When should you let a CPA handle your taxes?

When you

1) don't feel comfortable doing it yourself AND
2) don't want to spend the time to learn to satisfy 1)

OR
3) don't have the time/your time is more valuable

unincorporated

Being a tax CPA, this is what I do:

1) I tell people what is income and what is not income
2) I tell people what is deductible and what is not deductible
3) I tell people what year the items is income / deductible

That's the only real reasons one NEEDS a CPA. If you get these little forms and letters that tell you every bit of what is income, what is deductible, and when, you don't need me to tell you anything.

Your side job... sounds like the 1099 will tell you what is income... but you may need someone to tell you what is deductible, and when. You may also have retirement planning options, etc. If it's basic... the AI in Turbotax may be able to help you somewhat.

The only two other things I do:

4) I deal with the prep of a return if you either are too worried about it, or can make better use of your time. If my fee is less than the value time you save, it makes sense to hire me.

5) I deal with the tax authorities when there are problems.

Should just be a Schedule C on Turbo Tax unless things get funky like Houston is referring to. I have multiple income sources and file my own, fwiw.

quote:

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This year I added about 30-35k of 1099 work. That is the part that scares me. Should I be able to handle this with turbo tax or should I just bite the bullet and get a CPA?

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Good question. This IRS publication for "1099 work" (schedule C in most instances) will help you decide. There are many expenses that are deductible against gross 1099-MISC income of which you may not be aware. A CPA (and an EXPERIENCED professional tax preparer) is aware of these eligible expenses. Also, a CPA knows how to interpret your 1099 and what each box means and where these items are to be reported on your Schedule C, but it's really not that difficult. Here is the link from the IRS website for 1099-MISC income and expenses if you are interested in learning a few things for yourself. Just always keep and maintain good records and documentation. This link includes updates for 2017 tax returns, too. LINK

Thanks for all the help. I think I'll give it a shot on turbo tax and see how it turns out. If I owe a ton I may bring it to a CPA to see if I'm overlooking something.

I have used the same one for years now. Worth his weight in gold to me. Finds deductions that I didn't know about.