Spinoff: Do you have an accountant?

[Shimmy8]

Reading the property tax prepayment thread...how many of you have an accountant? Do your own taxes?

If so, when did you decide the complexity of your finances required a CPA?

Also related, if you do your own taxes, do you buy audit insurance via TurboTax or whatever software you use?

First year out, and I’ve always done my own taxes, but the thought of an audit is simply horrifying, even for my simple taxes.

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[rakotomazoto]

I'm finishing this year and I am also wondering if an accountant makes sense next year. I have always done my own taxes since I was a teenager, started out on paper forms, have used various tax software products (Turbo Tax, TaxACT, etc). It has been relatively easy so far, but I have heard that once you finish training, physicians have a big IRS bull's eye painted on their backs.

 

[Mman]

I did my own taxes from age 18 until 32. When I started getting more than a W2 (K1, 1099, etc), then I paid an accountant. Money well spent. Costs me about $500 a year for piece of mind and protection in case I get audited and that doesn't even count the 2-5 hours of time it would take me to fill it all out.

 

[facted]

Usually do my own taxes as wife and I are both W2 employees. Have tried an accountant before in the year I bought a house and the result was no different than what turbo tax got (I did them myself as well just to see what would happen). This year I got an accountant again as I'm living in one state and working in another and state to state taxes looked a little challenging at the onset. In all, though, if you're a W2 employee there really isn't that much complexity to takes that Turbo Tax can't take care of. If you are not financially savvy or have more complicated financial situations, then perhaps an accountant may be beneficial for you.

 

[GA8314]

I use our company CPA for personal filing. He knows our business and the ins and outs of our situation. I've used plenty of TurboTax in the past. For what we make, I personally feel that it's money well spent and it gives me peace of mind.

 

[caligas]

I believe the value of the knowledge you gain by understanding and doing your own taxes for outweighs the actual money you save. Yes you do have to do some research to understand things like navigating the back door Roth. But it is totally doable for any physician. My suggestion would be to try doing yourself AND have an account look at things for a year or two to make sure you’re doing things right. Then you’ll be off and running.

The one caveat I would have is that things may be a little more complicated in 2018 if you have an S Corp/ pass through business. I will probably do TurboTax again next year AND have an accountant look at my work as well, probably just for one year if I do ok with it.

 

[BLADEMDA]

Accountant

https://forums.studentdoctor.net/threads/how-to-choose-a-cpa.1240478/#post-18575089

 

[Lecithin5]

Are you guys really finding CPAs as cheap as 300 as I keep seeing on these message boards? If so, seems well worth it. I gotta find me one...

 

[Man o War]

Are you guys really finding CPAs as cheap as 300 as I keep seeing on these message boards? If so, seems well worth it. I gotta find me one...

Mine is 500-600 plus audit insurance if I choose to buy it, which I always do.

 

[dhb]

it gives me piece of mind.

You got my mind in a pretzel

 

[mostwanted]

Hired one last year, cross compared to my own values in turbotax, saved closed to $800 via turbotax plus $500 for not using him.

 

[urge]

Hired one last year, cross compared to my own values in turbotax, saved closed to $800 via turbotax plus $500 for not using him.

Do you guys realize CPAs use a software just like turbo tax to fill your taxes?

They are basically doing data entry.

The difference might be they know where to stretch the truth, like let's say claim a home office, or business expenses, etc.

 

[GA8314]

You got my mind in a pretzel

yeah yeah i edited it.....lol

 

[Mman]

Do you guys realize CPAs use a software just like turbo tax to fill your taxes?

They are basically doing data entry.

The difference might be they know where to stretch the truth, like let's say claim a home office, or business expenses, etc.

Considering my tax return is nearing 100 pages long, it's a little bit more than just data entry. It also lowers my chances of being audited and if I do get audited, it'll be awfully nice having a CPA there to defend it.

 

[dhb]

yeah yeah i edited it.....lol

 

[leaverus]

Do you guys realize CPAs use a software just like turbo tax to fill your taxes?

I was gonna say, isn't the sophisticated tax software these days pretty much a personal accountant on steroids??

 

[ssmallz]

You don't pay an accountant to do your taxes for this year, you pay him to plan your taxes for the year after so that you pay as little as possible. Anyone can enter numbers into turbo tax but a good accountant will know the intricacies for the tax laws and be able to set up a plan for you to minimize the amount of taxes you pay. Good accountants pay for themselves

 

[pjl]

You don't pay an accountant to do your taxes for this year, you pay him to plan your taxes for the year after so that you pay as little as possible. Anyone can enter numbers into turbo tax but a good accountant will know the intricacies for the tax laws and be able to set up a plan for you to minimize the amount of taxes you pay. Good accountants pay for themselves

I received personalized emails regarding my situation/recommendations from my accountant with each iteration of the new tax law. He sends a nice summary, I just tell him roughly what my this and next year income and charitable giving goals are, as well as what major purchases I plan to make. He knows all the partnerships/companies I am involved in, as well as roughly what their sale/earnings timeline is since he invests in similar.

He is very reasonably priced for the level of service provided.

 

[GA8314]

You don't pay an accountant to do your taxes for this year, you pay him to plan your taxes for the year after so that you pay as little as possible. Anyone can enter numbers into turbo tax but a good accountant will know the intricacies for the tax laws and be able to set up a plan for you to minimize the amount of taxes you pay. Good accountants pay for themselves

Agreed. You can get into trouble with TurboTax with things like short/long term capital gains (if you make any mistakes) and itemized deductions etc.. I imagine a new tax code as well is a big factor as 2018 may require some professional discretion or interpretation. I like the "certified" in the CPA. And, I do not think they are just glorified tax software utilizers. I just think they put together such a nice summary and having someone to refer the IRS to should you get audited gives me peace of mind.

Like I said, I used TurboTax for years, but with what we make, using a CPA absolutely makes sense to me. Too much to lose for $400-500/yr.

 

[deleted9493]

Probably a steal because our group has a deal with the firm but we have historically paid $150 for our returns.

 

[Sydney23]

Seems like you guys are half and half on whether to pay someone or do it yourself.... Thus far I've had a CPA, but want to try the other side. For those that do it themselves, what software do you use??? Is free software actually good, or should I spring for a paid software?

 

[deleted162650]

Seems like you guys are half and half on whether to pay someone or do it yourself.... Thus far I've had a CPA, but want to try the other side. For those that do it themselves, what software do you use??? Is free software actually good, or should I spring for a paid software?

The first time you try doing it on your own, you should still have your CPA do them as well. If you end up doing just as good, then you have your answer for the following year. That way, at least you have a little objective data on whether the CPA is worth it or not. I'll echo the above statement though that where CPA's are really worth it is in tax planning for the future - not filing this years return.