CPA or DIY for a Complex 2025 Tax Year? How to Decide

Old-school CPA or app-plus-you? The 2025 tax reality

It’s Q4, you’re juggling open enrollment choices, year-end RSU vests, maybe a bonus, maybe a side gig that went from “beer money” to real money. And, yeah, 2025 has felt trickier. Not because the code exploded overnight, but because your life probably did. More households are mixing W-2 salaries with equity comp, rentals, and the occasional crypto trade. The tools are better, the edge cases are messier. That combo is exactly where people get stuck.

What’s actually happening right now: companies keep leaning into RSUs and mobile work, while individuals keep adding income streams. The NASPP’s 2023 survey shows roughly 90% of public companies grant RSUs (so if you’re at a public company, equity on your W-2 isn’t weird, it’s normal). On the tech side, the IRS says over 90% of individual returns are e-filed as of the 2024 filing season, which tells you software is the default for most filers. And the Federal Reserve’s 2024 SHED report notes 8% of adults held crypto as an investment in 2023, still enough to make a 1099-B or a missing basis show up at exactly the wrong time.

Here’s the straight comparison, no fluff:

• DIY software, 2025 edition: Great at wage income, standard deductions, child credits, clean 1099-INT/1099-DIV, and even basic 1099-NEC. It automates state reciprocity prompts, charitable bunching ideas, and tax-loss harvesting checklists (some apps pull your brokerage CSVs decently). It’s fast, it’s cheap, and it catches a lot of math you don’t want to do after 9pm.
• Where DIY still guesses wrong: Multi-state residency nuances (partial-year vs. statutory residency tests), RSU basis alignment when the broker’s 1099-B reports zero or incomplete basis, AMT interactions with ISOs (less common but painful), short-term rentals vs. passive aggregation, and crypto lot identification when you moved wallets. Also estimated tax safe harbors, software prompts exist, but they’re not psychic about your Q4 income timing.
• What a CPA actually changes: Elections that stick (Section 83(b) where relevant, Reg. 1.199A aggregations, safe harbor methods for rentals), basis tracking that matches reality not just the 1099-B, and audit-readiness, workpapers that reconcile your RSU comp to W-2 Boxes 1/12 and your state allocations to actual travel days. A good CPA won’t just “file”; they’ll sequence income and withholding before year-end. That sequencing is the ballgame.

If you’re wondering who really needs a pro vs. who can keep it lean, here’s the honest cut (and I say this as someone who’s done my own return and also happily paid for help):

• Lean with software: Single or married filing jointly, one or two W-2s, no equity events beyond simple RSU vests that match W-2 comp, one state, vanilla brokerage, maybe a side gig under ~$10k where estimated taxes are simple. You want speed and you’ll actually read the prompts. You’re fine.
• Get a CPA this year: Multi-state move or cross-border work; RSU/ISO events with sales in the same year (and ESPP disqualifying dispositions); material 1099-K/1099-NEC income; short-term rental with occasional personal use; crypto with transfers across exchanges; K-1s; or you got an IRS notice last year and you’re still not sure why. If two or more of these hit, the prep fee usually pays for itself in avoided penalties or better elections.

What you’ll get from this section of the guide: a clear map of how to triage your 2025 situation, what modern tools actually do well, and where human judgment still matters. I know it’s a lot (it is a lot). But the goal is simple, know when software is enough, and know when a pro can change the outcome, not just the paperwork.

Quick triage: is your return simple, messy, or truly complex?

Here’s the fast sorting hat I use when friends text me screenshots of their tax docs at 10:43pm. The goal is speed and accuracy, so you don’t overpay for a pro, or cheap out when a penalty is quietly waiting.

Simple (use software, keep your coffee hot):

• W‑2 income only, one state, no big job switch across state lines.
• Standard deduction. And that’s most people, after the 2017 changes, the share of filers taking the standard deduction has stayed high; in 2021-2022 it hovered around the ~88-90% range per IRS data.
• Basic bank interest and vanilla dividends. Rates eased a bit this year, but plenty of HYSA accounts still pay north of 4%, so you’ll see 1099‑INTs, still simple.
• No HSAs, no stock option exercises, no childcare/education phaseout puzzles.
• No crypto, no K‑1s, no state credits that require worksheets.

