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re: At what point did you decide a CPA is worth it over TurboTax?
Posted on 2/28/25 at 11:23 am to fareplay
Posted on 2/28/25 at 11:23 am to fareplay
quote:
If I hire an accountant, I would like the dirtiest one possible that skirts every line for maximum return returns. Sadly, when I interview accountants or CPAs to see if I want to use them, they always seem legit.
Maybe stick with self-filing software, then.
0
Posted on 2/28/25 at 11:41 am to fareplay
quote:
If I hire an accountant, I would like the dirtiest one possible that skirts every line for maximum return returns. Sadly, when I interview accountants or CPAs to see if I want to use them, they always seem legit.
The problem with this is that unless you are self employed there isn’t much you can cheat on. W2 and investment income is pretty straightforward stuff. Also, I’m sure as shite not risking my license to save anyone a dollar. That exam was a major bitch.
Posted on 3/2/25 at 4:08 pm to jordan21210
Yeeeeep owe 19k kill me
Posted on 3/3/25 at 6:40 am to Mingo Was His NameO
quote:
If you’re w2 what does being an MD have to do with anything?
Did you not read the OP? She also has $30k of 1099 plus they have a rental.
But I’m simply stating that if OP’s wife is an MD and he works their income is likely $250k+. At that point and amount of work/ lack of time it’s worth it to pay a CPA $600-1000/ year to do your basic accounting and tax work imo.
Sure most people at say $250k may only have W2 income when they are younger but as you age it’s almost definite that you will acquire some additional streams of income and having a CPA you work with is easier to plan appropriately from the beginning than do it wrong and have to have them fix and change things.
This post was edited on 3/3/25 at 6:41 am
Posted on 3/3/25 at 7:29 am to fareplay
quote:
Yeeeeep owe 19k kill me
Unless you made a decent chunk of change on the rental, y’all must be under withholding on the W-2. $30k in 1099 is a decent amount, but wouldn’t account for $19k in taxes owed on its own. Double check your withholdings. Also, on the state side, make sure you aren’t taxing the rental income to two states. It should only be MA.
Posted on 3/3/25 at 7:33 am to baldona
quote:
But I’m simply stating that if OP’s wife is an MD and he works their income is likely $250k+. At that point and amount of work/ lack of time it’s worth it to pay a CPA $600-1000/ year to do your basic accounting and tax work imo.
Might be worth speaking to a CPA for their honest opinion…and some people may be willing to pay to just not have to deal with it. Still don’t think it’s worth it for someone making $250k 95% through W-2.
I am a CPA, so I suppose it’s different, but my wife is also an MD. If someone came to me with my exact financial situation looking for tax prep, I would recommend they use TurboTax or some other self prepared method.
Posted on 3/3/25 at 8:44 am to jordan21210
Sure if it’s literally that simple of just 1-2 W-2s. I did my own taxes for 15+ years I agree it’s simple. But how often is it that simple for someone making $250k for 10+ years? Most people inevitably get into more complicated situations: 2nd home, 1099 side investment, investments, etc.
Mostly though, I just think most people of that income it’s worth their time to just have a CPA do it for $600-1000 then spend 2-3 hours of their own time doing it.
I’d venture that most people that make $250k spend $1000 on a lot of things dumber than a cpa.
ETA; op is a perfect example again of what I’m saying. There’s a good chance his wife got a new job and instead of selling they rented their old home when they moved. If they had a CPA, a simple email asking for a plan and advice on how to transition would have been simple. Without one, now they are doing their taxes and scratching their head on what the hell to do.
Mostly though, I just think most people of that income it’s worth their time to just have a CPA do it for $600-1000 then spend 2-3 hours of their own time doing it.
I’d venture that most people that make $250k spend $1000 on a lot of things dumber than a cpa.
ETA; op is a perfect example again of what I’m saying. There’s a good chance his wife got a new job and instead of selling they rented their old home when they moved. If they had a CPA, a simple email asking for a plan and advice on how to transition would have been simple. Without one, now they are doing their taxes and scratching their head on what the hell to do.
This post was edited on 3/3/25 at 8:48 am
Posted on 3/3/25 at 9:11 am to baldona
quote:
But how often is it that simple for someone making $250k for 10+ years?
You say something stupid and then argue with the actual experts in almost every single thread on this board.
Posted on 3/3/25 at 9:27 am to baldona
quote:
Most people inevitably get into more complicated situations
Sure.
quote:
2nd home
Not difficult, unless you’re renting it. Just an extra 1098 and prop tax.
quote:
1099 side investment
Not difficult, unless you’re doing day trading, puts/calls/options etc.
quote:
ETA; op is a perfect example again of what I’m saying. There’s a good chance his wife got a new job and instead of selling they rented their old home when they moved. If they had a CPA, a simple email asking for a plan and advice on how to transition would have been simple. Without one, now they are doing their taxes and scratching their head on what the hell to do.
