Do You Need a CPA to File Your Taxes?

Gavin Pucciarello |

Filing taxes can be overwhelming, especially when you have multiple sources of income or need to navigate various deductions and credits. It’s a common question for many: do I really need a Certified Public Accountant (CPA) to handle my taxes? While not everyone requires a CPA, there are situations where their expertise can simplify the process and help you avoid costly mistakes.

What Does a CPA Do?

A CPA is a licensed professional who specializes in tax and accounting matters. They go beyond basic tax filing by passing rigorous exams and meeting ongoing education standards to maintain their certification. This makes them experts in managing your financial situation.

A CPA can assist with more than just tax preparation. They offer financial planning, investment management, and business structuring advice to help you make the most of your tax benefits. Their expertise can provide valuable guidance in both personal and business finances.

Can I File Taxes Without a CPA?

Yes, you can file your taxes without a CPA. Many people use tax software or hire non-CPA tax preparers to file their returns. If your tax situation is simple—say, you have a steady job, file as a single taxpayer, and don’t have many deductions—filing yourself might work fine. With the help of user-friendly software, the process is more accessible than ever.

However, if you have a more complicated situation, such as owning a business, multiple income streams, or investments, it may be time to consider working with a CPA.

When Should You Consider Hiring a CPA?

If you find yourself in any of the following situations, it might be time to hire a CPA for your tax needs:

  • You Own a Business: Running a business comes with many tax complexities, from deducting business expenses to handling payroll taxes. A CPA can help you navigate these challenges and avoid mistakes.
  • You Have Multiple Income Sources: Freelancers, real estate investors, or anyone with multiple income streams will benefit from a CPA’s expertise in managing complex tax situations and maximizing deductions.
  • You’re Facing Tax Issues: If you're behind on taxes or facing an IRS notice, a CPA can help resolve these issues, negotiate settlements, and set up payment plans.
  • You Want to Maximize Deductions and Credits: A CPA understands tax laws and can identify deductions and credits that may be missed otherwise. They can help lower your overall tax liability by advising on everything from home office expenses to medical deductions.

Benefits of Hiring a CPA for Tax Filing

Hiring a CPA offers several advantages, making tax filing easier and more accurate. Here are some key benefits:

  • Expert Knowledge: Tax laws are always changing. A CPA stays current with these changes, ensuring you file according to the latest regulations. They can also help reduce your tax bill by offering advice on legal tax-saving strategies.
  • Time-Saving: Tax filing can be time-consuming. A CPA handles the details, giving you more time to focus on what matters most—whether it’s your business or personal life.
  • Avoiding Errors: Filing taxes on your own can lead to mistakes, resulting in audits or penalties. A CPA ensures your return is accurate, reducing the chance of errors.
  • Personalized Advice: Every financial situation is unique. A CPA provides tailored advice to match your needs, helping you plan for the future and minimize taxes.

Can a CPA Help You Year-Round?

One advantage of working with a CPA is that they offer year-round support. They can help with tax planning throughout the year, making it easier to reduce your tax burden before tax season arrives. A CPA can also advise on other financial matters, such as retirement planning or investment strategies, so you're financially sound all year.

Need help filing your taxes? The team at Bumgardner Morrison & Co LLP is ready to assist you. Contact us today to get started and make tax season easier.