Why it’s simple: Minimal forms, no basis tracking, and software handles the math. The audit risk for individuals remained low, around 0.43% in IRS FY 2023 stats, so the big risk isn’t an audit, it’s you missing a move‑related withholding tweak or a 1099 that arrives in March. Read the prompts, you’re fine.

Messy (software + care, or a targeted CPA hour):

• Equity comp events (RSUs vested/sold; ESPP with a disqualifying sale). Basis adjustments matter here. I almost typed “wash sales” out of habit, different animal, but same vibe: mis‑reported basis can create fake income.
• One rental property (Schedule E), or a Schedule C side gig with real expenses. The IRS tallied roughly 27 million returns with Schedule C in 2021, and about ~11 million with rental income around that period, plenty of room for mismatch between 1099s and your books.
• Some crypto, especially if you moved coins across exchanges or used DeFi. Transfers that look like sales to a bot will wreck basis unless you import accurate lots.
• One state move in the year. You need to source wages and withholdings cleanly between states. It’s not hard, just tedious.

Why it’s messy: You can still DIY, but you need discipline: reconcile 1099‑Bs to your confirm, fix equity comp basis, and keep receipts. One paid hour with a CPA to sanity‑check basis and state sourcing is usually cheaper than a year of penalties or amending.

Rule of thumb I use: if your 1099‑B is more than 10 pages or you had an RSU sale + a state move, budget either extra time or a pro. Not because the code is impossible, because the data flow is messy.

Truly complex (get a pro, full stop):

• Multiple K‑1s from partnerships or funds, especially with late reclasses or state composite filings.
• S‑corp or partnership basis tracking, distributions, and debt allocations. Basis isn’t just a buzzword; it decides what’s taxable and what’s suspended.
• Multi‑state income sourcing (consulting in several states, remote work with nexus issues) or withholding in nonresident states.
• Foreign accounts or PFICs, FBAR/8938 filing. Penalties are real here.
• NOLs, AMT interactions, QSBS exclusion timing, or trust/estate items.

Why it’s complex: Sequencing and elections change outcomes, not just paperwork. The AMT snagged only about ~0.1% of individual filers in 2021 after the law changes, but if you’re in that cohort (ISO exercises, high state tax states), planning beats cleanup. QSBS, basis, and multi‑state sourcing can swing five‑figure tax differences when done right. And in Q4 2025, with capital markets still choppy and more folks getting K‑1s from private funds that extended capital calls, timing matters.

Real talk: if you read the Complex list and felt your eyes glaze over, get a CPA this year. If you read the Simple list and thought, “yep, that’s me,” save the fee. And if you’re in the Messy middle, you’ve got options: DIY with extra care, or pay for a review. I’ve seen both work. I’ve also seen a $350 consult prevent a $4,000 mistake. It happens fast when states and stock comp collide.

When paying a pro pays for itself

Here’s where a seasoned CPA tends to more than earn the fee, either by putting real dollars back in your pocket or steering you around landmines that DIY software won’t flag until it’s too late.

• Entity and election choices, The S‑corp wedge is real: split between W‑2 wages and K‑1 profit affects payroll tax, QBI, and state filings. Getting “reasonable comp” wrong is where audits often start. Also, late S elections aren’t fatal if you qualify for relief under the IRS’s late election procedures, but you want it papered right the first time. And safe‑harbor estimated tax rules matter if cash is tight: pay 100% of prior‑year tax (110% if your AGI exceeded $150,000) or 90% of current‑year tax to avoid underpayment penalties. That’s not trivia, that’s cash flow planning. Quick note: accounting method choices (cash vs accrual, §263A, de minimis safe harbor) can accelerate deductions into a high‑income year. I said earlier “timing matters”, this is what I meant.
• State tax sourcing and reciprocity, Multi‑state W‑2 and remote work are still messy this year. Reciprocity agreements can eliminate double tax, but only if you file the right nonresident return and claim the resident credit correctly. I’ve watched folks overpay thousands because a software default sourced RSU income to the work state the grant year, not the vesting year. That’s fixable, just not always cheap after the fact.
• Basis tracking, Partnerships and S‑corps live and die by basis. Get it wrong and losses get disallowed or, worse, gains get double‑taxed on sale. Stock comp too: ESPP and RSU lot tracking needs actual acquisition dates and disqualifying disposition rules. Your 1099‑B won’t tell the whole story; brokers often report zero basis for transfers. A CPA cleans that up before it becomes a letter from the IRS.
• Real estate and depreciation, Cost segregation can front‑load deductions, and bonus depreciation is still in a phase‑down. For 2025, the bonus rate is 40% under current law, which changes the math versus the 80% we had in 2023. Pair that with a passive loss strategy (real estate professional status or short‑term rental rules) and you can offset active income, if you meet the hour tests and have contemporaneous logs. If you don’t, expect the IRS to push back. With cap rates wobbling and financing costs still elevated in Q4 2025, that timing arbitrage is one of the few levers left.
• Audit posture and representation, The goal isn’t fear; it’s posture. Paper trails for home office, accountable plans for S‑corp reimbursements, appraisals for big charitable gifts (Form 8283), and mileage logs that are actually contemporaneous. If you do get a notice, having a CPA who can respond with workpapers and cite the code/reg, not just screenshots, shortens the pain. Quick reality check: after the TCJA, the AMT hit only about ~0.1% of individual filers in 2021 per IRS data, but the people who trip it tend to have ISO exercises or high SALT, aka folks who need documentation the most.

