Picked a CPA over DIY tax software and it cost me $600 extra

I was so sure I could handle my own taxes this year. Used TurboTax for the last 3 years and thought I had it down. But my business grew a lot in 2023 and I had income from 3 different states plus a 1099-NEC from a client in Oregon. I spent like 8 hours entering everything and still got confused about the home office deduction. So I hired a CPA for $400. She found out I missed a $1,200 deduction for my internet and phone plus I could have deducted my coworking membership. But here's the thing - she also said I needed to file in Oregon even though I never set foot there. That triggered a $600 tax bill I would have totally missed if I did it myself. So I paid $400 to find out I owe $600. Feels kinda backward. Anyone else had a CPA find something that actually cost you more money?

2 comments

2 Comments

sullivan.quinn14h ago

Did you ever think about just not claiming some deductions to keep things simpler? Like one year I had a freelance gig where I could write off my dog as a guard dog for my home office. Saved me $80 on taxes but then I had to prove he was a "business expense" for like 3 years after that. Wasn't worth the hassle honestly. Might be easier to just pay the $600 and move on with your life.

finley_smith1h ago

@sullivan.quinn you make a really good point honestly. That guard dog story is wild but I totally get it. I skipped claiming a small home office deduction one year because the paperwork was more annoying than the money saved. Sometimes peace of mind is worth more than the $50 or whatever you'd get back. Just pay the $600 and move on with your life.