Couple's New Tax Preparer Makes $1,080 Mistake - Should They Fire Him?

A couple discovered their new tax preparer (CPA - a certified public accountant who helps with taxes) made a $1,080 mistake on their tax return, turning what should be a refund into a bill.

The couple's trusted CPA retired without telling them. When they showed up for their appointment, they met his replacement who "didn't seem very alert." The new CPA struggled with forms they'd used before and needed to look at their old returns to understand their situation.

The costly confusion happened like this: • First, he said they'd get a $443 federal refund (money back from the government) • Minutes later, he changed his mind and said they owe $443 instead • At home, the couple found paperwork showing a $637 state refund - not the $135 he mentioned • They paid $355 for this error-filled service

The financial expert's advice was clear: Don't file incorrect taxes. Wrong numbers can cause major problems with the IRS (the U.S. tax agency). Since the CPA used tax software - the same programs regular people can use - the couple could double-check the work themselves for much less money.

Key recommendations included: • Use free tax software like FreeTaxUSA (costs only $15.99 for state taxes) • Try AARP's free tax help service with trained volunteers • Ask the CPA to explain the $502 difference in state refunds • Consider doing taxes yourself if your situation is simple

The expert noted that owing or getting back just a few hundred dollars actually shows good tax planning. Large refunds mean you've given the government an interest-free loan all year - money you could have used for savings or investments instead.

This is an AI-generated summary. Read the original article at: https://www.marketwatch.com/story/he-didnt-seem-very-alert-our-new-cpa-said-we-owe-a-443-tax-refund-but-were-actually-due-637-do-we-fire-him-82590675?mod=mw_rss_topstories