Circling back on safe harbors because it’s easy to miss: if last year (2024) was an unusually low income year and this year popped, say, big RSU vests after a rebound, you probably don’t want to rely on the 100%/110% rule alone. Paying in at the 90% current‑year mark avoids a penalty surprise in April. I’ve paid that price myself, once, never again.

Bottom line, CPAs don’t just fill forms. They choose elections, set methods, and document a file that stands up later. In a year when markets are still choppy, K‑1s show up late, and bonus depreciation stepped down, those choices can swing five figures. A $350 consult that prevents a $4,000 error isn’t a tall tale; that’s Tuesday in Q4.

If you DIY, do it like a pro

If you DIY, do it like a pro. If your return really is DIY‑able this year, great, just stack the deck so you don’t leave money on the table or trigger a CP2000 because an EIN digit was off. Quick checklist that I actually use when I file my own family’s return, coffee in hand, spreadsheet open, and yes, a couple of curse words when a broker 1099-B rolls in late.

• Match every 1099 and W‑2, by payer EIN and by amount. Don’t eyeball it. Create a line‑by‑line reconciliation: W‑2s, 1099‑NEC/MISC, 1099‑INT, 1099‑DIV, 1099‑B, 1099‑R, 1099‑K, 1099‑SA… the whole zoo. The IRS’s matching system keys off payer EINs + amounts. If your entry doesn’t match the information return, that’s how you get a CP2000 proposal. I know, it’s tedious. It’s also how you avoid a springtime love letter from Ogden.
• Equity comp: fix basis for RSUs/ESPP and flag disqualifying dispositions. For RSUs, your W‑2 already includes the income at vest; brokers often report a $0 basis on the 1099‑B. You need an adjustment on Form 8949 so you don’t pay tax twice. ESPP: mark qualified vs disqualifying. For qualified, ordinary income is the lesser of the discount at grant or the actual gain; the rest is capital gain. For disqualifying, more ordinary income hits, don’t miss it, but also don’t overstate it. I’ve seen this one swing refunds by four figures, no exaggeration.
• Brokerage hygiene: wash sales, TLH lots, 1099‑B adjustments, “January dividends.” Wash sales disallow the loss if you rebuy substantially identical within 30 days; the disallowed loss gets added to basis of the new shares. If you tax‑loss harvested earlier this year when volatility popped after rate jitters, make sure the replacement windows didn’t overlap. 1099‑B adjustments: brokers get corporate actions and equity comp wrong every year, document your changes. And those “January dividends” from mutual funds? If designated under the mutual fund January dividend rule, they’re treated as paid on December 31 of the prior year. So a dividend paid in Jan 2025 can be taxable in 2024, don’t double count it in 2025.
• Crypto: consolidate, patch basis gaps, and document staking/airdrops. Pull exports from every exchange and wallet you touched, yes, including that dusty DeFi wallet. Track transfers so your cost basis doesn’t go missing when coins hop chains. Staking and airdrops are ordinary income at fair market value when received; that FMV becomes basis for future gains/losses. If your software shows “unknown basis,” stop and fix it before filing. Unknown basis is audit bait.
• Multi‑state: count days and apply sourcing rules, city taxes too. Remote work is still a thing in 2025, and states haven’t gotten friendlier. New York’s convenience rule can pull wages into NY even if you worked at home in, say, Connecticut. City taxes: Philadelphia wage tax and St. Louis earnings tax can apply based on where work is performed; NYC has a resident tax (nonresidents don’t pay NYC personal income tax, a common mistake). Keep a simple day log; it saves real money.
• Quarterlies: true‑up Q4 and use safe harbors correctly. For 2025, the safe harbor still means: pay in 90% of this year’s tax or 100% of last year’s (110% if your 2024 AGI was over $150k). The Q4 estimate is due January 15, 2026, don’t wait for your W‑2 to show up to fix underpayments. And an extension only extends filing (to October 15, 2026), not payment. I said this earlier but it bears repeating.

