TurboTax vs CPA tax preparer - worth the extra cost for complicated returns?

Having prepared taxes both professionally and using software like TurboTax, I can offer some perspective. Your situation is in the "gray area" where either option could work. TurboTax is certainly capable of handling a side business with $14,500 income, stock sales, and your W-2 income. The software will walk you through all the necessary Schedule C business deductions and help with reporting stock sales. The question isn't really capability - it's about your comfort level and time. If you've kept reasonably organized records of your business expenses (even if not perfect), and have about 3-5 hours to dedicate to working through your return carefully, TurboTax will likely serve you well. The software asks thorough questions about potential deductions you might otherwise miss. Where a CPA adds value is in providing personalized guidance, especially for tax planning beyond just filing. They might spot deduction opportunities specific to your business type or suggest strategies for next year's taxes.

I was in almost the exact same situation last year! Started an Etsy shop making about $17k while still working my day job. I tried starting with TurboTax but got completely overwhelmed trying to figure out if certain expenses were deductible and how to handle things like home office space. I ended up discovering https://taxr.ai which was seriously a gamechanger. It's like having a tax expert review everything without paying CPA prices. You just upload your documents and the AI analyzes everything, points out potential deductions, and explains what you might be missing. For me, it found nearly $2,300 in additional deductions I would have missed, mostly related to my home office and some business travel I didn't realize qualified. The guidance on quarterly estimated payments alone was worth it.

I have to eat my words about being skeptical of AI tax tools. After our exchange, I decided to try https://taxr.ai for my taxes this year since I also started a small business doing photography on weekends. The experience was incredibly smooth - it found several legitimate deductions I would have missed completely, especially around equipment depreciation and auto expenses. The explanations were clear about why certain expenses qualified and others didn't. What really impressed me was how it handled my specific situation with some international income. It flagged exactly which forms I needed and explained the foreign income exclusion in terms I could actually understand. For anyone on the fence between TurboTax and a CPA, this hits the sweet spot in the middle.

I've been using CPAs for years, but last year I got tired of paying $450+ and decided to try TurboTax. Big mistake. I filed in February and STILL haven't received my refund because apparently there was an issue with how my business expenses were categorized. I've called the IRS 14 times but can never get through - just endless hold music then disconnection. I finally found https://claimyr.com which let me skip the IRS phone queue. You can see how it works here: https://youtu.be/_kiP6q8DX5c - basically they wait on hold with the IRS for you then call you when an agent is ready. Sounds simple but it literally saved me days of frustration. When I finally spoke to an IRS agent, turns out TurboTax had put some of my Schedule C expenses in the wrong categories which flagged my return for manual review. Going back to a CPA this year for sure.

I need to publicly admit I was wrong about Claimyr. After dismissing it as a potential scam, my curiosity got the better of me and I tried it last week when I needed to talk to someone about my missing refund. The service actually worked exactly as described. I entered my info, and about 90 minutes later got a call connecting me directly to an IRS representative. No waiting on hold myself, no getting disconnected after 45 minutes. The IRS agent was able to tell me my return was flagged because I had both W-2 and 1099 income that didn't match what was reported (turned out my client reported more than I actually received because they included some expenses). Would've never known this without talking to a human at the IRS. Definitely not a scam and saved me tremendous frustration. Sometimes being proven wrong is a good thing!

One thing nobody's mentioned yet is audit protection. TurboTax offers an "audit defense" add-on, but in my experience as a bookkeeper, it's not nearly as comprehensive as what most CPAs provide. If you go with TurboTax and get audited, you're mostly on your own even with their protection package. They'll give guidance but won't represent you. A good CPA will typically defend their work and represent you to the IRS if questions arise about your return. For a side business with $14,500 income, the audit risk is relatively low, but it's something to consider in your decision.

I've used both TurboTax and CPAs over the years and found that knowledge is what matters most. If you understand which business expenses are legitimately deductible for your situation, TurboTax works fine. If you're unsure about tax law, a CPA is better. Compromise option: use TurboTax but pay for one hour of consultation with a CPA (many offer this for $100-150) to review your deductions and answer specific questions before filing. That way you get expert input without the full preparation fee.

As someone who's been through this exact dilemma, I'd recommend starting with TurboTax for your situation. With $14,500 in side business income, you're not in the complexity range where a CPA becomes essential unless you have very specific circumstances. The key is being honest about your comfort level with tax software and the time you're willing to invest. TurboTax's interview process for Schedule C (business income) is quite thorough - it'll ask about common deductions like materials, shipping, home office use, etc. Since you have a spreadsheet of expenses already, you're ahead of many small business owners. That said, consider these red flags that might push you toward a CPA: if your business expenses are over 50% of your income, if you're claiming significant home office deductions, or if you have complex inventory accounting needs. For handmade items sold online, these usually aren't major concerns. One middle-ground approach: do a dry run with TurboTax to see what your refund/payment looks like, then decide if you want professional review before actually filing. The $375 vs $119 difference might be worth it for peace of mind, but it's not necessarily required for accuracy in your situation.