CPA vs DIY Tax Filing in 2025: Costs, Benefits, and What’s Best for You

Giselle M. Cancio brings over a decade of expertise in editorial writing and content creation across personal finance, education, travel, and sports. Her articles have appeared on NerdWallet, Associated Press, NBC, ABC, CBS, Fox Sports, and more. She holds a master’s degree from Arizona State University.

Tax season in 2024 can seem daunting, but you have multiple options for filing your taxes efficiently. Nearly half of U.S. taxpayers rely on tax software to prepare and submit their returns, according to a recent College Investor survey. However, tax filing involves more than just entering numbers and sending forms to the IRS.

Key Insights

• Becoming a CPA requires rigorous education, exams, and ongoing training.
• Your filing choice depends heavily on the complexity of your income sources.
• DIY tax filing is cost-effective, with some free IRS-supported programs available.

"Hiring a CPA means having expert support if the IRS questions your return," explains Deb Camp, a certified public accountant based in Linwood, NJ.

What It Takes to Become a CPA in 2024

While CPA requirements vary by state, common criteria include a minimum of 150 college credit hours and a bachelor’s degree. Experience requirements differ, with some states like Indiana requiring two years under a licensed CPA’s supervision. Candidates must pass the Uniform CPA Examination and often an ethics exam. CPAs also complete continuing professional education annually to stay current on evolving tax laws.

Simple vs Complex Tax Returns

For individuals with straightforward W-2 income, preparing your own tax return is usually safe and affordable. The W-2 form reports wages, benefits, and taxes withheld by your employer.

However, if you receive income reported on 1099 forms—such as from freelance work, investments, or asset sales—the filing becomes more complex. There are 21 types of 1099 forms covering various income streams like royalties, retirement distributions, and prizes. Since taxes aren’t automatically withheld on 1099 income, and deductions may apply, handling these requires careful attention.

Tax Preparation Costs in 2024

According to the National Society of Accountants, professional tax preparation fees can range from $220 to over $1,200 depending on return complexity and location. Hourly rates typically fall between $150 and $200+. In contrast, tax software is much more affordable: TurboTax Deluxe charges $79 for federal filing in 2025, while TaxSlayer offers rates as low as $23 for basic returns. State filings usually incur an additional fee.

Cost Considerations

Many taxpayers weigh the cost of tax preparation carefully, factoring in both complexity and potential risks.

Free Filing Options

The federal government offers several free filing programs to ease financial burdens. IRS Direct File allows free online filing but is limited to basic Form 1040 returns in 25 states. IRS Free File is available nationwide for taxpayers with adjusted gross incomes up to $84,000 and supports more complex returns through partner software.

Additional free services include Volunteer Income Tax Assistance (VITA) for those earning $67,000 or less, individuals with disabilities, or those needing language help. Tax Counseling for the Elderly supports taxpayers aged 60 and above.

When Issues Arise

"Filing on your own beyond simple returns can lead to costly errors and frustration," warns Camp. "Many returns prepared by DIY services require amendments or professional intervention." The IRS offers Taxpayer Assistance Centers for help, but appointments and proper identification are required. Note that support levels differ from what a CPA provides.

Final Verdict

Choosing between DIY tax filing and hiring a CPA depends on your tax situation’s complexity. Affordable tax software suits simple returns, but if you have multiple income streams or deductions, a CPA offers peace of mind and expert defense during audits or IRS inquiries.

"A CPA not only prepares your return but also advises on risks and represents you if the IRS challenges your filings," Camp concludes.

Explore useful articles in Taxes as of 11-05-2024. The article titled " CPA vs DIY Tax Filing in 2025: Costs, Benefits, and What’s Best for You " offers in-depth analysis and practical advice in the Taxes field. Each article is carefully crafted by experts to provide maximum value to readers.

The " CPA vs DIY Tax Filing in 2025: Costs, Benefits, and What’s Best for You " article expands your knowledge in Taxes, keeps you informed about the latest developments, and helps you make well-informed decisions. Each article is based on unique content, ensuring originality and quality.