Small data point to keep perspective: after the TCJA, the AMT hit only about ~0.1% of individual filers in 2021 per IRS data. Most DIY headaches aren’t AMT, they’re mismatches and basis errors. Which is fixable with process.

Two quick process tips I forgot to mention up top: keep a master “info return” tab that totals income by type (wages, interest, divs, short/long gains, other) and tie that to your software’s summary screen; and attach broker adjustment statements/PDFs in the e‑file where possible. Markets have been up‑and‑down this year, AI winners, rate‑sensitive names laggy, so there’s plenty of realized gains and harvested losses floating around. Clean inputs beat clever strategies, every time.

And circling back, if something feels off (like a 1099‑B with basis zero for RSUs), it probably is. Pause, fix it, or grab a 30‑minute CPA slot. I’m bullish on DIY when the file is clean. I’m not bullish on guessing.

2025 wrinkles that tip the scales

What’s unique right now that can swing the CPA vs DIY call? A few things are different, and they actually matter for Q4 decisions, not hypotheticals. And yeah, some of this is annoyingly gray. That’s ok.

1) TCJA sunsets are staring us in the face (after 2025). The individual provisions from the 2017 tax law expire after this year, including the bigger standard deduction, wider brackets, the 20% QBI deduction for many pass‑through owners, and the $10k SALT cap. Translation: bracket management in 2025 isn’t academic, it’s real. If you expect higher rates in 2026, pulling income into 2025 (Roth conversions, bonuses where you control timing, business income acceleration) can make sense. If your SALT deductions blow past $10k but you’ve been capped, bunching deductions into 2026 could matter, assuming the cap actually sunsets. Feels messy? It is. But this is the year to model both years, not just this year’s refund screen.

2) EV and clean‑energy credits, now with cash at the dealership. The Inflation Reduction Act (2022) expanded credits and, starting in 2024, enabled point‑of‑sale transfers, meaning you can get up to $7,500 (new clean vehicle, IRC §30D) or up to $4,000 (used clean vehicle, §25E) applied as an instant price reduction if eligibility checks out. The program has been active since January 2024 through registered dealers. The catch: documentation. Keep the VIN eligibility printout, dealer’s time‑of‑sale report, and your delivery contract. No docs, no credit. And those battery/assembly rules still bite, cars move on and off the list during the year. If you DIY, triple‑check the Treasury’s eligibility tool before year‑end.

3) Mortgage and savings math is different under higher‑for‑longer. With 30‑year mortgage rates hovering in the 6-7% zip code for much of 2025 and cash/T‑bill yields sitting near 5% at points earlier this year, the mix of deductible mortgage interest and taxable interest/dividends is shifting. Itemizers with fresh mortgages are seeing meaningful interest deductions again; savers with chunky cash ladders are seeing bigger 1099‑INTs. That can flip you from a standard deduction profile to an itemizer or vice‑versa. Yes, I know that’s obvious. But the simple point, your 2023 playbook may give you the wrong answer in 2025 if you don’t re‑run the math.

4) Side‑hustle reporting: tighter 1099 matching. The IRS confirmed the $600 Form 1099‑K threshold for third‑party networks takes effect for the 2025 tax year after a phase‑in (the IRS announced in Nov 2024 that 2024 used a $5,000 threshold, moving to $600 for 2025). Expect more forms, more matching, and fewer “eh, they won’t notice” gaps. Clean books, separate bank account, mileage/app logs, and quarterly summaries, dramatically cut notice risk. One more stat for perspective: after TCJA, the individual AMT hit only about ~0.1% of filers in 2021 per IRS data. Most audit letters aren’t scary tax law; they’re mismatches you can prevent with tidy records.

