In what seemed to be a very dramatic day, I have an update to share regarding my 2022 taxes. If you read my recent post, you’ll know that I had in fact hired a CPA to file my 2022 taxes. However, in a twisting turn of events, I ended up filing them myself. Here’s the short story on what happened. 

Why I went with a CPA

In years past, I’ve always chosen to do my own taxes. I felt financially savvy enough to use online software but in years past I’ve always been a little iffy on the growing complexity of our taxes. Finally this year I got about halfway through doing my own taxes and decided to hire a pro. I asked around for a few references and got one that I felt I could trust and that could also do my taxes in time! It’ll end up being $400-$500 but in years past I’ve paid $250ish to do my own taxes, so $200 more didn’t feel too crazy for an expert to help and for the peace of mind that comes with it. In 2022 Mrs. Money and I had: multiple W2s and 1099s (self-employed contractors), Mrs. Money had her LLC, we bought a rental property and had income, I had crypto again (so dumb lol judging by how far it’s fallen) and we had donations to a handful of charities. Things just felt like they got to be a lot, and I found myself for the first time quite unsure about my own taxes. It was then that I decided to hire a professional! 

How I found one

I had to do a bit of shopping around to find a CPA. I first, like many of us, went to Google and was just overwhelmed with the number of CPAs in my city. Hiring a CPA felt like something I should have a personal reference from, so I went and asked a few friends. My first friend gave me a great recommendation for a local CPA that has good experience in the complexities that I was facing. I called this CPA, we got on an intro call and I sent him some stuff for which we was supposed to respond back with a high level quote based on my situation (I sent him previous tax returns). Fast forward 1 week…no reply…then 2 weeks…no reply. No responses to my emails or my texts. At this point it was late-March ish and I was panicking. Taxes are due April 18th and I knew it would take some time. 

So, I asked around again, got another recommendation but wah wah that CPA wasn’t accepting any new clients. So I tried again and got a recommendation from my Dad and thankfully this CPA was responsive and available! I hurriedly got my documents over and he got on it! 

Photo by Kelly Sikkema on Unsplash

What went wrong

So, as you’re probably seeing where this story is going, I waited too long to get started with a CPA. That great CPA was obviously busy at that time of year, but had assured me that my taxes would get done. However the days kept moving by and it was the week right before Tax Tuesday. Wednesday (t-minus 6 days) came and I shot him a text…”yup no worries we’ll get it done”….then Thursday and Friday roll by and then Saturday (t-minus 3 days). There was mention of me having to file for an extension which isn’t the end of the world but that just felt like an unnecessary headache that I didn’t want to have to deal with. So, Saturday I cleared my schedule and powered through where I had previously gotten stuck with H&R Block and made it out on the other side. The final numbers felt good – based on previous returns and I felt good about it. Ok, phew deep breath, if the CPA doesn’t come through I will be ok.

Sunday afternoon – same story “hey wrapping it up, almost done”. Yikes. Further complicating the matter (because it’s never easy) was the fact that I was leaving Monday morning for a work trip where I would be quite out of pocket. I woke up Monday morning stressed and THANKFULLY the email was that my taxes were done. I quickly scan through the highlights and notice that the federal number was about the same, but the state refund – the CPA had me getting back $800 less vs HR Block. I quickly thumb through but it’s tough to spot what made the difference. It’s almost time to go to the airport. I have a big decision to make – with whom do I do my taxes? 

Push comes to shove – I decide to go with H&R Block. Another factor I took into aside from the better financial outcome for me was the fact that H&R Block would let me pay/get the refund electronically – with the CPA I would have to send over a voided check via email. There were just a few too many last minute things that made me more nervous. I was really going to be out of pocket once I left for my work trip. So, I politely asked the CPA not to file (I did offer to pay for their time – it was valuable) and I filed with H&R Block. I’ve filed with them for the past few years and felt comfortable with the output – based on what I know about my financial situation and that the number was directionally accurate. I don’t love how it turned out but I think I made the right call!

What I’ll do next year

For my 2023 taxes, I plan to use that same CPA. My financial situation will only get more complicated this year (selling some company ESPP stock) and I’ll always have that nervousness of DIY my own taxes. However, I will be way more ahead of the curve and get my documents over in early February vs late March! I’m hopeful that will give the CPA plenty of time to get ahead of it and if there are concerns – I can review them with plenty of time! 

All that to say – if you are going with a CPA try to not wait until the last minute – and even more so start the process early! I lost a few weeks trying to get set up with a CPA!