TurboTax vs Hiring a CPA: When to Switch

There's no single right answer here. Tax software like TurboTax works well for a big share of returns and costs far less than a professional. A CPA or other tax pro brings judgment and personalized advice that software just can't. The best choice comes down to your situation, not to which one is generally better.

This is an independent guide and not affiliated with Intuit.

For a lot of people, software handles everything they need. It tends to be a great fit when:

• Your income is mostly from a W-2.
• Your deductions are straightforward.
• You're comfortable answering guided questions.
• You want to keep costs down and file on your own schedule.

A professional gets more valuable as complexity rises. Consider one if:

• You own a business or have significant self-employment income.
• You had a major life change, like selling a property or receiving an inheritance.
• You have complex investments, rental properties, or multi-state issues.
• You're facing an audit or a tricky notice and want expert representation.

Software has the cheaper sticker price, but cost isn't the only measure. A CPA may uncover planning opportunities or deductions that more than offset their fee, and they save you time and stress on a complicated return. Weigh the fee against the value of accuracy, advice, and your own hours.

Your needs change. Many people use software for simple years and switch to a pro when life gets complicated, then maybe go back to software later. It's also reasonable to have a CPA handle a complex year once, learn from how they structured things, and use software in the steadier years.

To decide this year, ask yourself:

• How confident do I feel about my return's accuracy?
• Did anything unusual or large happen financially this year?
• Is my time better spent doing this myself or handing it off?
• Would professional advice likely save more than it costs?

Your honest answers usually point pretty clearly to one path.