Who Can DIY Their Taxes – and Who Should Use a Pro
For a lot of people, even money-savvy financial planners, it makes perfect sense to outsource this task ... and not just because it's aggravating.

There are always a handful of people that I run into this time of year who like to brag about the fact that they do their own taxes. Always have, they say — and always will.
The Cost of Financial and Tax-Related Mistakes
It’s all of those things above that can lead to less money in your pocket (not to mention a whole lot more stress and a lot less free time to enjoy things I assume you’d rather do than your own taxes). Any errors that you make on your tax return are likely to be far more expensive than any fees you’ll pay to a CPA.
The challenge with any tax-related mistake is that things tend to compound over time. Say you miss something on your tax return this year and pay less in taxes than you actually owed. If you get audited down the road, the IRS isn’t going to just shrug it off as “oh well, everyone makes mistakes.” You’re going to owe what you didn’t pay — with interest and penalties, too. According to the IRS, interest accrues on any unpaid tax from the due date until full payment is made, and late-payment penalties can add up to a maximum of 25% of the amount owed.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.

Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Making big mistakes that cost serious money or opportunities simply aren’t worth it. Not when it’s your hard-earned money on the line.
Who Needs a CPA – and Who Can Get Away with DIY
In general, most people will benefit from using a CPA. Even if your financial situation is relatively straightforward, you’ll save time and energy by getting help from a professional. You’ll also get added peace of mind that someone who lives and breathes taxes reviewed your situation. This makes mistakes less likely than if you did your taxes on your own, and also increases the likelihood that you’ll take advantage of every opportunity you can to reduce your tax bill.
All this being said, not everyone needs a CPA. Here’s a good general rule of thumb to use to help you determine if you can DIY: Do you have one source of income via a W2 from a single employer? Then you can probably get away with doing your own taxes. But the moment your financial situation gets any more complicated than that — say you earn 1099 income (even if it’s on the side of your full-time job and you don’t consider yourself “self-employed”) or you have enough deductions that you think it makes sense to itemize — it’s a good idea to find a CPA who can help you.
At the very least, you’ll save yourself time and stress, and any fee you pay to free up more time while reducing your stress is probably going to be well worth the cost.
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Eric Roberge, CFP®, is the founder of Beyond Your Hammock, a financial planning firm working in Boston, Massachusetts and virtually across the country. BYH specializes in helping professionals in their 30s and 40s use their money as a tool to enjoy life today while planning responsibly for tomorrow.
Eric has been named one of Investopedia's Top 100 most influential financial advisers since 2017 and is a member of Investment News' 40 Under 40 class of 2016 and Think Advisor's Luminaries class of 2021.
-
Seven Surprising Reasons Retirees Are Going Back to Work
Sure, money is a big reason to come out of retirement, but it's not the only reason retirees are doing it.
-
Dow Gains 617 Points as Rate Cuts Near: Stock Market Today
Wednesday's economic data didn't shift Wall Street's expectations that the Fed is preparing for a rate cut at next week's meeting.
-
Four Clever and Tax-Efficient Ways to Ditch Concentrated Stock Holdings, From a Financial Planner
Holding too much of one company's stock can put your financial future at risk. Here are four ways you can strategically unwind such positions without triggering a massive tax bill.
-
Beyond Banking: How Credit Unions Serve Their Communities
Credit unions differentiate themselves from traditional banks by operating as member-owned financial cooperatives focused on community support and service rather than shareholder profit.
-
Answers to Every Early Retiree's Questions This Year, From a Wealth Adviser
From how to retire in a crazy market to how much to withdraw and how to spend without feeling guilty, a financial pro shares the advice he's given this year.
-
The Risks of Forced DST-to-UPREIT Conversions, From a Real Estate Expert
Some new Delaware statutory trust offerings are forcing investors into 721 UPREIT conversions at the end of the hold period, raising concerns about loss of control, limited liquidity, opaque valuations and unexpected tax liabilities.
-
I'm a Financial Adviser: You've Built Your Wealth, Now Make Sure Your Family Keeps It
The Great Wealth Transfer is well underway, yet too many families aren't ready. Here's how to bridge the generation gap that could threaten your legacy.
-
Want to Advance on the Job? Showing Some Courtesy and Appreciation Could Help
Two business professors share their insights about the impact of digital communication on the social skills of some in Gen Z and the importance of good manners on the job.
-
From Job Loss to Free Agent: A Financial Professional's Transition Playbook (and Pep Talk)
The American workforce is in transition, and if you're among those affected, take heart. You have the skills, experience and smarts that companies need.
-
A Financial Planner's Top Five Items to Prioritize When Your Spouse Is Ill
During tough times, it's easy to overlook important financial details, but you'll be so much better off if you take care of these things right now.