5) Year‑end moves still on the table (and they still work):

• Donor‑advised funds: front‑load a few years of giving in December to maximize the 2025 deduction while the current rules still apply. Pair with appreciated stock to wipe embedded gains.
• Roth conversions: partial conversions can smooth brackets if you expect higher rates next year. Don’t forget state taxes and IRMAA cliffs, those Medicare brackets sneak up on people.
• Capital‑loss harvesting: 2025’s market has been two‑speed, AI leaders strong, rate‑sensitives and some small caps choppy. If you’ve got losers against concentrated winners, harvest within the wash‑sale rules and reset basis. Over‑explaining the obvious here: a $3,000 ordinary offset is small, but the big win is netting gains at 0/15/20% instead of 15/20% on the margin. That’s the point.

So, CPA or DIY? If you’re juggling EV credit paperwork, a new 7% mortgage, chunky interest income, and a side‑hustle that just crossed the $600 1099‑K line, you probably want at least a one‑hour CPA check this quarter. If your file is clean and stable, DIY with a year‑end checklist is still totally fine. I’m pro‑DIY when the inputs are clean. I’m not pro‑guessing, especially not this year.

What it costs, money, time, and sleep

Here’s the straight version. A CPA saves you from traps, but they’re not cheap. DIY software saves cash, but shifts the work (and the stress) to you. With 2025’s mix, higher-for-longer rates juicing 1099-INTs, messy 1099-K thresholds actually enforced again, and more folks sitting on K‑1s from private credit funds, the calculus isn’t theoretical. It’s your weekends.

Money: For simple returns, DIY software can be $0-$200, then tack on $40-$70 per state and upsells for crypto imports, 1099-K workflows, or a “live expert” chat. A real CPA? If you’ve got a W‑2 plus basic investments, I still see $400-$800 in many markets. Layer in a Schedule C, a rental, or a couple of K‑1s and multi‑state? You’re looking at four figures. And not barely, $1,500-$4,000 is normal for a complex file, and $5k+ isn’t weird if there’s clean-up work or late docs. For context, the National Society of Accountants’ fee data (2021 survey) showed averages around $514 for a 1040 with Schedule A and roughly $778 with a Schedule C. That was before inflation in professional services and the post‑pandemic complexity creep; 2025 quotes are higher in most cities. Hourly, mid‑tier firms are commonly $250-$400/hr, bigger shops $450-$600/hr. I know, not fun to read.

Time: DIY isn’t free once you count your hours. If your time is worth, say, $100/hour, and you spend 12-20 hours wrangling basis schedules, state apportionment, crypto 8949s, and tying out your 1099 composite to the brokerage downloads… your “$120 software” just cost $1,200-$2,000 in opportunity cost. And that’s before a notice shows up. I’m oversimplifying a bit, some people genuinely like the control (I get it), but if you’re spending Saturdays proving to yourself that a partnership’s capital account roll-forward ties, the savings aren’t really savings.

Penalty math: This is where guessing hurts. The IRS failure‑to‑file penalty is 5% of unpaid tax per month (capped at 25%). The failure‑to‑pay penalty is 0.5% per month (also capped at 25%). There’s also a 20% accuracy‑related penalty if you understate tax due to negligence or substantial understatement. And estimated tax underpayment penalties accrue interest at the federal short‑term rate + 3 percentage points, set quarterly. Example (purely illustrative): miss a $10,000 balance, file on time but pay 6 months late. At a not-crazy interest rate scenario, you could see ~$300 in failure‑to‑pay (0.5% x 6 months x $10,000) plus roughly $300-$400 of interest depending on the quarterly rate at that time. Call it ~$600-$700 to the IRS for a timing mistake. That’s before the hours you’ll burn responding to a notice. Documentation, basis schedules, support for 1099‑B adjustments, mileage logs, doesn’t just lower tax risk; it slashes notice ping‑pong.

Sleep: Notices and “please explain” letters chew time and headspace. And with 2025 interest income still elevated for a lot of households (T‑bills and HYSAs have kept many people near 4-5% earlier this year), mismatches between broker 1099s and your import files are common. A CPA’s job is partly to keep you out of that pinball machine.

