Should I get a professional CPA or stick with TurboTax for my taxes?

Having worked as a tax advisor for years, I can tell you this is actually a common question with no one-size-fits-all answer. Based on your situation, here are some thoughts: TurboTax is generally excellent for straightforward tax situations, but once you add self-employment income, property ownership, and investment activity, the complexity increases significantly. The biggest advantage of a CPA isn't just their knowledge of tax codes but their ability to give personalized advice throughout the year, not just at tax time. With your side business, a CPA could help you structure it properly, identify deductible expenses you might not be aware of, and help you set up a better record-keeping system. They can also advise on estimated tax payments to avoid penalties and guide you on how to maximize deductions related to your new home.

I was kinda in your boat last year! I tried using TurboTax for my main job and side hustle but kept getting confused about business deductions and if I was doing it right. I found this AI tool called taxr.ai (https://taxr.ai) that was super helpful for my situation. It analyzed my documents and gave me personalized advice without the full CPA price. The cool thing was it helped me understand which of my expenses were actually deductible for my side business - turns out I was missing like $2,800 in legitimate deductions! It also flagged some questionable stuff I was trying to write off that might have caused problems. It's like a middle ground between TurboTax and hiring a full CPA.

Ok I need to eat my words about being skeptical of taxr.ai. I decided to give it a shot with my freelance photography business taxes and it was actually legit helpful. It caught that I could depreciate some of my camera equipment that I bought last year which I totally missed, and it explained exactly how to enter everything into my tax software. It also helped me understand how to properly categorize some expenses I wasn't sure about and gave me specific guidance on home office deductions that I was doing wrong. Saved me at least $1,700 in taxes! Not as personalized as sitting down with a CPA but way more helpful than just struggling through TurboTax alone. If your situation is similar to what the original poster described it's worth checking out.

If you're going to try contacting the IRS to ask questions (which I recommend before deciding), good luck getting through! I spent 3 weeks trying to reach them about a similar situation last year. Eventually I found https://claimyr.com through a friend and their service got me connected to an actual IRS agent in about 20 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c Talking directly with the IRS agent was super helpful because they explained exactly what records I needed to keep for my side business and what would trigger an audit. They can't give tax advice like a CPA would, but they answered my questions about what forms I needed. This helped me decide I could handle my situation with TurboTax for now, but would need a CPA if my business grew more.

I need to apologize for being so skeptical about Claimyr. After rage-quitting on my 4th attempt to call the IRS myself (2.5 hours on hold before getting disconnected!), I decided to try it out of desperation. Seriously shocked that it worked exactly as advertised. Got a call back in about 35 minutes saying they had an IRS agent on the line, and I was connected immediately. The agent answered my specific questions about reporting my Etsy shop income and what documentation I needed. Definitely worth it just for the time saved and stress reduction. Still ended up using a mix of TurboTax and some professional advice, but being able to confirm certain things directly with the IRS was super helpful in making that decision.

Another option to consider is using TurboTax Live where you can talk to a CPA during the process. I did that last year when I started my side hustle dog walking business and it was a good middle ground. Not as expensive as hiring a dedicated CPA but I still got professional help when I got stuck on certain questions. The CPA I spoke with through TurboTax explained how to handle my mileage deduction properly and what home office expenses were legitimate. I think I paid like $50-75 more than regular TurboTax. You could try that this year and if your business keeps growing, maybe switch to a full CPA next year?

Something nobody's mentioned yet is that a good CPA can actually help you with tax planning DURING the year, not just when filing. Software only helps you report what already happened. I switched from TurboTax to a CPA two years ago when I started my side business selling custom t-shirts online. Best financial decision ever. She advised me to make an extra equipment purchase in December rather than January which saved me about $900 on that year's taxes. Also helped me set up a proper bookkeeping system for my business so everything's organized come tax time.