How to Choose Between DIY Tax Software and a CPA

Compare costs, complexity, and benefits to decide whether tax software or a professional preparer makes sense for your situation.

1. Add up your tax complexity factors. Count how many apply: multiple income sources, business or freelance income, rental properties, significant investment gains/losses, itemized deductions over $15,000, major life changes like marriage or divorce. Zero to two factors usually means simple taxes.
2. Calculate the cost difference. DIY software costs $50-120 for most people, while CPAs charge $200-600 for individual returns. Business returns cost $300-1,500 with a CPA. The more complex your situation, the smaller this cost gap becomes relative to potential mistakes.
3. Assess your time and confidence level. DIY takes 3-8 hours for most people, including data gathering and review. If you enjoy learning tax rules and double-checking your work, software works well. If tax forms stress you out or you're pressed for time, a professional saves mental energy.
4. Consider your audit risk and mistake tolerance. Software catches basic math errors but won't spot missed deductions or classify income incorrectly. CPAs carry professional liability insurance and can represent you in audits. If you're self-employed or have complicated investments, this protection often justifies the cost.
5. Make your choice based on the math. Go DIY if you scored 0-2 complexity factors, want to save money, and don't mind spending a weekend on taxes. Hire a CPA if you scored 3+ factors, earn over $100,000, or the peace of mind is worth more than the $300-400 cost difference.