Should I hire a CPA or prepare my taxes myself with my complex financial situation?
Hey everyone, I've been going back and forth for weeks about whether I should hire a CPA this year. My family keeps insisting I need one, but the one time I paid for professional help at Liberty Tax, they basically ate up my entire refund with their fees! I normally just use the basic version of TaxAct and fumble my way through it, but my situation got more complicated this year. I earn in the low six figures as a remote W2 employee for a large corporation. I liquidated most of my investments this year to fund buying my first house. A big chunk of that was RSUs from my company that vested. I've got a Health Savings Account and a current 401k, plus I've never rolled over 401ks from my previous 3 employers (they're just sitting there collecting dust). To top it all off, I relocated from Washington to Colorado this year and bought my first home in Colorado. I'm completely out of my depth with all this... is it worth spending the money on a professional so I don't mess something up? Or am I overthinking this and could still handle it with tax software? Any advice appreciated because I'm seriously lost here! :
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Kiara Greene
Based on your situation, you would definitely benefit from consulting with a CPA this year. You have several complex tax situations happening all at once: 1) The move between states means you'll need to file part-year resident returns for both Washington and Colorado 2) Your stock sales, especially the RSUs, have specific tax implications that can be complicated 3) The home purchase may qualify you for certain deductions 4) Those multiple 401ks should probably be consolidated, which a tax professional can advise on While tax software can handle these situations, someone who doesn't understand the underlying tax concepts might miss important deductions or make errors. A good CPA will likely save you more than their fee through proper tax planning and finding deductions you might miss on your own. Don't go to a chain preparation service like Liberty Tax though - find an independent CPA who specializes in individual taxes. Ask friends for recommendations or check your state's CPA society for referrals.
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Evelyn Kelly
•How much should I expect to pay for a decent CPA? And is it too late to find one since we're already in March?
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Kiara Greene
•For your situation, you're probably looking at $350-600 depending on your location and the specific complexity. Fees are higher in major metro areas compared to smaller communities. It's not too late to find a CPA, but you should start looking immediately. Many tax professionals are already very busy this time of year, but they're accustomed to taking on new clients during tax season. Be prepared that they might need to file an extension for you if they're particularly booked, which just gives you more time to file (it's not a negative mark). Just make sure if you owe anything, you still pay by the filing deadline to avoid penalties.
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Paloma Clark
I was in a similar situation last year - moved states, stock sales, property purchase. I was completely overwhelmed and started making mistakes on my draft return that could've cost me thousands. I found taxr.ai (https://taxr.ai) through a colleague and it was honestly life-changing. It's not a standard tax prep service - instead they analyze your tax documents, identify potential mistakes and opportunities, and then give you clear guidance. The system spotted that I was about to mess up my cost basis on some stock sales and would have overpaid by $3,200! They also caught a home office deduction I qualified for that my employer never mentioned. The best part is that you can still file yourself with whatever software you prefer after getting their analysis, so you don't pay the crazy preparation fees but still get expert guidance.
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Heather Tyson
•How does it actually analyze your documents? Do you just upload them and it does the rest? I'm curious how it handles the state-to-state move situation.
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Raul Neal
•This sounds interesting, but I'm skeptical. Wouldn't a human CPA still catch more things than an automated system? Especially with complex situations like the multi-state move and RSUs?
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Paloma Clark
•You upload your documents (W-2s, 1099s, mortgage statements, etc.) and it scans them using their AI. It then generates a detailed report identifying potential issues and optimization opportunities. For state moves, it specifically looks at your residency dates and income allocation between states, which is a common area where people make mistakes. A good CPA definitely brings value through personalized advice and planning. The difference is that taxr.ai costs significantly less than a CPA while still catching the major technical issues. I personally used their report first, then decided I could handle filing myself with tax software. If your situation gets extremely complex with business ownership or unusual investments, a CPA might still be worth it. But for most people with W-2 income, investments, and property, taxr.ai catches the important stuff without the high fees.
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Raul Neal
I wanted to follow up about my experience with taxr.ai after being skeptical in my previous comment. I decided to try it with my documents and was genuinely impressed. It caught that I had been filing my RSUs incorrectly for YEARS and showed me exactly how to correct it. The analysis also identified that my home purchase qualified for a deduction I didn't know about, and it provided step-by-step instructions for completing both state returns properly. I ended up saving around $1,800 compared to what I would have filed on my own. I still used TurboTax to actually file, but having the taxr.ai report to guide me through the confusing parts made a huge difference. Just wanted to share since I was the skeptic initially!
