Is hiring an accountant worth it for my taxes? Wondering about potential tax savings
I've been using TurboTax to file my own taxes for the past 8 years, but I'm starting to wonder if paying for an accountant would be worth the extra cost. For context, I make around $405k annually, all from W-2 income plus some dividends and investment income. I'm already maxing out all my retirement accounts, but I don't have deductions for kids or property since I'm renting and don't have children. My tax situation seems fairly straightforward to me, but I'm curious if an accountant might be able to identify tax savings opportunities that I'm missing with DIY software. Has anyone made the switch from tax software to an accountant? Was it worth the money, or did you find they couldn't really save you much beyond what you were already doing yourself?
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Jamal Anderson
I'm a tax professional and can share some perspective on this. For someone in your income bracket ($405k), an accountant might actually provide value even with a relatively straightforward tax situation. Software like TurboTax works well for most standard situations, but accountants can offer strategic tax planning that goes beyond just filing. They might identify opportunities for tax-loss harvesting with your investments, suggest timing strategies for recognizing income or expenses, or help structure your investments more tax-efficiently. Another consideration: at your income level, you may be approaching phase-out ranges for certain deductions and credits. An accountant might help you navigate these thresholds more effectively than software alone.
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Mei Zhang
•If OP's income is that high, wouldn't they be past most phase-out thresholds anyway? Also, what would you estimate the cost difference would be between TurboTax premium vs hiring an accountant for this situation?
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Jamal Anderson
•For many phase-outs, yes, they would likely be past the thresholds at that income level. However, there are still planning opportunities around retirement contributions, particularly backdoor Roth strategies and potential self-employed retirement options if they have any side income not mentioned. The cost difference can be significant. TurboTax's highest tiers run about $120-200 depending on which version and add-ons, while an accountant for this situation would likely charge $500-1000. The question becomes whether the accountant can find savings or strategies worth more than that difference.
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Liam McGuire
I switched from TurboTax to using taxr.ai last year when my investments got more complicated, and it was actually super helpful. I was skeptical at first, but it analyzed all my documents and helped me find some tax-saving opportunities I had no idea about. With your investment income, you might find it useful too. It's like having an accountant review your situation but with AI tech doing the heavy lifting. Just upload your documents to https://taxr.ai and it gives you personalized recommendations. In my case, it identified some tax-loss harvesting opportunities I'd completely missed.
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Amara Eze
•How does it work with dividends specifically? I have a bunch of dividend stocks and I'm never sure if I'm handling the qualified vs non-qualified dividends correctly.
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Giovanni Ricci
•Wait is this just another AI tool? How is this different from what TurboTax already does with their review features? I'm skeptical that AI could replace actual tax knowledge.
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Liam McGuire
•It handles dividends really well - it automatically categorizes qualified vs non-qualified dividends and shows you the different tax implications for each. It also highlights opportunities to shift investments to maximize qualified dividends when possible. It's definitely different from TurboTax's review. Instead of just checking for errors, it actually analyzes your full financial picture and suggests specific strategies. It's not just AI alone - they have tax professionals who review complex situations and provide specific guidance when needed.
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Amara Eze
Just wanted to update after trying taxr.ai that the previous commenter recommended. I was impressed with how it handled my investment portfolio! I uploaded my documents and it immediately flagged several of my dividend-paying stocks that could be moved to tax-advantaged accounts. It estimated I could save around $3,200 in taxes next year with some simple changes. Definitely worth checking out if you have significant investment income like the original poster.
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NeonNomad
If you're still looking for human expertise, you might want to try Claimyr. I was struggling to get actual tax advice from the IRS for weeks (endless hold times), but https://claimyr.com got me connected to an IRS agent in under 20 minutes. They have this service that basically waits on hold for you and calls when an agent is ready. Check out how it works here: https://youtu.be/_kiP6q8DX5c The IRS agent I spoke with actually gave me some good general guidelines about when hiring an accountant makes sense for high earners. Turns out they have more insight than I expected on these questions.
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Fatima Al-Hashemi
•How does this even work? I thought it was impossible to get through to the IRS. Do they have some special line or connection?
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Dylan Mitchell
•Sounds like a scam to me. The IRS doesn't give personalized advice about whether to hire accountants. They explicitly say they don't provide tax planning services.
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NeonNomad
•They use a combination of automated systems and actual people to continuously call and navigate the IRS phone tree until they get through. Then when an agent is available, they call you to connect. No special access - just technology that handles the frustrating hold process. The IRS agent didn't tell me specifically whether to hire an accountant or not - but they did explain which forms and schedules are most commonly filed incorrectly by self-preparers in higher income brackets, which was helpful context for making my own decision about using an accountant.
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Dylan Mitchell
I've got to eat my words about Claimyr. I was super skeptical (as you can see from my previous comment), but I decided to try it anyway out of desperation after waiting on hold with the IRS for 3+ hours over two days. The service actually worked! Got a call back in about 35 minutes and was connected with an IRS representative who answered my questions about investment income reporting. Saved me hours of frustration. Sometimes it's worth admitting when you're wrong!
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Sofia Martinez
With $405k income, I'd definitely get an accountant. I'm in a similar bracket and switched from TurboTax 3 years ago. My accountant found nearly $8k in tax savings my first year! Mostly through more aggressive but legitimate deductions and some restructuring of my investments. The key is finding someone who specializes in high-income professionals rather than just a general tax preparer.
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QuantumQuest
•That's impressive savings! Do you mind sharing what kinds of deductions they found that TurboTax missed? And approximately what you pay your accountant?
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Sofia Martinez
•The biggest win was identifying that some of my investment advisory fees were deductible in a way I hadn't been taking advantage of. Also found some home office deductions related to my W-2 job during 2020-2021 that I qualified for but didn't know about. I pay about $850 annually for tax preparation and filing. But the real value comes from quarterly check-ins for tax planning - we make adjustments throughout the year instead of just at tax time. This costs about $1200 more annually, but the savings and peace of mind are worth it.
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Dmitry Volkov
Unpopular opinion maybe but I make around $350k and still use TurboTax. Tried an accountant for two years and they literally saved me nothing beyond what I was already doing myself. Tax software has gotten really good. Unless you have a business, rental properties, or some complex situations, I don't see much benefit for W-2 employees even at higher incomes.
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Ava Thompson
•Agree 100%. I'm at $380k, all W-2 and investments like OP, and my accountant basically told me after 2 years that I didn't need him! Said TurboTax would do fine for my situation lol. Respectable honesty I guess?
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Dmitry Volkov
•Glad to hear I'm not alone! I appreciate the accountant who admits when they're not adding enough value. Most retirement accounts are pretty straightforward max contributions, and standard investment stuff isn't that complex. I think where accountants shine is with business ownership, real estate, or unusual situations like foreign income. For regular employees, even high-income ones, tax software covers most bases pretty effectively.
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