Accountant

[deleted126335]

no they aren't, but the IRS knows if the return is prepared by a CPA it's already met a minimum level of scrutiny which leads to less chance of an audit. I wish we had a flat tax and had no need for CPAs. But as it stands, if you are a high income individual with even a moderately complicated return they are dirt cheap. Don't tell my CPA, but I'd pay him 6x what he charges me if that's what he asked.

Except if you accountant has a reputation for being aggressive (shady). There is one guy in my town who has this reputation and has a higher than average audit rate. According to him anyway.


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[VA Hopeful Dr]

Just to continue to play devils advocate here:

The times I've used an accountant I had to make 2 trips to his office. I also had to make sure all of my documents where available and reasonably organized. This eliminates a lot of the theoretical time savings. Using TT I can easily bang out my taxes during the course of a slow OB shift. Again, I've invested and continue to invest the time to learn my relevant deductions and how to properly enter them. I enjoy reading about and understanding these things and I think it makes me a better financial steward for myself and my family. There are no super-secret loopholes that only the accountants know, it's all learnable with a bit of effort.

Completely agree that if you're willing to invest the time, you can probably do as good a job. For me, tax stuff is boring and I'd rather hand all my paperwork to someone else and go play with my kids.

 

[epidural man]

The OP says he doesn't have anything complicated - which means, TT should work just fine. In fact - I think you could use Turbo Tax as a start - but then just fill out the forms on your own for free. It's probably about the same amount of work.

He can learn about a back door Roth, or SEP, or whatever on his own. I don't think a CPA is needed.

But I am likely wrong ---

for example,

I paid a CPA - he totally screwed up and I ended up doing it myself. He had no idea that since I was in the military, it is federal law that I don't have to pay state income tax in the state I was stationed in. That is like 20K.

Then the next year, I did my own - and ended up having to pay the IRS a bunch more money because I entered something twice on the form ( I thought TT was screwing up - turns out I was wrong, they were right).

I hired a different CPA the next year.

A good CPA (300-500) is probably worth the time it would spend you to do it. If you get paid ~$150/hr, then it is a wash.

 

[doctalaughs]

The OP says he doesn't have anything complicated - which means, TT should work just fine. In fact - I think you could use Turbo Tax as a start - but then just fill out the forms on your own for free. It's probably about the same amount of work.

He can learn about a back door Roth, or SEP, or whatever on his own. I don't think a CPA is needed.

But I am likely wrong ---

for example,

I paid a CPA - he totally screwed up and I ended up doing it myself. He had no idea that since I was in the military, it is federal law that I don't have to pay state income tax in the state I was stationed in. That is like 20K.

Then the next year, I did my own - and ended up having to pay the IRS a bunch more money because I entered something twice on the form ( I thought TT was screwing up - turns out I was wrong, they were right).

I hired a different CPA the next year.

A good CPA (300-500) is probably worth the time it would spend you to do it. If you get paid ~$150/hr, then it is a wash.

So you are saying it should only take you about 2 hours to do your taxes, educate yourself on the tax code, maximize all the shelters you can take advantage of etc?

I'm thinking it would take far more time. If you enjoy that stuff go ahead. I'm sure its not rocket science- but its not exactly like mowing your lawn and to say a layperson can learn all the "tricks" in 1 or 2 hours per year along with some software seems arrogant. Theres a reason doctors have a reputation for being extremely bad with money and its mostly because they overestimate their skills. For me I'd rather work an hour and let someone who comes well recommended do it (of course you shouldn't hire any old cpa just like you wouldn't hire a random lawyer. Hire one that does lots of physician returns. Or of course if you are in the military your CPA should be doing tons of military returns for years)


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[BLADEMDA]

So you are saying it should only take you about 2 hours to do your taxes, educate yourself on the tax code, maximize all the shelters you can take advantage of etc?

I'm thinking it would take far more time. If you enjoy that stuff go ahead. I'm sure its not rocket science- but its not exactly like mowing your lawn and to say a layperson can learn all the "tricks" in 1 or 2 hours per year along with some software seems arrogant. Theres a reason doctors have a reputation for being extremely bad with money and its mostly because they overestimate their skills. For me I'd rather work an hour and let someone who comes well recommended do it (of course you shouldn't hire any old cpa just like you wouldn't hire a random lawyer. Hire one that does lots of physician returns. Or of course if you are in the military your CPA should be doing tons of military returns for years)


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Typically takes me 4 hours using the software but I take my time. I then bring everything to my CPA who usually saves me a $100-$200 off my computations making the cost of using the CPA negligible. Some years my CPA has saved me a lot of money while others just $100-$200.

I like knowing the tax code and seeing how the liberals are stealing my money (oops..)