Data security: Please stop emailing PDFs. Encrypted portals with MFA are table stakes now. Good firms give you read‑only brokerage access or secure upload links so they can pull tax lots without getting trading authority. If you DIY, use broker API downloads or read‑only exports, not screenshots. And lock your stuff with 2FA. I’ve seen one too many “oops, wrong attachment” moments in my inbox over the years, nobody needs that.

My take: If your 2025 is clean, W‑2, standard deduction, a vanilla brokerage, DIY is fine. If you’ve got K‑1s, multi‑state, RSUs with disqualifying dispositions, or chunky interest/gains from this year’s market two‑speed tape, pay for at least a targeted CPA review. Not a scare tactic, just the math on fees, time, and the very real cost of errors. And yes, I didn’t even touch AMT or NIIT interaction here. That’s another can of worms.

Bottom line: match the tool to the job

Here’s the decision path I actually use with clients and, frankly, on my own return when life gets messy. Keep it simple where you can, bring in a pro when the penalties for getting it wrong are real. Intellectual humility beats bravado with the tax code every time.

• Hire a CPA this year if you have any of these: K‑1s (partnerships/PE/real estate funds often deliver them in March…or April), multi‑state income or moves, entity choices (S‑corp vs. LLC questions), foreign accounts or assets, or stock comp with oddities (disqualifying ISO dispositions, 83(b)s you forgot about). Quick rule of thumb: if your return needs Form 1116, 2555, 8621, 3520/3520‑A, or multiple state part‑year filings, stop DIY. That’s not fear‑mongering, it’s me trying to save you from notices.
• DIY is fine if you’re W‑2 + a plain brokerage account. Use a checklist, reconcile 1099‑DIV/INT/B, and keep basis records tight. You can absolutely do this with consumer software. I still print the realized gain/loss report and mark wash sales by hand, old habits, but it catches silly mismatches.

Before year‑end (now, in Q4):

• Harvest losses in the laggards. The market’s been two‑speed this year, some mega‑caps flying, plenty of small/mid names lagging, so there are likely harvestable losses even if your headline year is positive. Remember the wash sale rule is 30 days; I just said “superficial loss” in my head, which is the Canadian term; point is: don’t buy back substantially identical securities inside 30 days.
• Confirm estimated taxes. The federal safe harbor is still the same: pay 100% of last year’s tax (110% if your AGI was over $150k) or 90% of this year’s tax to avoid underpayment penalties (per IRS Pub. 505, current rules apply for 2025). If you had big capital gains or RSU vests earlier this year, top up Q4 estimates rather than gift yourself a penalty at 3 a.m. in April.
• Time deductions/recognition. Bunch charitable gifts with a donor‑advised fund, prepay January state estimates in December if it makes sense for you, and if you’re teetering near the NIIT threshold, space out gains. Yes, there are phaseouts, and yes, it’s annoying, but moving one trade by a week can matter.

Foreign accounts? If your aggregate foreign financial accounts exceeded $10,000 at any point, you likely owe an FBAR (FinCEN 114). FATCA Form 8938 thresholds for U.S. residents start at $50,000 single/$100,000 MFJ at year‑end. Misses here are expensive, and CPAs earn their keep by keeping those boxes checked.

January plan (avoid April surprises):

1. Set up a folder system, digital or paper, and drop docs as they arrive, W‑2s, 1099‑INT/DIV/B, 1099‑NEC, 1099‑K if applicable, 1098 mortgage, K‑1 placeholders (because those show late).
2. When 1099s post, verify basis and fixed income accruals. Brokerage 1099s get corrected, often in late Feb or early March, so wait for the “consolidated” final before filing if you’ve got complex holdings.
3. Reconcile last year’s (2024) refunds or balances with your 2025 estimated payments so your software or CPA isn’t guessing. Small thing, big time saver.

My philosophy: use professionals when the downside of being wrong is asymmetric. I once tried to “quickly” allocate multi‑state partnership income on a Sunday night; three notices later, I hired a CPA. Cheaper than my pride.

Quick call to action before Dec 31: book a 30‑minute check‑in, CPA or not. Bring your YTD gains/losses, withholding vs. safe harbor snapshot, and a list of life changes (moves, marriage, new entity). You’ll make two or three decisions that pay for the session, or you’ll confirm that doing nothing is the right move, which honestly is just as valuable.

