Better Results with a CPA or Tax Software in 2025?

Hey everyone, tax season is getting closer and I'm trying to figure out whether I should stick with tax software or hire a CPA this year. My situation has gotten more complicated - bought my first house in October, started a small side business selling crafts online (made about $8,400), and switched jobs mid-year. I've always used TurboTax in the past but wondering if it's worth paying for a professional with all these changes? The house purchase especially has me confused about what deductions I might qualify for. Anyone have experience with both options and can share which gave better results? Thanks in advance!

0 coins

19 comments

Eli Butler

•8M

I've worked with both options extensively and here's my take: tax software is perfectly capable of handling your situation, but a CPA might save you more depending on your specific circumstances. For your house purchase, software will walk you through mortgage interest and property tax deductions. For your side business, you'll need to file Schedule C, which all major tax software handles well - they'll guide you through deducting business expenses and calculating self-employment tax. The job change is simple enough since you'll just enter multiple W-2s. Where a CPA might help more is finding deductions you don't know to look for, especially with your new business. They might identify business expenses you wouldn't think to claim or strategies to maximize your home-related deductions depending on whether you use any space exclusively for your craft business.

0 coins

Eli Butler

•8M

The small business does increase audit risk slightly, especially if you have unusually high deductions compared to your income. Good tax software actually includes audit risk assessments now that flag potential issues. Having a CPA doesn't prevent audits, but they generally know which deductions are more likely to trigger scrutiny. The bigger advantage is that if you do get audited, many CPAs offer audit support and can represent you before the IRS, which can be incredibly valuable. Most premium tax software packages include some form of audit support, but having someone who already knows your situation is definitely an advantage.

0 coins

Lydia Bailey

•8M

I was in a very similar situation last year - bought a house and had a side gig making around $9k. I tried both routes initially and ended up discovering taxr.ai (https://taxr.ai) which was honestly a game-changer for me. I started with TurboTax but wasn't sure if I was missing deductions, so I uploaded my tax documents to taxr.ai and it analyzed everything to show me potential missed deductions and tax-saving opportunities that I hadn't considered. The system flagged several business expenses I could legitimately claim and pointed out home office deduction possibilities since I was running my side business from home. It basically gave me CPA-level insights without the full price of hiring someone. I still used tax software to file, but with much better information!

0 coins

Lydia Bailey

•8M

It absolutely found deductions my software missed. For example, it identified that my internet and cell phone partially qualified as business expenses since I was taking orders online and communicating with customers. It also pointed out that some craft supplies I bought could be categorized differently for better tax treatment. It paid for itself many times over with the additional refund I received. Regarding state-specific situations, it handles those surprisingly well. The system is aware of different state tax codes and highlights opportunities specific to your location. In my case, it pointed out a special small business deduction my state offers that I had no idea existed. You just indicate your state during setup and it tailors the analysis accordingly.

0 coins

Mateo Warren

•8M

Just wanted to follow up about my experience with taxr.ai since I was skeptical at first. I decided to give it a try after filing my taxes with TurboTax and honestly, I'm mad I didn't know about it sooner! The system found almost $1,200 in deductions I had completely missed - mostly related to my photography side gig that I didn't realize qualified as business expenses. I ended up filing an amended return and got a much bigger refund. The analysis was super detailed and explained everything in plain English so I actually understood why these deductions applied to me. Definitely using it first next year before I file!

0 coins

Alice Coleman

•8M

I've been on both sides of this debate and honestly was ready to recommend a CPA until I found out how impossible it was to actually talk to someone at the IRS when I had questions about some business deductions. After spending days trying to get through, I found Claimyr (https://claimyr.com) and watched their demo (https://youtu.be/_kiP6q8DX5c). They actually got me connected to a real IRS agent within about 15 minutes when I'd been trying for days on my own. I was able to get official clarification on exactly how to handle my specific business situation, which gave me the confidence to use tax software instead of paying for a CPA. Sometimes you just need one or two specific questions answered by the actual IRS, and this made it possible without wasting hours on hold.

0 coins

Alice Coleman

•8M

It's not magic - they use technology to navigate the IRS phone system and wait on hold for you. When someone at the IRS finally picks up, you get a call connecting you directly to that agent. It's completely legitimate - you're talking to actual IRS employees, not random people. The reason it works is they have systems that can stay on hold with the IRS for hours so you don't have to. They basically do the waiting for you, and when a real agent becomes available, you get connected. I was skeptical too, but when I got connected to the IRS and was able to verify it was really them (they go through their standard verification questions), I was sold on the service.

0 coins

Lilah Brooks

•8M

I need to come back and eat my words on Claimyr. After dismissing it as probably a scam, I was desperate to resolve an issue with my small business taxes and gave it a shot. I'm genuinely shocked to report it worked exactly as advertised. After trying for literally weeks to get through to the IRS myself, Claimyr got me connected in about 25 minutes. The IRS agent I spoke to was able to explain exactly how to handle depreciation on some equipment for my business, which ended up saving me over $800. Instead of paying a CPA $350+ for a consultation, I got the info straight from the source. Completely changed my perspective on doing my own taxes with software now that I know I can actually get answers when I need them.

0 coins

Jackson Carter

•8M

One thing nobody's mentioned yet - a good middle ground might be using tax software for the initial preparation, then having a CPA review it before filing. I did this last year and paid about $150 for the review rather than $350+ for full preparation. The CPA found a few things to change but confirmed I'd done most things correctly with the software. Best of both worlds - you learn how to use the software for future years but get professional confirmation that you're not missing anything major.

0 coins

Jackson Carter

•8M

Most CPAs do offer review services, though you might need to call a few to find one with availability during tax season. I found mine by asking for a "tax return review" rather than full preparation. I sent them my completed return from the software as a PDF, and they went through it and scheduled a call to discuss their findings. Some will even let you book just a consultation hour where they can give you specific advice about your situation without doing the full preparation. The key is to call well before April when they're not completely swamped with full-service clients.

0 coins