Short answer: DIY tax software works well for a simple return — one W-2, the standard deduction, one state. Most New Jersey business owners outgrow it at a predictable moment. That moment is usually an S-Corp election, a NJ/NY commute, equity compensation, or New Jersey’s BAIT election.
Software files what you type into it. A CPA changes what there is to type. Which side you’re on is fact-specific, and results vary.
Every tax season, owners across Bergen County ask the same quiet question. “Am I leaving money on the table by doing this myself?” This guide gives a straight comparison — including the cases where the honest answer is “keep the software.”
Where DIY tax software genuinely wins
Let’s start with the concession most CPA articles skip. DIY software is a good product for the job it was built for.
- Simple W-2 returns. One or two W-2s, the standard deduction, maybe some bank interest. Software handles this fast and cheap.
- Single-state filers. If you live and work in New Jersey only, the state return is mostly automated.
- Confident filers with stable situations. Same job, same house, same forms every year. There is little for a professional to add.
If that describes you, software is often the right call. A CPA fee for that return buys convenience, not a different outcome.
The picture changes when a business enters the return. DIY software is an interview that fills in forms. It typically asks what happened.
It does not ask what should have happened. For business owners, that second question is where the money is.
7 signs it’s time to switch from TurboTax to a CPA
Owners in this situation often notice several of these at once:
- You formed an S-Corp or partnership. Form 1120-S or 1065, shareholder or partner K-1s, and basis tracking now sit on top of your personal return.
- You pay yourself through the business. S-Corp owners must take a defensible reasonable salary. Software accepts whatever number you enter.
- You work across state lines. A NJ/NY or NJ/PA commute means nonresident returns and a resident credit that has to be computed correctly.
- You received RSUs or other equity compensation. Vesting across a move or a multi-state job creates sourcing questions software does not ask.
- You keep guessing at quarterly estimated taxes. Surprise April balances and penalty notices are the usual symptom.
- You found an error in a past return, or got a notice. DIY errors tend to repeat until someone reviews the return line by line.
- Your business could benefit from elections software never mentions. New Jersey’s BAIT election is the classic example — it happens at the entity level, outside the personal-return interview.
One or two signs may not justify a switch. Three or more usually means the return has outgrown the interview. Did DIY filing stall out completely, leaving unfiled years? Start with our guide on what to do when you haven’t filed taxes in years.
What DIY software typically misses for NJ business owners
None of this is a knock on the software. These items sit outside what a self-service interview can do. They need judgment, entity-level action, or planning before year end.
| The issue | What DIY software typically does | Why it matters in NJ |
|---|---|---|
| NJ BAIT election | Files the forms you complete. The election itself is an entity-level choice on a state timeline, before the return. | BAIT is New Jersey’s workaround for the federal cap on state and local tax deductions. Miss the election window and the year’s benefit is gone. |
| S-Corp reasonable salary | Accepts whatever W-2 wage you enter, with no reasonableness check. | The IRS expects owner pay to be defensible. Too low invites payroll-tax exposure; too high wastes the S-Corp structure. |
| NJ/NY resident credit for taxes paid | Prepares each state return, but the credit depends on how income is allocated between them. | NJ residents working in NY file two returns. A wrong allocation means double tax or a credit the state questions. |
| Multi-state RSU sourcing | Reports the W-2 as issued. It does not test whether the states sourced the vesting correctly. | RSUs that vest across a move or a NJ/NY job split are often mis-sourced on the W-2 itself. |
| Estimated-tax planning | Prints vouchers based on last year’s numbers. | Business income moves during the year. Quarterly payments should move with it, not trail it. |
Each linked page above goes deeper on the specific issue. The pattern across all five rows is the same.
Software documents the year after it happens. Planning has to happen during the year — that is the part a dedicated S-Corp accountant is actually for.
What does switching from TurboTax to a CPA cost?
A CPA costs more than software. There is no way around that sentence, and pretending otherwise would be dishonest.
The real question is what the difference buys. For a business owner, it buys entity returns, tracked election deadlines, and correct multi-state credits. It also buys quarterly numbers that follow the current year.
We publish typical starting prices in our NJ CPA cost guide for 2026. Those figures are starting prices, not an offer. Every final fee is a fixed quote scoped during the engagement, and results vary by situation.
There is also a time cost on the software side. Business returns push owners into hours of interview screens, and the responsibility for every answer stays with you.
How the switch actually works
Switching is less dramatic than most owners expect. There is no penalty for arriving mid-year, and no need to wait for January.
- Bring last year’s self-prepared return — prior-return review is part of the free consultation.
- The review looks for missed deductions, unfiled credits, and entity-structure issues.
- When an error is found, owners in this situation often file an amended return to correct it.
- From there, the engagement is scoped in writing before any work begins.
ProAxis is a licensed CPA firm based in Hasbrouck Heights, NJ. We work 100% virtually with business owners across NJ, NY, and PA. Schedule a free consultation and bring that last self-prepared return with you.
FAQ: switching from TurboTax to a CPA
When should a business owner switch from TurboTax to a CPA?
Common switching points: forming an S-Corp or partnership, paying yourself through the business, or working across state lines. Equity compensation like RSUs and quarterly estimated taxes are also common triggers. One W-2, the standard deduction, and one state usually stay a good fit for DIY software. Results vary — a free consultation is the fastest way to see which side you’re on.
Will a CPA review my self-prepared prior returns?
Yes — and it’s recommended. Bring last year’s self-prepared return to the free consultation; prior-return review is part of it. The review looks for missed deductions and entity structure issues. It also checks for unfiled credits such as the NJ BAIT and FICA tip credit. When something was missed, filing an amended return (Form 1040-X) to correct it is common.
How much more does a CPA cost than tax software?
DIY software typically costs far less than CPA preparation, and for a simple return that gap is real money. For business owners the comparison changes. The fee buys entity returns, state elections, multi-state credits, and year-round planning that software does not attempt. Published starting prices are not an offer. Every final fee is a fixed quote scoped during the engagement, and results vary.
See the full breakdown in our NJ CPA cost guide.
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