Don't forget to check with your state tax agency too! Some states have their own free file programs separate from the federal ones. I'm in California and they have CalFile which is completely free for state filing regardless of income, and it accepts unemployment income. Saved me $39 on state filing fees and was actually easier to use than the paid services.

Just wanted to add another option that worked great for me last year - TaxSlayer through the IRS Free File program. I had a W-2, 1099-G from unemployment, and some student loan interest deduction, and it handled everything for free (federal filing). The key thing is making sure you access it through the official IRS Free File portal like others mentioned. When I went directly to TaxSlayer's website, they wanted to charge me, but through the IRS portal it was completely free for my income level. One thing I liked about TaxSlayer is that it walks you through each form step-by-step and explains what each line means in plain English. Super helpful when you're dealing with unemployment tax situations for the first time. Definitely worth checking out as another free alternative!

Slightly different perspective here - have you considered just separating out the sales tax on your invoices/receipts instead of absorbing it? There are a few benefits: 1. Customers actually expect to see sales tax added separately 2. It's WAY easier for accounting/bookkeeping 3. You don't cut into your profit margins 4. Avoids all this tax deduction confusion When I switched from inclusive to exclusive pricing, my sales didn't drop at all - turns out customers are used to seeing the tax added at checkout. Just something to consider as a simpler solution to your problem.

I've been dealing with this exact same issue in my small business! After reading through all these responses, I'm convinced that backing out the sales tax from gross receipts is definitely the right approach rather than trying to deduct it as an expense. One thing I'd add is to make sure you're also considering multi-state sales tax rules if you sell online. I got caught off guard when I started selling to customers in other states and didn't realize I had economic nexus obligations in some of them. Each state has different thresholds for when you need to start collecting and remitting sales tax. Also, if you're doing craft shows or farmer's markets across state lines, you might need temporary sales tax permits in those states. I learned this the hard way when a show organizer informed me I needed to collect local sales tax for that jurisdiction. The good news is once you get your system set up correctly to separate the tax component from your actual sales revenue, quarterly filings become much more straightforward. I use a simple spreadsheet that automatically calculates the breakdown, and it's saved me so much headache compared to when I was trying to figure out deductions.

Your instinct to be cautious is absolutely right - this would be tax fraud and the consequences aren't worth the risk. I work in tax compliance and can confirm that the IRS automated matching systems will catch this discrepancy almost immediately when the same SSN appears on multiple returns with conflicting dependency status. The key issue here is the support test calculation. Even if you're working part-time and covering some personal expenses, your parents providing housing (at fair rental value) plus tuition assistance likely means they're covering well over 50% of your total annual support. Free housing alone could easily be worth $8,000-12,000+ per year depending on your area. For the financial aid issue, definitely explore dependency override appeals with your school's financial aid office. These are designed exactly for situations where your FAFSA dependency status doesn't reflect your actual ability to pay. You'll need to document your circumstances, but many students successfully get additional aid this way without risking tax penalties. Also remember you should still file your own tax return as a dependent (checking the box that someone can claim you) to get back any withheld taxes and potentially claim education credits. You're not giving up money by filing correctly - you're just avoiding serious legal trouble down the road.

I understand your frustration with the financial aid situation, but your mom is absolutely correct - claiming yourself as independent while she also claims you as a dependent would be tax fraud. The IRS has automated systems that will immediately flag when the same Social Security number appears on multiple returns with conflicting dependency status. The real issue is determining whether your mom should legitimately be claiming you as a dependent. For a 22-year-old college student, you must meet the "qualifying child" test: be a full-time student for at least 5 months, live with your parents for more than half the year, and have your parents provide more than 50% of your total support. That support calculation includes the fair rental value of living at home (often $8,000-15,000+ annually), plus any tuition assistance, food, utilities, insurance, and other expenses your parents cover. Even if you're working part-time and paying for personal expenses, your parents are likely providing well over 50% of your total support. Instead of risking tax penalties, focus on addressing the financial aid issue properly. Contact your school's financial aid office about a dependency override appeal or special circumstances review. Many schools can adjust aid packages when your FAFSA doesn't accurately reflect your ability to pay. This is the legitimate way to get additional financial aid without committing tax fraud. You should still file your own tax return (checking the box that says someone can claim you as a dependent) to get back any withheld taxes and claim eligible education credits.

One thing I'd be concerned about is potential issues with other family members. When my grandfather passed, we found cash hidden in his home and it caused a HUGE family fight even though it wasn't nearly as much as you're talking about. If there's no documentation stating it was meant specifically for you, other family members might feel entitled to a portion, especially when it's such a large amount. Have you discussed this with your parents or siblings? It might be worth having those conversations before making any deposits, just to keep family relationships intact.

This is a complex situation that requires careful handling. First, I'd strongly recommend consulting with both a tax professional and an estate attorney before making any deposits. Here's why: The timing is crucial - since your grandfather passed 8 years ago, there may be statute of limitations issues that could work in your favor, but you need professional guidance to understand the implications. For the bank deposit, you're absolutely right that they'll file a CTR for amounts over $10k, but this isn't inherently problematic if you can document the source. I'd suggest preparing a written statement explaining: - When and where you found the money - Your grandfather's background (the Colombian business sale) - Any witnesses to his verbal statements about leaving you his "special savings" Consider having a family meeting before proceeding. Even if your grandfather verbally indicated this was for you, other family members may have legitimate concerns about such a large undisclosed asset from the estate. The IRS will likely have questions about why this money is surfacing now, but being proactive and transparent will help. A tax professional can help you prepare the proper documentation and determine if any estate tax issues need to be addressed. Don't rush this process - taking time to handle it properly will save you potential headaches later.

I ran into this question in my job as a traveling nurse. My agency reimburses per diem, but they specifically mention this "50 mile rule" in their policy. From what I understand after talking to our payroll department, the 50 miles is actually THEIR policy, not an IRS requirement. They use it as a simplified way to determine who qualifies for tax-free per diem. A company can set their own policies for reimbursement that are more restrictive than the IRS minimum requirements. So if you're getting per diem from your employer, check THEIR policy documents rather than just IRS publications.

As a tax preparer, I see this confusion about the 50-mile rule constantly during tax season. What many people don't realize is that the IRS actually uses a "sleep or rest" test rather than a specific mileage requirement. Publication 463 explains that you must be away from your tax home long enough to require substantial sleep or rest to meet the demands of your work. The 50-mile distance is more of a practical guideline that courts and the IRS use to help determine if overnight travel was truly necessary for business purposes. If you're traveling 30 miles but genuinely need to stay overnight due to early morning meetings or safety concerns, that could still qualify. Conversely, traveling 60 miles for a day trip wouldn't qualify for per diem. For audit protection, I always tell my clients to maintain a detailed travel log with business purpose, dates, locations, and why overnight stay was necessary. Also keep any employer communications about travel requirements - these carry significant weight with auditors.