I'm going to add a little wisdom here based on my experience. I've been a tax preparer for 14 years, completed over 3500 returns, and taken more than 500 hours of training. I've had experience with various types of tax organizations. Deciding who to go to to prepare your taxes can be confusing. Let's change that! Here is an explanation of the differences of a CPA, tax preparer, and an EA -- and -- some information about how each of them work. I hope this will help you pick the one that best works for you! ~ An Enrolled Agent (EA) is a designation by the IRS that the individual has passed a knowledge exam on taxes that allows the EA to represent a taxpayer infront of the IRS. An Enrolled Agent may be a tax preparer or a CPA. Not all tax preparers or CPA's are Enrolled Agents. ~ A CPA is Certified Public Accountant. They received this designation by passing knowledge exams on numerous accounting areas. Many CPA's specialize in a specific area of accounting. If you go to a CPA make sure they specialize in taxes. Not all CPA's specialize in taxes or are Enrolled Agents. The CPA must be an Enrolled Agent to represent you infront of the IRS. ~ Tax preparers are trained to prepare taxes. Often they have a educational background or work in accounting but not necessarily. Their knowledge varies based on the number of years they have prepared taxes and educational courses they have taken. Tax preparers at H&R Block begin with a basic training course of 66 hours of class time plus additional hours for updates on new tax law changes and on-the-job training hours. Students of the basic training course must pass a final exam to qualify to work for H&R Block. Experienced H&R Block tax preparers are required to complete a minimum of 30 hours of training each year plus additional hours for updates on new tax law changes. Many tax preparers at H&R Block and smaller tax prep firms are Enrolled Agents. ~ H&R Block charges are determined by the forms used and what is filled in on the form. If you require H&R Block to do bookkeeping (you know that brown bag of receipts) they will charge an additional hourly fee. ~ Most CPA's charge on an hourly basis. From my personal experience the cost of going to a CPA is about 2X the cost of going to H&R Block. Some local firms are even less but may not have an EA or year-around office to help if there is a problem. ~ If you go to H&R Block you will sit with a tax preparer as they prepare your return. The preparer will ask lots of questions, answer questions, and make suggestions for future tax savings. Unless there is a complex tax issue that needs to be researched or missing information, the preparer will complete your return while you are there and you can take it with you when you go. ~ If you go to a CPA they may have you sit with them as they prepare and complete your return -or- they may just have you leave the tax information and call you to pick-up the return when it is completed. ~ Many CPA's hire tax preparers such as myself (often current or former H&R Block preparers) to complete the return. The CPA reviews the completed return and signs it as the preparer and presents it to the client. This is very common in our area especially with larger accounting firms. ~ Tax laws are complex and change each year. I've amended returns prepared by individuals, H&R Block, other tax prep firms, and CPA's. Anyone preparing your return can make a mistake. ~ If you prepare your own taxes on-line be sure to print a copy for your records. The on-line programs are great for simple returns (such as those with just W2's and interest). ~ If you want to purchase tax software Turbo Tax and Tax Cut are the most popular. Be sure to print a copy of your return for your records. The software is a great choice for a return that is not complex and if you are willing to take the time to research items that you are not sure of. ~ If you choose to go to H&R Block or a smaller tax firm call and request an appointment with an experienced preparer and let them know you would like a preparer that will spend time reviewing and explaining your return in detail. They will schedule you with a preparer that meets your needs if they know when you call for an appointment. ~ To find a good CPA or tax preparer ask friends and family for recommendations. Ask them why they like their preparer and see if it matches what your looking for. If you find a someone you like then call next year to schedule an appointment specifically with that person. As for the original poster ... from her explanation they have a rather simple return. If she felt confident to do her own return she could go online and do it. It sounds as though she wants to learn but would like some help this year so going to a professional might be a good idea. Since the return seems to be rather simple I think an experienced tax preparer would be less expensive than a CPA. I'd suggest calling for an appointment in advance and requesting that the appointment be scheduled with an experienced tax preparer that will be willing to answer lots of questions.

