Q:

Subject: false choice

It seems like every year I'm faced with a false choice: fill out my own taxes with the help of tax software like TurboTax or work with a professional.

This isn't CPA bashing. $200/hr to fill out forms seems pretty steep, but I would pay double that for advice that really saved me money. I would vastly prefer to work with a tax accountant who adds value by improving my tax return.

So is there a way to work with a CPA in combination with a package like TurboTax?

A:

You're exactly right, and that is precisely what I tell other tax pros who are worried about TurboTax and other DIY tax software costing them a loss in business.  It is a waste of time to pay someone to just fill in tax forms without adding any of their knowledge and expertise, when you can just use TurboTax to do that.

As I've also said on several occasions, I have had some clients use TurboTax instead of my normal organizer as a means of sending me their year-end data. When I am finished, the final returns usually bear little resemblance to the original TurboTax version because I move things around and fine tune the return to be both legally correct, as well as coming up with the lowest tax possible.

If you haven't already done so, you should check out my tips on how to select the right tax preparer for you.

Good luck.

Kerry Kerstetter

 

- posted by Kerry M. Kerstetter, MBA~CPA~ATP~ATA @ 3/13/2006 10:09:00 PM Send this post: