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Posted: 3:10 p.m. Monday, Jan. 28, 2013

Signs you may need a CPA 

By Nedra Rhone

I've done my taxes on my own for at least a decade and I'm not talking that 1040 EZ stuff.

Mostly I'm too cheap to let someone else do them but I also think I should know what's going on with my money.

This year, I'm thinking maybe I should get some help... and I'm not alone.

More Americans, it seems, are considering outsourcing their 2012 taxes.

A local rep from Jackson Hewitt notes how confusing 2012 has been for taxpayers saying, ".. the IRS pushed back the date when they would begin accepting returns to January 30, indicating just how complicated the American Taxpayer Relief Act of 2012 tax law changes are. If taxpayers miss claiming deductions and credits on a tax return, the IRS isn’t going to add them on, which could leave much-needed dollars on the table."

And nobody wants to leave money on any table.

Here are a few signs that you may need to consult a professional tax preparer:

You've had a significant life change. A baby, a divorce, the purchase or loss of home and a new job can all affect your taxes. A Certified Public Accountant can make sure you don't overpay.

You are totally confused and can't get by with submitting a 1040. If you have to complete multiple forms, electronic services or even tax prep services may not serve your needs. A CPA can make sure you get all the deductions for which you qualify.

You have the money. Obviously hiring a CPA costs more money than going it alone. According to the National Society of Accountants (NSA) hiring a tax preparer costs an average of $246 for an itemized Form 1040 with Schedule A and a state tax return. But if the tax preparer catches one additional reduction or credit, it can likely pay for the cost of service.

Need to find a CPA?

Ask friends and colleagues for referrals. Most are happy to offer up the names of competent professionals who may be able to assist you.

Verify credentials. To confirm a CPA has an active license, consult the Georgia State Board of Accountancy (note: I've linked to the site, but it has been timing out all afternoon.)

Know the cost. Have any CPA you're considering give you an estimate of the cost to prepare your returns with electronic filing.

Do you plan to use a CPA to file your 2012 taxes? Why or why not?

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Nedra Rhone

About Nedra Rhone

Nedra Rhone finds and shares tips on money, deals and consumer issues in metro Atlanta for the AJC.

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