When to Hire a Tax Accountant: Is It Time to Stop Doing Your Own Taxes?

May 30

Many people wonder at some point: Should I keep doing my own taxes, or is it time to hire a tax accountant? If your tax situation is simple—say, you only have W-2 income and take the standard deduction—you’re probably fine handling it yourself. But once your finances become more complicated, working with a tax professional can save you time, money, and stress.

In this post, we’ll break down when it makes sense to keep filing your own tax return—and when you should consider hiring a tax accountant or CPA.

When You Don't Need a Tax Accountant

If all of the following are true, you're likely fine using DIY tax software:

Your only income is from a W-2 job
You don’t own a business or rental property
You don’t have major itemized deductions
You’re not dealing with investment income or stock sales
You’re claiming the standard deduction

In these cases, software like TurboTax, TaxSlayer, or FreeTaxUSA will typically walk you through the process just fine. You can save hundreds of dollars on preparation fees without much risk.

When to Hire a Tax Accountant or CPA

As soon as your financial life becomes more complex, the value of a tax professional increases. Here are key signs it’s time to stop doing your own taxes:

1. You’re Self-Employed or Own a Small Business

This is one of the biggest reasons to hire a tax preparer. Unlike W-2 employees, self-employed individuals don’t have taxes withheld automatically. That means you're responsible for making estimated quarterly tax payments to avoid a large bill and penalties at tax time.

A tax accountant can help you:

Calculate and schedule your quarterly estimated taxes
Maximize deductions for business expenses
Navigate rules around home offices, vehicle expenses, and depreciation
Evaluate tax-saving strategies like S corporation elections or retirement plan contributions

2. You Own Rental Property

Rental income comes with its own set of challenges, including depreciation, passive loss rules, and complex reporting requirements. A tax accountant can help ensure you’re:

Claiming all eligible expenses (repairs, property management fees, etc.)
Depreciating property correctly
Avoiding costly errors when selling the property

3. You Receive a Schedule K-1 from a Partnership or S-Corp

K-1s report your share of income, losses, and credits from a business or investment partnership. These forms often require adjustments based on your basis in the business—something many DIY filers overlook.

Hiring a tax accountant helps ensure:

You report your income accurately
You avoid audit risks tied to improper reporting
You track basis correctly year to year

4. You’ve Had a Major Life Change

Got married? Divorced? Had a child? Bought a house? Inherited assets?

All of these can impact your taxes in meaningful ways. A tax professional can help you:

Choose the right filing status
Claim new credits and deductions
Avoid common pitfalls in years with big transitions

5. You’re Paying Too Much—or Too Little—in Taxes

If you owed a lot last year or got a huge refund, that’s a sign your withholding or estimated payments are off. A CPA or enrolled agent can help adjust your approach and fine-tune your tax strategy going forward.

Tax Planning: The Hidden Value of Hiring a Tax Pro

It’s not just about filing your return. A good tax accountant offers year-round planning to help you:

Reduce your overall tax burden
Make smart decisions on timing income and expenses
Understand the tax impact of major purchases or investments

If you own a business, tax planning is often where the biggest savings are found.

Do I Need a CPA to File My Taxes?

Not necessarily. Many excellent tax preparers are Enrolled Agents (EAs)—federally licensed tax professionals authorized to represent taxpayers before the IRS. Whether you work with a CPA or EA, what matters most is finding someone with experience in your specific tax situation.

Final Thoughts: Should You Do Your Own Taxes or Hire a Pro?

Here’s a quick rule of thumb:

W-2 only? DIY is probably fine.
Own a business or rental? Hire a tax pro.
Received a K-1? Hire a tax pro.
Big life changes? Probably time to get help.

Still not sure? Consider reaching out for a quick consultation. Many tax professionals offer a free or low-cost initial meeting to help assess whether their services make sense for you.

Paul Armstrong