Do I Need a Tax Accountant? Here’s How to Know and What to Do Next
Tax season brings with it a mix of anticipation, confusion, and, let’s be honest, stress. If you've found yourself staring at confusing IRS forms or worrying you might miss out on valuable tax deductions, you're not alone. One of the most common questions people ask is: Do I need a tax accountant?
Whether you're filing a basic individual tax return or navigating a more complicated tax scenario involving investments, rental income, or self-employment, this guide will walk you through what to consider—and when hiring a professional can actually save you time, stress, and money.
What Does a Tax Accountant Do?
A tax accountant is a licensed professional who focuses on tax law, tax preparation, and tax planning. They help individuals and businesses prepare and file their taxes, provide tax advice, and stay on top of federal and state tax regulations.
They can help with:
Understanding the tax code specific to your personal or business situation
Identifying tax deductions you might overlook on your own
Filing tax returns, ensuring compliance with IRS rules
Strategic tax planning for the year ahead to minimize future tax liability
Assisting with audits or IRS correspondence
When you're searching for someone to handle your tax obligations, you’ll likely come across different options—including a tax accountant, tax preparer, or CPA (Certified Public Accountant). So, what’s the difference?
The Difference Between a CPA and a Tax Preparer
Understanding the difference between a CPA and a tax preparer will help you decide who fits best with your situation.
Tax Preparer
A tax preparer is typically someone who has experience preparing tax returns but may not have formalized accounting credentials. Many tax preparers are seasonal workers who complete basic tax forms. Some are registered with a Preparer Tax Identification Number, which is required to legally file others' tax returns.
Many tax preparers offer tax preparation services for straightforward returns.
They are often more affordable for simple tax situations.
They may not have training in more complex areas of tax law.
CPA (Certified Public Accountant)
A CPA, or Certified Public Accountant, holds a state license to practice accounting. To become a CPA, professionals must pass the Uniform CPA Exam, have a degree in accounting or business, and meet strict ethics and experience requirements. This designation is a professional credential demonstrating expertise in finance, audit, and tax.
A CPA can help with strategic tax planning, complex returns, business finances, and audits.
CPAs undergo continuing education to stay up to date with state and federal tax laws.
Many provide ongoing financial advice well beyond tax season.
So, do you need a tax accountant or a CPA?
The answer depends on your tax situation. Let’s explore further.
When You Might Need a Tax Accountant
Some scenarios make hiring a tax accountant a smart move. If any of the situations below apply to you, you might want to hire a tax professional this year:
You Have Self-Employment or Freelance Income
If you’re a sole proprietor, freelancer, or run a limited liability company (LLC), your business tax return can be far more complicated than a standard individual tax return.
A tax accountant can help with:
Tracking business expenses and depreciation
Navigating self-employment taxes
Planning for quarterly estimated taxes
Filing business tax forms accurately
You Bought or Sold a Home or Investment Property
Handling capital gains, rental income, and property-related deductions requires a solid understanding of current tax regulations. An accountant can help minimize your tax liability related to investment or real estate income.
You Made Significant Investments
Trading stocks, cryptocurrency, or receiving large dividends adds layers to a tax return. A CPA or tax expert can help clarify capital gains, investment income, and potential losses.
You Want Help With Tax Planning
Beyond just filing returns, an accountant can help with strategic tax planning advice that guides your year-round financial decisions. This often includes:
Retirement contributions
Estate planning
Charitable donations
Maximizing tax credits like the earned income tax credit
Signs You Should Hire a CPA
Sometimes, your financial and tax life becomes complex enough that it’s time to hire a CPA as your go-to tax and financial adviser.
Consider hiring a CPA if:
You own multiple income-generating assets
You're planning to sell a business or stock
You’re navigating student loan interest deductions
Your income significantly increased or dropped this year
You recently inherited money or need help with estate strategies
You’re facing an IRS audit or received a tax bill you don’t understand
A CPA can help you understand the long-term impact of financial decisions and prepare accordingly.
What If You Have a Simple Tax Situation?
For simple filings—think employment-based income (i.e., W-2s), little to no deductions, and no dependents—you might not need to hire an accountant. Instead, consider:
Using IRS e-file or Free File Alliance software like TurboTax
Attending a Volunteer Income Tax Assistance (VITA) event
Using the IRS tax filing requirements tool to check if you need to file: IRS tax filing requirements tool
If you qualify for the standard deduction and have minimal income outside of wages, you may be able to prepare and file your taxes yourself.
Hiring a Tax Preparer vs CPA: What to Consider
There’s no one-size-fits-all answer. So when choosing a tax professional for your situation, ask these questions:
What kind of tax return do you need?
If it's a straightforward individual tax return, a basic tax preparer might be fine. For anything more complex, a CPA or tax accountant can provide deeper insights and accuracy.
Do you qualify for uncommon tax credits or deductions?
If you're planning to claim the earned income tax credit, education credits, or complex itemized deductions, work with someone who understands the latest tax law updates.
Are you a business owner?
A tax accountant may be able to help you leverage your business for tax deductions, retirement accounts, and even insurance-related benefits that affect your federal tax obligations.
Have you had IRS issues?
If you've received a letter from the Internal Revenue Service, are being audited, or need help with an amended return, hiring a CPA or, in extreme cases, a tax attorney is advisable.
How to Choose the Right Tax Professional
When looking to find a tax professional, especially a tax accountant near you, consider:
Their credentials (CPA, Enrolled Agent, Licensed Tax Preparer)
Years of experience with your kind of tax situation
Whether they offer tax planning, not just preparation
Their fees and how they're structured (flat rate, hourly, per form)
Here are key credentials to look out for:
If you already have an accountant but feel unsure about their advice, it's okay to seek a second opinion or hire an accountant who’s a better fit.
How AY Miller Can Help You Navigate All of This
If you’re based in Denver and feeling overwhelmed by your current tax preparation and filing tasks, AY Miller is here to help. Whether your situation is straightforward or complicated by multiple income sources, education expenses, or small business operations, our team of professionals knows tax preparation in the United States inside and out.
You can trust our expert guidance on everything from annual filing season program deadlines to corporate tax planning. We make sure you’re in compliance with the IRS, paying what you owe—and not a cent more.
If you're looking for a trusted tax accountant in Denver, we’d be happy to talk through your situation and offer guidance that makes sense for you.
Final Thoughts: Do You Need a Tax Accountant?
Only you can decide if your tax situation requires professional help—but you don’t have to make the call alone.
If any of the following apply, it's smart to consult a tax professional:
You’re not confident handling your taxes alone
Your return includes multiple types of tax income (like rental, business, or investments)
You want to minimize your tax bill or understand long-term strategies
Even if you’re just feeling unsure, it never hurts to have a conversation. A CPA you’re considering should explain things clearly, without overwhelming you with jargon or pressure.
Still not sure? Reach out and see what working with an accountant can do for your peace of mind and your financial future.
Let this tax season be the one where you feel confident, informed, and stress-free.
