Tax-preparation services are like those auto tune-up centers at malls—except they’re good with numbers. A tax-prep service takes your tax-related paperwork, fills out all those scary tax forms for you and then files the paperwork after you review and sign a release with the IRS and state tax departments.

Most people turn to a tax-preparation service for three reasons:

• Efficiency —The tax laws are complex, so doing your own returns can be difficult, time-consuming and stressful—especially as the due date nears. You also don’t want to make mistakes.

• Accuracy —Under the tax laws, you may qualify for a whole bunch of credits and rebates (tax breaks the government gives you if you qualify) and deductions (tax breaks you can take for certain expenses). You may be unaware of these and wind up overpaying what you owe.

• Cost —The charge for a tax-prep service is relatively low compared with the services of a certified public accountant and other tax experts.

The fee charged by a tax-prep service varies depending on the firm and complexity of your federal and state returns. Most base their fee on how many lines of a tax form must be filled out or the number of forms.

Generally, you can expect to pay a few hundred dollars for one-on-one service. But to compete with the popularity of tax-prep software, many services will now let you do your own taxes online at their sites for $15 to $60—or they will provide online handholding for $70 to $100.

Want to Know More?

• Should You Use a Tax-Prep Service?
• Choosing a Tax-Prep Service
• Grilling Guide: Questions to Ask Tax-Prep Services