CPA vs Tax Software: Is a Professional Worth the Cost?
TurboTax is cheap, but a CPA can save you thousands in missed deductions. Here is the break-even point where paying a pro becomes the smarter investment for your wallet.
Software
~$120
Avg Paid Ver.Cheap
CPA Rate
~$450
Avg ItemizedQuality
The Gap
$330+
Worth it?Compare
2026 Price Comparison Table
We surveyed average costs for filing a standard return with itemized deductions (Schedule A).
| Method | Avg Cost (Est) | Best For |
|---|---|---|
| DIY (TurboTax) | $0 – $130 | W-2 Only |
| Chain (H&R Block) | $250 – $350 | In-Person Help |
| CPA / EA | $450 – $900+ | Biz / Rental |
| Support | Chatbot | Human Strategy |
What is an EA?
“Enrolled Agent.” They are tax specialists licensed by the IRS. They are often cheaper than CPAs but equally qualified for tax preparation.
Value Proposition
| Complexity | Winner |
|---|---|
| Simple | Software |
| Complex | CPA |
The “Do I Need a CPA?” Checklist
If you check even one of these boxes, hire a professional. The software is likely to miss something subtle.
- Business Owner: You have a Side Hustle (Schedule C) earning over $10,000.
- Real Estate: You own Rental Properties (depreciation rules are tricky).
- Crypto Trader: You have thousands of transactions or DeFi activity.
- Multi-State: You moved states or worked remotely in multiple states.
- High Income: You earn over $200k and are subject to AMT or NIIT.
Warning: The “Audit Defense” Upsell
Tax software often scares you into buying “Audit Defense” for an extra $60.
The Reality
If you hire a CPA, they generally stand behind their work (though representation fees may vary).
With software, you are often buying a third-party insurance policy that may or may not cover your specific error. Read the fine print.
Frequently Asked Questions
Are tax prep fees tax-deductible?
Generally No. For W-2 employees, the deduction for tax prep fees was eliminated.
However, if you are a Business Owner (Schedule C), you can deduct the portion of the fee related to preparing your business taxes.
When should I hire one?
Don’t wait until April. Good CPAs are fully booked by February. Start looking in January or even December.