The IRS calls these people “ghost preparers” and warns people to stay away from them. All paid preparers must sign their clients’ returns and include a PTIN on the form.
Sniffing out problem preparers is not an easy task for the IRS, so each year the agency urges taxpayers to report these people. If you believe you are a victim of preparer misconduct, you can use Form 14157 to report them to the IRS.
5. Free options for filing your tax return
Many people don't want to pay a preparer to file their tax return. Instead, they may pay for online tax software or decide to prepare their returns themselves. But certain filers have options to have their return prepared and filed for free. Here are a few alternatives:
- The IRS's Free File Program. It's a partnership between the IRS and tax preparation companies that lets low and middle-income individuals with adjusted gross incomes (AGI) of $89,000 or less use free online tax software to prepare and electronically file returns. Note that some firms set lower AGI thresholds. Find out more on the IRS website.
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IRS's Volunteer Income Tax Assistance (VITA) and Tax Counsel for the Elderly (TCE). These two alternatives are for seniors and low-income individuals, including taxpayers with limited English proficiency. Note that most of the TCE sites are operated by the AARP Foundation's Tax Aide Program. VITA and TCE volunteers who prepare returns must take and pass IRS tax law training classes.
Find out more on the IRS website. - MilTax. This free tax preparation and filing service for eligible military members is offered through Military OneSource. There are no income limits.
