What’s the Difference Between a CPA and a Tax Planner?
CPAs do the important number crunching for tax preparation and filing, but tax planners look at the big picture and come up with tax-saving strategies.


I was doing a workshop on tax planning in our community in Columbus, Ohio, when a self-assured CPA walked into the room. His confidence was overwhelming as he declared that not only did he already know everything I planned to discuss that evening, but he should be the one delivering the presentation.
I have a bit of a sense of humor, so I had to have some fun with him. During the workshop, I posed challenging questions about tax planning strategies we use with our clients, strategies that often remain unknown or misunderstood by many. I quizzed him on the ins and outs of Roth conversions, the tax implications of claiming Social Security at 62 vs 70 and the concept of a backdoor Roth IRA. As I expected, he did not have the answers.
Tax preparer vs tax planner
This man was a tax preparer, not a tax planner. There’s a difference between the two. Tax preparation is primarily about data entry and number crunching from January to April. On the other hand, tax planning is a year-round activity that involves proactive strategies to save as much money on taxes as possible. We specialize in the tax planning part.

Sign up for Kiplinger’s Free E-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.
We were able to humble that tax preparer, and fortunately, he is now a client. We have been able to save him hundreds of thousands of dollars in taxes from the planning strategies that we helped him implement.
Now, I’m not here to talk bad about CPAs. CPAs are great. I recommend everyone work with a CPA to ensure that their tax filing gets done correctly. However, tax planning is not usually a service CPAs provide in depth. It’s a complex process requiring a significant time investment and an intimate understanding of a client’s situation and goals, which most CPAs don’t have the bandwidth to handle.
Tax planners take a deep dive into your taxes
For many of the clients we work with, it can take upwards of 20-plus hours to build a comprehensive tax plan. This involves a deep dive into their tax return from last year to see what we missed and what opportunities they have. Oftentimes, these strategies consist of Roth conversions, tax loss harvesting, tax-efficient income planning for income, Social Security claiming strategies with the impact of taxes and planning to make sure beneficiaries receive as much money as possible with the least tax burden.
All of these are items that most CPAs do not do and that involve a more sophisticated tax plan. They would also need to understand your situation and your goals fully. Most CPAs do not have detailed conversations with you to understand everything outside of the numbers.
To sum up, many retirees miss out on tax planning opportunities simply because they are unaware such possibilities exist. Because of this, I’ve made it my mission to guide as many retirees as possible toward integrating tax planning into their retirement planning strategies, which can significantly reduce one of the biggest expenses in retirement. I even wrote a book, titled I Hate Taxes that shares insights into minimizing tax liabilities through effective planning.
The appearances in Kiplinger were obtained through a PR program. The columnist received assistance from a public relations firm in preparing this piece for submission to Kiplinger.com. Kiplinger was not compensated in any way.
Related Content
- Is Your Financial Adviser Doing a Good Job for You?
- Five Estate Planning Things You Need to Do Now
- Estate Planning: Who Needs a Trust and Who Doesn’t?
- Do You Have at Least $1 Million in Tax-Deferred Investments?
- Do You Have the Five Pillars of Retirement Planning in Place?
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.

As Founder and CEO of Peak Retirement Planning, Inc., Joe Schmitz Jr. has built a comprehensive retirement planning company focused on helping clients grow and preserve their wealth. Under Joe’s leadership, a team of experienced financial advisers use tax-efficient strategies, investment management, income planning and proactive health care planning to help clients feel confident in their financial future — and the legacy they leave behind. Joe has also written two Amazon bestselling books, I Hate Taxes (request a free copy) and Midwestern Millionaire (request a free copy). You can find Joe on YouTube by clicking here, where he creates educational videos for those in or near retirement with $1M or more saved.
-
Callable CDs Have High Rates. We Still Don't Recommend You Get Them
Investors must carefully consider the trade-offs, as falling interest rates could lead to reinvestment at a lower yield and make selling on the secondary market difficult.
-
High Mortgage Rates Are Holding My Retirement Hostage: Can I Still Downsize and Retire?
We ask retirement wealth advisers what to do.
-
Five Big Beautiful Bill Changes and How Wealthy Retirees Can Benefit
Here's how wealthy retirees can plan for the changes in the new tax legislation, including what it means for tax rates, the SALT cap, charitable giving, estate taxes and other deductions and credits.
-
Portfolio Manager Busts Five Myths About International Investing
These common misconceptions lead many investors to overlook international markets, but embracing global diversification can enhance portfolio resilience and unlock long-term growth.
-
I'm a Financial Planner: Here Are Five Smart Moves for DIY Investors
You'll go further as a DIY investor with a solid game plan. Here are five tips to help you put together a strategy you can rely on over the years to come.
-
Neglecting Car Maintenance Could Cost You More Than a Repair, Especially in the Summer
Worn, underinflated tires and other degraded car parts can fail in extreme heat, causing accidents. If your employer is ignoring needed repairs on company cars, there's something employees can do.
-
'Drivers License': A Wealth Strategist Helps Gen Z Hit the Road
From student loan debt to a changing job market, this generation has some potholes to navigate. But with those challenges come opportunities.
-
Financial Pros Provide a Beginner's Guide to Building Wealth in 10 Years
Building wealth over 10 years requires understanding your current financial situation, budgeting effectively, eliminating high-interest debt and increasing both your income and financial literacy.
-
You're Divorced, But the Work Isn't Over: A Guide to Five Financial Tasks to Do ASAP
Once your divorce is settled, don't waste time. You've got to tie up some important loose ends or risk losing money and facing tax consequences.
-
Five Mistakes to Avoid in Your First Year of Retirement
Retirement brings the freedom to choose how to spend your money and time. But choices made in the initial rush of excitement could create problems in the future.