Who does your taxes?  Do you, or do you trust someone else?  If you have been on both sides of this question, then you know the drill.

A Warm Body.  The real person who sits across from the desk from you asking questions of all types gives a sense of security in that they know what to ask and how to perform the return properly.  But, the secret is that most of these people are using something that you can too:  software.

However, there is something to be said for a personal relationship with your tax preparer, because as they get to know you, they might be able to find a deduction or two that tax software might not be able discover.  It is not likely, but it might happen.  Also, some of these businesses (and they are in the business to make money) use enticements to get you to choose them as your tax preparer.   Currently it is the ability to get a loan against the return that you will receive.  One of these companies is offering to place the money onto a pre-paid MasterCard so that you can begin spending it right away.

The down side of using a real person for tax preparation services is that you will pay more.  About twice what the next option will cost you.  Be sure to ask for an estimate before they do the work.

Software.  If you do your taxes yourself, you have two options.  First, get all of the forms and do it manually.  Talk about time-consuming and confusing!  No one should have to go through that any longer because now you can prepare your own taxes with software on your PC.

This software walks you through ALL of the steps that you need to take to input your data and then it prepares your taxes and forms and helps you file them with efile or print them out so that you can send them in through the postal service.  The software option comes in two forms.  First is the standard, go-to-the-store-and-buy type that comes in a box with a CD that you install on your PC.  The second way is to logon to one of the websites of the companies that provides this service.  The first option has an advantage in that if your Internet connection goes out, you can still prepare and file your taxes.  The second option could leave you high and dry if your Internet connection fails.

Also, there is one other caveat that could torpedo your tax preparation efforts:  a crashed PC.  Which gives credence to the first method:  having a real person do them for you.

Whether you choose to have someone do your taxes for you or use the software option, doing your taxes has become easier because of technology and the ability to efile.  Also, your refund comes sooner with efile.  There is no wrong answer for choosing the route to go.  It is all based on your comfort level with these options and how much you are willing to pay.