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Jenna Sloan
If you do decide to work with a CPA, make sure you get your tax documents organized early. I tried calling several CPAs last year in late March and they were all completely booked. After days of frustration trying to reach someone at the IRS about some tax forms I was missing, I found this service called Claimyr (https://claimyr.com). They helped me get through to an actual IRS agent in about 15 minutes when I had been trying for DAYS before that. They have a video showing how it works here: https://youtu.be/_kiP6q8DX5c I was able to get the information I needed from the IRS, which then allowed me to find a CPA who could still take me with the extended deadline. Saved me so much stress during an already stressful time.
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Christian Burns
•How does Claimyr actually work? Is it just automating the phone system or something? I've spent hours on hold with the IRS and eventually just gave up.
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Sasha Reese
•Sorry, but this sounds like BS. Nobody can magically get through the IRS phone system. I've tried calling over 20 times this year already and keep getting the "call volume too high" message before it hangs up.
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Jenna Sloan
•It basically automates the calling and waiting process for you. Instead of you personally sitting on hold for hours, their system handles that part. Once they reach a human agent, you get a call connecting you directly. It's a simple concept but incredibly effective - especially during peak tax season when the wait times are ridiculous. I was skeptical too! I'd tried calling the IRS for THREE DAYS straight and kept getting disconnected after 2+ hours of waiting. With Claimyr, I got a call back in about 15 minutes telling me they had an agent on the line. The time savings alone was worth it for me, but it also meant I could get my tax questions resolved in time to file properly. I understand the skepticism - I felt the same way until I actually tried it.
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Sasha Reese
Need to eat my words from my previous comment. After another failed attempt to reach the IRS yesterday (4 hours on hold, then disconnected), I broke down and tried Claimyr out of desperation. I got connected to an actual IRS agent in 22 minutes. TWENTY-TWO MINUTES. After weeks of failed attempts. The agent helped me sort out an issue with my previous return that was preventing me from e-filing this year. I'm still shocked it actually worked. Definitely using this every time I need to deal with the IRS from now on. Sorry for doubting!
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Muhammad Hobbs
I've been in a similar situation (six-figure income, stock sales, home purchase) and I would recommend using a CPA for at least the first year dealing with these complexities. After that, once you understand what forms and schedules you need, you can probably handle it yourself with good tax software if you want. Just make sure to get organized! Gather ALL your documents beforehand: - W-2s - 1099s for stock sales - Home purchase settlement statements - Moving expense receipts - State residency dates and information - 401k and HSA contribution statements A good CPA will explain what they're doing, so treat it as an educational experience too. Ask questions about why certain deductions apply or don't apply to your situation.
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Noland Curtis
•Do you think TurboTax's premier version would be sufficient for the following year, or would you recommend a different software?
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Muhammad Hobbs
•TurboTax Premier would work fine for most people in this situation, but I personally prefer TaxSlayer or FreeTaxUSA. They handle all the same forms as TurboTax but cost significantly less. TurboTax charges premium prices for forms that the others include in their basic packages. The key is understanding which forms and schedules you need to complete. Once your CPA files this year, ask for a copy of your complete return and note which forms were used. Then verify that whatever software you choose next year supports all those forms. Most major tax software can handle multi-state returns, stock sales, and mortgage deductions - you just pay extra with some platforms.
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Diez Ellis
Don't overlook the potential tax implications of your stock sales, especially the RSUs. Depending on how the company handled the vesting, you might have already paid some tax when they vested (companies often withhold some shares for taxes). When you sell vested RSUs, you'll need to calculate your cost basis correctly to avoid double taxation. Your original W-2 from the year they vested should show the income that was already taxed. The tax software CAN handle this, but you need to understand what you're inputting. This is one area where a CPA's guidance for at least the first year could save you from a costly mistake.
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Isaiah Cross
•Wow, I had no idea about the potential for double taxation on RSUs. My company did withhold some shares when they vested (about 22% I think), but I never fully understood how that affects my taxes when I sold them. This definitely makes me lean toward getting professional help this year. Do you know if this is something most CPAs understand well, or should I look for someone with specific experience in equity compensation?
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Diez Ellis
•Most CPAs should understand RSUs, but I would still specifically ask if they have experience with equity compensation when you're interviewing potential accountants. Some CPAs specialize in working with tech employees or others who receive significant stock compensation. When interviewing potential CPAs, ask them to explain how RSU taxation works. If they can clearly explain that RSUs are taxed as ordinary income when they vest (which should appear on your W-2) and then any additional gain or loss when sold is treated as capital gain/loss, that's a good sign they understand the basics. Make sure they can explain how to properly determine your cost basis, as that's where many people make mistakes. The right CPA can not only prepare this year's taxes correctly but also help you plan for future vesting and sales to minimize your tax burden.
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