NFT: When is it worthwhile to use a CPA for taxes?

Better to start before you begin investing, starting corps, etc. than to have to find one when you're at that point.

Can't imagine it'd cost you more than a few hundred bucks, if that.

to use a CPA once your return becomes more complicated than the short form. Also, I would recommend speaking with a financial planner to begin the process of planning your financial future. It is never too early to begin this process.

Can you guess what I do fro a living?

Best of luck to you.

and bought a house and sold our place in NY. Now my husband is self employed, so it's worth it for us. He does a great job and only charges us about $300. We are good about keeping track of our expenses. Plus we like him and he gives us plenty of good advice. And I don't have to mess with any of the forms. I'd say it's worth it.

you doing them on your own

now that you are on your own and essentially have a business, you are legally entitled to many tax deductions. So, it is not as simple as just finding someone to do your taxes. You also need to find someone who knows how to turn what may seem to be daily expenses into business expenses.

Here is a small but yet perfect example. If while playing golf you spend a couple of minuted to discuss your practice with whoever you are paired up with and then also hand him your business card, that golf round essentially is now a legal expense. Maybe not the smartest use of your money but still legal.

Everyone should start a business no matter what it is. You can incorporate for little to no money online.

Or otherwise become a business owner, that would be the time. Even then, you could still probably manage it yourself, but it would be a major drudge and the CPA might pay for itself depending on circumstances.

Until then, there's no real need for a CPA. You should be able to handle it yourself. Now if you hate it and want an excuse to pay someone, then go for it.

can't agree more.

Above is very good. What I have done is the following. I used a cpa when I was in college. Then, turbo tax came out. I used a cpa and compared the two (as you didn't need to pay turbo tax to get their result). I found TurboTax was very close, so the next few years I used TurboTax. When I bought a house, I tried TurboTax and a cpa (again, TurboTax is free to try). Once I was satisfied TurboTax was close enough, I didn't used a cpa until I changed circumstances (like got married, bought a house etc.) then figured whether TurboTax was right for my change in circumstances.

and it depends on how much free time you want to spend on doing your taxes.

In comment 12803124 EricJ said:

Quote:

now that you are on your own and essentially have a business, you are legally entitled to many tax deductions. So, it is not as simple as just finding someone to do your taxes. You also need to find someone who knows how to turn what may seem to be daily expenses into business expenses. Here is a small but yet perfect example. If while playing golf you spend a couple of minuted to discuss your practice with whoever you are paired up with and then also hand him your business card, that golf round essentially is now a legal expense. Maybe not the smartest use of your money but still legal. Everyone should start a business no matter what it is. You can incorporate for little to no money online.

Actually, your golf example is not a valid deduction. In order to be valid, you would have to have substantive business discussions that take place in a business setting before or after your round.

and uses Turbo tax.

In comment 12803391 aimrocky said:

Quote:

and uses Turbo tax.

This.

Seriously :)

I bought a house and had kids. I could find someone cheaper, but he doesn't charge me anything if I call him a few times over the course of the year with questions. Spending a few hundred per year on accountant is no big deal for me. Time, on the other hand, is in short supply. I pay for many things I could do myself (e.g., some home repairs) because trading time to save a little money is not worth it to me.

if you're just salaried at a hospital/practice, that alone doesnt make your taxes complicated enough for a CPA. Same with homeownership and simple stock/ETF/mutual fund investing.

As for a personal financial advisor, IMO it is better to do do some self-education first. Most new grad doctors need to balance paying down debt, making an emergency fund, saving for retirement/wealth growth, (if you want) saving for a down payment, and a curveball (e.g. helping or planning to help a family member financially). It's not super hard to come up with a general plan for that.

want someone to lie for you.

Seriously, I just started another business because, even though retired, I was going to have to start paying. The help I pay will now go on a payroll, I'll actually be able to do some more things to the property and have it deductible.

My CPA, never had one before, said just give me all your receipts. I'll decide what you can right off, what your paying me for.

For the little I'm paying him? Well worth it as I have had side businesses before and did it myself.