Most CPA firms market themselves to high-income, complex clients because that's where the high fees are. The unspoken implication is that simple returns are beneath a CPA — that you should DIY them with software, or take them to a seasonal preparer at a strip mall.
We don't see it that way. About a third of our individual clients have what people would call a "simple" return — a W-2 or two, maybe some interest income, a 1099 from a side hustle, a mortgage. We work with them for the same reason we work with multi-entity owners: because the cost of getting it wrong is usually larger than the cost of getting it right.
Where simple returns go sideways
Tax software is excellent at filling out forms. It is not excellent at noticing things you didn't ask about. Common ways simple returns lose money or invite trouble:
- Missed credits. Earned Income Tax Credit, Saver's Credit, Child and Dependent Care Credit, the Premium Tax Credit reconciliation. Software asks; software does not advocate. If you click "no" too quickly, the credit is gone.
- Incorrect filing status. "Head of Household" is worth thousands but has specific rules about who's a qualifying person and how much support you provided. Software defaults toward Single or MFJ.
- State residency mistakes. If you moved during the year, you have a part-year resident situation. Software will let you file as if you didn't.
- 1099-K from payment apps. Venmo and PayPal now issue 1099-Ks for amounts you may not actually owe tax on. Software dumps it onto Schedule C unless you tell it otherwise.
- HSA or 529 reporting. Forms 1099-SA and 1099-Q look scary; software occasionally double-counts the income.
The notice question
When a return is filed and a notice arrives 18 months later, the question becomes: who responds? The DIY filer is on their own. They have to learn the IRS's correspondence procedures, request transcripts, draft a response, and chase the case to closure. It's a 10-hour project minimum, and it's stressful.
When we file the return, that 10-hour project is something we do twice a week. We can usually have a CP2000 or CP14 closed in 30 days. Many of our clients value that single fact more than anything we do during preparation itself.
What "simple" really costs us
Here's the part that gets glossed over in most CPA marketing: a simple return doesn't take long for a CPA to prepare correctly. A W-2 + interest + standard deduction return is 30–45 minutes if the documents are organized. Pricing reflects that.
The reason to use a CPA on a simple return isn't because the preparation is hard — it's because the decisions around the preparation matter:
- Should you bunch deductions this year and skip next?
- Is your withholding correct, or are you giving the IRS an interest-free loan?
- Is your IRA contribution deductible given your spouse's coverage?
- Should you contribute to a Roth or a Traditional?
- Did your kid's summer job push them into a 1040 of their own?
When DIY actually is fine
We'll tell you straight: if you have one W-2, take the standard deduction, no kids, no side income, and no state moves — software is fine. The return doesn't have decisions in it. Use FreeFile through the IRS and save the money.
Anything more than that — even a single 1099, a single move, a single child, a single rental property — and the math we run is pretty consistently in favor of getting a CPA's eye on it. Often the credits we find pay for the engagement. Sometimes the issue we catch saves you from a multi-year problem.
If you're on the fence, send us a note with a quick sketch of your situation. We'll tell you honestly whether you need us.