I take a Do It Yourself approach when it comes to many things, especially my finances. But there is an exception…Taxes! My mind starts to spin and I just want to curl up in the fetal position when I even glance at tax code. So I pay a CPA to do my taxes. And it’s paid off.
However, this weekend my CPA presented me with an unwanted scenario: best case I would owe just under $1,000 in state taxes, worst case I could owe $10,000! Um, ok. Well, this is why we have an Emergency Fund, right? We could pay the $1,000 and hope that California agrees with the facts we’re presenting. These were my only options, right?
No. I wasn’t satisfied possibly having a $10,000 tax bill looming. And I wanted a more definitive answer. So I got on the internet and was able to clarify the tax law that applied to my situation and I found that we wouldn’t owe taxes at all. In fact, after sharing this info with my tax professional, it turns out we’re getting a refund.
We hire professionals that are experts in their field. But they are human and can (and will) make mistakes. The simple fact is, no one cares about your well-being as much as you do.
So my question to you is, when do you question a professional? Whether it’s your CPA or your doctor, do you take their word as final?
Hi, I’m Cathy! I’m a former career-driven professional turned stay-at-home mom. Living on one salary has its challenges, but it is possible to live the good life while spending less. Cool to be Frugal is all about how we’re thriving, not just surviving, on a single income.
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It’s a tough question. One one hand these are professionals who are a lot more educated on the topic than you are. But on the other hand they are only human and mistakes happen. I guess the best way is to listen to their advice but not to follow them blindly. If you think you’re not getting the best service you can get a second opinion.
Great question. My answer: always but in a polite way. I’m a professional. Part of my job is appearing confident. I’m not always as confident as I appear. I have come to learn this is true of the doctor, of the car mechanic and of the guy that’s come to fix the water heater. They don’t always approach a problem in the least expensive way. They don’t always present alternatives and, as you found out, they don’t always know all the nuances in their field.
If the issue is really important don’t hesitate to do some research and seek a second opinion. That’s really important even if the issue is in your favor. Imagine if your guy had found that you were getting $1,000 and digging into it a bit you found you were due $5,000!
If your paying with your money so I believe you have an obligation to yourself to always question the professional. No only will you keep them on their toes but you will also learn in the process.
Wow good for you!!! In a situation such as that, I would not only do my own research, but I would contact any friend who I think may be able to help. Getting a second opinion is so key in situations such as that!
I guess you were forced to question here but in many cases you don’t. If it was $500 owed you probably would have paid with no question and no knowing you were every eligible for a refund! As for other cases Doctor’s are hard to question as you could end up becoming the crazy hypochondriac patient that they just prescribe placebo’s too, professionals can get a little upset when you question them!
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