And yes, this stuff is complex, it’s supposed to be, Congress didn’t build a postcard return, but with a clear lane: CPA for K‑1s/multi‑state/foreign/entity issues; DIY for W‑2 + vanilla brokerage; everyone schedules a year‑end tune‑up and a January organizing sprint. That’s the job, match the tool.

Frequently Asked Questions

Q: Should I worry about estimated tax penalties if my income spiked from RSUs and a side gig this year?

A: Short version: hit a safe harbor. Pay in 100% of last year’s total tax (110% if your 2024 AGI was over $150k) or 90% of 2025’s tax. Year-end withholding counts as if paid evenly, so tweak payroll or RSU sell-to-cover now. If income was lumpy, use Form 2210 annualized method.

Q: Is it better to stick with DIY software or hire a CPA if I worked in two states and had RSUs vest in 2025?

A: If it’s simple W-2 in two states with clear dates and no residency gray area, good software can handle it: it will prompt for part‑year vs. nonresident returns and calculate credits for taxes paid to the other state. Where people get tripped up is residency tests (statutory residency rules are sneaky), RSU basis alignment when the broker shows zero or incomplete basis, and timing, vesting in one state, sale in another. If you lived in one state and worked in another with reciprocity, DIY is usually fine. If you moved midyear, spent 183+ days in a high‑tax state, or have RSUs, ISOs, and a bonus all crisscrossing states, a CPA is worth it. Expect $600-$2,000+ for multi‑state with equity. Tip: pull your employer’s state wage detail (W‑2 Box 16 by state) and the RSU vest reports before you start, saves hours either way.

Q: What’s the difference between RSU income on my W‑2 and the 1099‑B from my broker? They don’t match.

A: Your W‑2 includes RSU compensation at vest (fair market value on vest date). That’s wage income and already taxed through payroll. The 1099‑B shows the sale of the shares later, proceeds and cost basis. Here’s the rub: many brokers report zero or partial basis, so software shows a big capital gain unless you fix it. Your cost basis for capital gains is the FMV taxed at vest (per lot), plus any commissions. If you sold same‑day, the gain/loss should be tiny. Adjust the basis on the 1099‑B import or enter manually using the vest confirmations. Keep the broker statements and the employer’s equity detail. If the 1099‑B shows basis missing, mark it as an adjustment and include a brief description so you’re not taxed twice on the same income.

Q: How do I decide when crypto, rentals, and a side business tip me from DIY into CPA territory?

A: Use this simple filter. If you answer “yes” to two or more, call a CPA; otherwise, DIY software in 2025 is usually fine. 1) Multi‑state or moving parts: you changed states, worked remotely in multiple states, or had statutory residency risk. Example: you lived in NJ 7 months but kept an NYC pied‑à‑terre, now we’re in credit-for-taxes and residency audit land. 2) Equity complexity: RSUs plus ISOs or ESPP disqualifying dispositions. Example: exercised ISOs earlier this year and held, AMT can sneak up; software can do it, but a pro checks AMT credit carryforwards. 3) Crypto with missing basis, multiple wallets, or DeFi. The Fed’s 2024 SHED shows 8% held crypto in 2023; if you bridged chains, staked, or NFT’d, reconstruction is half the battle. Example: you moved wallets and lost lot IDs, CPA plus a crypto tax tool is worth it. 4) Short‑term rental vs. passive. Example: average stays under 7 days and you materially participate, losses might be nonpassive; get this wrong and you either lose deductions or create audit bait. 5) Schedule C that grew up: real revenue, contractors, and assets. Example: you bought equipment and took bonus depreciation, mind recapture on sale and the QBID phaseouts. 6) Underpayment risk late in the year: you can “catch up” via payroll/RSU withholding in Q4. If you’re not sure how much, a 60‑minute CPA session to peg safe harbor (100%/110% of 2024 or 90% of 2025) can save penalties. My rule of thumb: <200 transactions, single state, clean RSUs, no AMT, no DeFi, DIY. Anything messier, pay a pro once, get a clean template, then you can DIY next year with confidence.

@article{cpa-or-diy-for-a-complex-2025-tax-year-how-to-decide,
    title   = {CPA or DIY for a Complex 2025 Tax Year? How to Decide},
    author  = {Beeri Sparks},
    year    = {2025},
    journal = {Bankpointe},
    url     = {https://bankpointe.com/articles/cpa-or-diy-complex-taxes/}
}