Free tax software can be a great option for simple tax situations—but life doesn’t always stay simple. If your financial picture changed over the last year, you might benefit from the insight, accuracy, and strategy a licensed tax accountant provides.
Free tax software can be a great option for simple tax situations—but life doesn’t always stay simple. If your financial picture changed over the last year, you might benefit from the insight, accuracy, and strategy a licensed tax accountant provides.
Here are the key life changes that may warrant hiring a tax professional instead of relying on free tax tools.
Freelancers, gig workers, and small business owners face more complex filing requirements. From tracking expenses and deductions to handling quarterly estimated taxes and self-employment tax, it’s easy to miss key opportunities—or make costly errors.
Why an accountant helps: They’ll ensure you claim all your allowable deductions, stay compliant, and potentially save thousands with proper planning.
Whether it’s your first home or an investment property, real estate can introduce new tax issues like mortgage interest deductions, capital gains, and depreciation.
Why an accountant helps: They’ll calculate your capital gains accurately and help you navigate deductions for home offices, improvements, and property taxes.
Marriage or divorce can change your filing status, tax brackets, and eligibility for certain credits. Deciding whether to file jointly or separately can significantly impact your refund or tax bill.
Why an accountant helps: They’ll model different scenarios to help you choose the most tax-efficient filing strategy.
Welcoming a new child or taking care of a parent can open the door to credits like the Child Tax Credit, Earned Income Tax Credit (EITC), or Dependent Care Credit—but only if you know how to claim them properly.
Why an accountant helps: They’ll make sure you’re not leaving money on the table and can help plan ahead for future savings like 529 plans.
High-income events like RSUs, bonuses, or gains from crypto or stock trading can increase your tax liability and trigger AMT (Alternative Minimum Tax) or estimated tax requirements.
Why an accountant helps: They’ll develop strategies to minimize taxes through timing, deductions, or retirement contributions—and help you avoid underpayment penalties.
If you earned income in more than one state or moved during the year, you may need to file multiple state returns, each with different rules.
Why an accountant helps: They can navigate residency rules, tax reciprocity agreements, and avoid double-taxation.
Inheritance, trust distributions, or large gifts can come with complicated tax consequences depending on the asset type and location.
Why an accountant helps: They’ll help you understand your reporting obligations and strategize for future tax efficiency.
Final Thoughts: Simplicity is Free—But Complexity Deserves Expertise
Free tax filing software is great for W-2 employees with no major life changes. But when your finances grow more complex, having a seasoned tax professional by your side can ensure you file confidently, avoid mistakes, and save money long-term.
At Root Financial, we believe everyone deserves a best-in-class experience with a tax accountant—especially during life’s transitions. Our licensed professionals are here to simplify the process and maximize your refund.
Thinking it might be time to switch? Schedule a free consultation today and let’s talk through your tax picture.