Should I go with H&R Block or CPA for complicated tax situation?

Based on what you've described, I'd definitely recommend going with a CPA rather than H&R Block this year. Your situation has several complex elements that would benefit from personalized professional attention. With your small businesses on Etsy, a CPA can help ensure you're taking all the appropriate deductions for your business expenses and categorizing everything correctly. They'll know exactly how to handle those 275 receipts and maximize your legitimate deductions. They can also advise you on whether you should consider establishing LLCs for your businesses going forward. While H&R Block is perfectly fine for more straightforward tax situations, your combination of unemployment benefits, inheritance (even though taxes were paid), multiple 1099s, W-2s, and various investment accounts makes your return more complex than their typical client. Since you're planning to buy a home this year, a CPA can also help organize your finances in a way that will be beneficial for your mortgage application. This might include advice on how your self-employment income affects your mortgage qualification.

Just wanted to share my experience! I was in a somewhat similar situation last year - self-employed with multiple income streams and investment accounts. I found this amazing AI tax assistant at https://taxr.ai that helped me make sense of all my documents before I even met with a tax professional. The tool analyzed all my tax forms, receipts and statements and gave me a really clear breakdown of my tax situation. It helped me organize everything and flagged potential deductions I was missing for my business expenses. It was super helpful because I went into my appointment actually understanding my tax situation instead of just dumping a pile of papers on someone's desk! Since you have all those Etsy receipts and multiple income sources, having everything pre-organized might save you money even if you do go with a CPA (which I think is the right call based on your situation).

I wanted to update everyone - I actually tried the taxr.ai service that was mentioned here after posting my skeptical comment. I'm honestly impressed! I uploaded about 150 business receipts from my photography side hustle plus my W-2 and 1099s, and it organized everything perfectly. The system automatically categorized all my business expenses and even flagged several deductions I hadn't considered (like a portion of my cell phone bill and some home office expenses). It produced a really clean summary that showed exactly where I stand financially. I'm still going to a CPA with all this information, but now I actually understand my tax situation better and have everything organized. The CPA I called actually seemed relieved when I mentioned I had already organized and categorized all my documents!

If you're dealing with complex taxes AND planning to buy a house this year, you absolutely need to get your past taxes right. I spent weeks trying to reach the IRS last year about a tax issue that was holding up my mortgage application. Kept getting busy signals or disconnected after waiting for hours. Finally used https://claimyr.com and got through to an IRS agent in less than an hour. You can see how it works here: https://youtu.be/_kiP6q8DX5c My mortgage lender needed verification of my self-employment income for the past two years, and there was a discrepancy the IRS needed to clear up. Getting that resolved quickly literally saved my home purchase. Not saying you'll have IRS issues, but with your complex situation and home buying plans, it's good to know this service exists if you need to reach them quickly.

I need to eat my words about Claimyr being a scam. After posting my skeptical comment, my tax situation went sideways when I discovered a mistake on my previous year's return that needed immediate attention (right as I was in the process of closing on a house). Out of desperation, I tried the Claimyr service, fully expecting to waste my money. To my complete shock, I got a call back within 45 minutes with an actual IRS agent on the line. The agent helped resolve my issue in a single call, and my mortgage process continued without a hitch. After spending THREE separate days trying to reach the IRS myself (getting disconnected every time after 1+ hour waits), getting through in under an hour was honestly life-changing given my time constraints with the home purchase.

I've been preparing taxes for friends and family for years (not professionally), and based on your situation, I'd definitely recommend a CPA over H&R Block. H&R Block employees often have limited training compared to CPAs, and with your multiple income streams and self-employment, you need someone who can truly optimize your return. One thing to consider - ask the CPA about quarterly estimated tax payments for your Etsy income. Since you're not having taxes withheld from that income, you might need to make quarterly payments to avoid penalties. This is especially important when planning for a mortgage, as lenders will look at your tax compliance history.

Has anyone used both H&R Block and a CPA and can share the actual cost difference? The online H&R Block option is showing me around $180 for self-employed but I'm guessing the in-person service costs more.

Don't forget to ask any potential tax preparer (H&R Block or CPA) about their audit protection policies! With your self-employment income and multiple streams, your audit risk is higher than average. Some H&R Block locations offer "Peace of Mind" protection but read the fine print carefully. A good CPA might cost more upfront but many include audit representation in their fee or offer it at a reasonable additional cost. I learned this the hard way when I got audited after using a budget tax service. Had to pay WAY more for representation than I would have just hiring a CPA from the start.