bob_cville brings up an important point which the rest of us had overlooked. As more and more people inherit 401k's and IRAs, it is critical to understand that one needs to make the correct decision in such a case, BEFORE the funds are distributed. For our parents this was not an issue, the grandparents of Boomers didn't have these type of accounts. However, for us and succeeding generations, it is incumbent upon us to be aware not only of the current laws, but any future changes that will made in those laws by Congress. If you are inheriting any portion of an IRA, it's important that you know whether or not the owner was taking distributions. Once distributions are begun, they MUST be continued by the heirs. An IRA passed to multiple heirs may be split in any proportion the owner has specified. The heirs are best served by opening up a new IRA. Titling of this new IRA is very specific to avoid IRS problems. I've excerpted part of a WSJournal article on this issue: "...Inherited IRAs don't work like regular IRAs. If you inherit an IRA from anyone other than your husband or wife, you can't roll it into your own IRA. And you can't consolidate IRAs you inherit from different people into one account. So, if the heir had withdrawn the assets from a parent's IRA and deposited them into her own IRA, she would have undone the inherited IRA, making all its assets taxable. She also would have to remove any assets she deposited in her IRA above her allowed IRA-contribution limit for the year -- $5,000 if she's under 50, or $6,000 if she's 50 or older -- to avoid further penalties. But it appears that the account in question was left as is, except for being improperly titled. Thus, the error should be considered an administrative one that can be fixed. The reader would need to retitle the IRA so it's clear that the owner died and that she is the beneficiary. Ed Slott, an IRA consultant in Rockville Centre, N.Y., recommends using this format: John Smith IRA/ Deceased 1/1/2009/ FBO Mary Smith as beneficiary. (note: FBO means "for the benefit of") Make sure that the financial institution gets the titling right not only on the statements it sends to you, but also on the internal records it uses for reports to the IRS, he says. Some large IRA custodians use the beneficiary's name on the statements sent to him or her, but use the formal titling (as in the "John Smith" example, above) on the information it sends to the IRS to avoid confusing beneficiaries. After you have retitled the inherited IRA, you can stretch out withdrawals from the account across your lifetime, rather than being forced to withdraw the funds sooner. That gives you a chance to extend the time that tax-deferred earnings can accrue, possibly increasing your inheritance."

Another reason to work things so that there are no refunds, especially large ones ... ... originally, to avoid making interest-free loans to the government(s), via the IRS, needy though they are, being darn near broke. More recently, it appears ... to avoid scammers being able to make off with a substantial bundle ... of *your* money! There seems to be somewhat of an epidemic of the "Integitry-being-obscured-by-Dollar-signs"disease (and it's O.K. to substitute any other currency of your choice). What's this of being required to report refunds as income ... it was your income in the first place, that was reported last year, and too much of it forwarded to the IRS, back then, no? So it's actually your income that was previously reported and included in tax calculations earlier, right? Surely you shouldn't be required to pay tax again on the same dollar of income! ole joyfuelled ... who hopes to be able to pay no, or only a smidgeon, of income tax

Too many conversations going on here, but I will convey MY experience: My mother and father each had an IRA naming each other as beneficiaries. When my mother died first, my father inherited my mom's IRA--now he had 2. He changed both IRAs beneficiaries to the 3 children. We each had 33 1/3%. Upon his death, the IRA converts to a "Beneficiary IRA" which has different rules. Each of us kids could have taken a lump sum or spread it out over time. I didn't need the $$ so I receive an annual payment from each IRA. The number is based on MY age (minimum deistribution). I designated a % to be withheld for my federal taxes and I receive a 1099R each year. As executor, I would have been in charge of submitting the death certificate to the IRA bank, but each of the siblings handled their portion the way they wanted. Hope this helps.