This study uses 1988 Individual Public Use Panel data to extend and re
examine the determinants of paid tax preparer use through inclusion of
a variable capturing the importance of income-related dollars associa
ted with schedules. Results of legit estimation of the reduced-form mo
del for paid tax preparer use establish that income-related dollars pe
r schedule, as measured by the absolute positive income, are significa
nt and positively correlated to the likelihood of using a paid tax pre
parer when filing schedules B or E. Estimates reveal that the likeliho
od of using professional tar assistance increases by 4.0% and 1.6% per
$10,000 of income-related dollars, respectively, when using Schedule
B and Schedule E. Support was found for examining variables measuring
dollars in logarithmic form and for controlling for type of 1040 form
filed. Results contrary to those of earlier studies were observed for
the significance of total positive income, marginal tar rate, measure
of dependents, and Schedule A.