An answer to Is TurboTax better than a CPA? Both Certified Public Accountant (CPA) and TurboTax offer tax preparation and filing services.
Both Certified Public Accountant (CPA) and TurboTax offer tax preparation and filing services. However, comparing CPA vs TurboTax, the primary difference is that the former is a licensed accountant while the latter is a tax preparation software.
TurboTax is an inexpensive option to prepare simple tax returns with algorithmic triggers for potential deductions. On the other hand, CPAs, though high-priced, are adept at handling complex financial dealings through prompt human interaction. Precisely put, hiring either one depends upon your tax situation, budget, and preferences.
Comparative Table CPA vs TurboTax
| Particulars | CPA | TurboTax |
| Definition | State-board licensed accounting professional who has completed the required education, exam, & experience qualifications. | A software program designed for tax preparation & filing. |
| Regulatory Body/Owner | AICPA/NASBA | Intuit |
| Availability Mode | Offline & Online | Online |
| Pros | Experienced & knowledgeable professionals | Inexpensive |
| Can handle complicated tax situations | Self-controlled | |
| Increased reliability due to human interaction | Automatic access to tax code updates | |
| Personalized financial recommendations | Access anywhere & anytime | |
| Represent you before the IRS in case of any tax dispute | Auditing of tax returns | |
| Avail a variety of non-tax related services too | User-friendly | |
| Tax planning for future | 100% accurate calculations guarantee | |
| Time-saving | Maximum refund guarantee | |
| Cons | Expensive | Time-consuming |
| Financial details are shared | Extra charges for audit protection | |
| Chances for human error | Erroneous deductions due to excess reliance on individual response | |
| Constant in-person communication with the CPA | Can’t handle complicated tax situations | |
| Takes long to prepare and file returns | No tax planning guidance | |
| Who should hire/use? | Business owners | W-2 employee |
| Professionals with multiple income sources | Simple filers | |
| Individuals with a stock portfolio | Renters | |
| Inherited property owners | Homeowners | |
| People with foreign income | Small business owners | |
| People with complicated tax situations | Investors | |
| Self-employed individuals | ||
| How much would it cost? | $150-$500 | $0 – $120 (online) |
| $40-$110 (Download/CD) |