6 Reasons You Should Avoid TurboTax and Hire a CPA
TurboTax is limited in ensuring that you don't miss out on important deductions and credits that can lead to huge tax savings. Without knowing the implications of your answers to all of the software's questions, you may be unknowingly making costly mistakes. Your CPA understands your financial situation and how to maximize your refund by utilizing all appropriate deductions and credits. He can even advise you on how to become eligible for future deductions or which deductions or credits you should not plan for in the future.
Nobody wants to be audited, and more importantly, nobody wants an auditor to find mistakes in their tax return that could result in high penalties and interest. TurboTax is limited in detecting errors. Your CPA will ensure a thorough, personalized tax return that is free of errors. He can also help you to understand your audit risk.
While TurboTax may be able to submit your return, it cannot provide personalized advice that could lead to future tax savings. Your CPA can provide tax planning that is unique to your situation and could lead to incredible savings.
If you find a mistake or something you overlooked with your TurboTax return, you may end up spending more money to have a CPA amend your return than it would have cost to have him do it correctly in the first place.
Tax law changes that have accompanied the Affordable Care Act (Obamacare) have made tax returns more complicated than ever before. Your CPA has the knowledge and expertise to ensure that this aspect of your return is clear, complete, and correct.
You may think you can make up for the shortcomings of TurboTax by being savvy on tax laws yourself. While this may seem responsible and cost effective, in reality it is a quite ambitious goal. Tax laws are continually changing and it is incredibly time consuming to keep up with them all. Save yourself the hassle and hire a professional who is dedicated to ensuring your best interest.