He’s getting free tax input from a CPA, he’s not doing too bad
This post was edited on 3/3/25 at 10:04 am
Posted on 3/3/25 at 10:36 am to jordan21210
I underheld for my W2 because my RSU went up in value quite heavily. It’s on me just find it annoying.
My wife is a W2 MD not a 1099 MD so it’s not super complicated as you said.
My wife is a W2 MD not a 1099 MD so it’s not super complicated as you said.
This post was edited on 3/3/25 at 11:00 am
Posted on 3/3/25 at 10:38 am to baldona
Our income is 95%W2 so the only iffy part is expensing the home in Boston and her 1099. I’m not sure if that’s worth hiring a CPA because I can’t control how much time they spend to find we don’t qualify for any deductions due to our income levels.
Just spent 3 hours this weekend on this. If we hired a CPA at 250 an hour let’s say they are much faster and take 2 hours, that’s $500 which means they have to reduce our tax by 2.5% vs doing ourselves which may be worth
Just spent 3 hours this weekend on this. If we hired a CPA at 250 an hour let’s say they are much faster and take 2 hours, that’s $500 which means they have to reduce our tax by 2.5% vs doing ourselves which may be worth
This post was edited on 3/3/25 at 10:41 am
Posted on 3/3/25 at 11:05 am to jordan21210
quote:
If someone came to me with my exact financial situation looking for tax prep, I would recommend they use TurboTax or some other self prepared method.
I recently had an acquaintance come to me asking about tax prep. He isn't an MD but roughly the same situation as above. I told him he was better off just going through TurboTax but he insisted on wanting a CPA to file.
I told him our minimum fee is $1k. In the end, I gave him the contact info for my previous firm that has a smaller fee.
Some people just want the perceived security of having a CPA file their taxes.
Posted on 3/3/25 at 11:11 am to fareplay
quote:
If we hired a CPA at 250 an hour
At most firms, the bulk of the time spent on the return isn't by a CPA but rather a younger accountant. May times a CPA comes into the picture doing the reviews and final checks. This can change depending on the client and size of the firm though.
Posted on 3/3/25 at 11:36 am to ApisMellifera
Yeah totally get as a business why this occurs. I think we can probably bite the bullet next year (I’m told by the cpas here it’s too late this year) to see what the cost benefit could have been. It’s just hard to understand the gray areas (ex: if I go visit Boston to see friends but also to check if my house is good, can I expense flights meals etc)
Posted on 3/3/25 at 12:16 pm to soccerfüt
But CPAs usually don’t try to get more money back to you
When I used one, they didn’t find all the loopholes and tax breaks that I did
When I used one, they didn’t find all the loopholes and tax breaks that I did
Posted on 3/3/25 at 12:20 pm to dallastiger55
Good point, is the CPA end goal to reduce chance of audit or to maximize savings? I’d like to assume latter controlling for former but never know
Posted on 3/3/25 at 12:22 pm to dallastiger55
quote:
When I used one, they didn’t find all the loopholes and tax breaks that I did
They didn’t find them or they didn’t commit tax fraud on your behalf? Big difference
Posted on 3/3/25 at 12:26 pm to fareplay
quote:
is the CPA end goal to reduce chance of audit or to maximize savings?
That depends, we advise our clients on audit risk all the time. There’s a cost and likelihood of audit with any position you take, and almost every time the audit is going to cost you a lot more than the savings should it happen. Even if your position is upheld, you’re probably going to spend a lot of money defending it.
If it’s not outright fraud and there’s some basis in a position, we pursue those all the time, sometime with the expectation of review or litigation going forward. But I always frame it as “I’m the consultant, this is ultimately your business decision, I can only tell you what you’re supposed to do.”
Posted on 3/3/25 at 1:23 pm to fareplay
quote:
Good point, is the CPA end goal to reduce chance of audit or to maximize savings? I’d like to assume latter controlling for former but never know
Little of both. If your tax situation is involved enough, the goal is to save as much money as legally possible. CPA’s are generally of the most benefit to business owners. That’s why I advise most individual only clients to stick with self prep - unless they are mostly 1099 income or have rentals.
quote:
They didn’t find them or they didn’t commit tax fraud on your behalf? Big difference
LOL this. Tax code is so convoluted, good chance the “loopholes” don’t apply.
Posted on 3/3/25 at 4:09 pm to fareplay
When this little old lady in a hole in the wall tax prep place found me $8k worth of refund, and charged me $125.
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