Check if your CPA is trying to claim the Qualified Business Income deduction (QBI) from Section 199A. Its technically on Form 8995 or 8995-A but flows to Schedule 3. The QBI deduction can be up to 20% of qualified business income but you need to have business income to claim it. Some sketchy tax preparers try to classify W2 income as business income to claim this deduction, which is straight up wrong and will get you in trouble. If your income doubled this year to around $75k, that would explain the ~$15k deduction (20% of $75k).

This is a serious red flag situation that you need to resolve immediately before filing. A $14,999 deduction on Schedule 3, Line 8 for someone with only W2 and investment income is highly unusual and potentially fraudulent. Schedule 3, Line 8 is specifically for "Net premium tax credit" - this is related to health insurance marketplace premium tax credits. If you don't get health insurance through the marketplace or if you're not eligible for premium tax credits (which most high earners aren't), this deduction shouldn't exist at all. The fact that your CPA won't respond to emails about this is extremely concerning. Here's what I'd recommend: 1. Demand the complete return with ALL schedules and forms immediately 2. Don't sign or file anything until you understand every line 3. Consider reporting this to your state's board of accountancy if the CPA continues to be unresponsive 4. Get a second opinion from another tax professional This could be anything from a data entry error to intentional fraud. Either way, you're legally responsible for everything on that return once you sign it. The IRS will come after YOU, not your CPA, if there are problems. Given that your previous preparer only had a $140 foreign tax credit on line 20, this massive jump to $14,999 without any major life changes is a huge warning sign. Trust your instincts here.

Been self-employed for 10+ years and use per diem for meals exclusively. Quick tip: don't forget the first and last day of travel are calculated at 75% of the standard rate. A lot of people miss that and claim 100% for all days.

Great question, Carmen! I've been using the per diem method for my consulting business for the past three years, and it's been a game-changer for simplifying my tax prep. Here's what I've learned: Yes, you can absolutely use per diem rates instead of tracking individual meal receipts. The key is maintaining proper documentation of your travel - dates, locations, and business purposes. I keep a simple spreadsheet with columns for departure date, return date, destination city, client name, and business purpose. One thing to watch out for that I learned the hard way - make sure you're using the correct GSA rates for each specific location. Some cities have higher rates than others, and it can add up to significant differences over a year of travel. Also, as others mentioned, remember the 75% rule for first and last travel days. I use a combination of my calendar exports and client contracts to document the business purpose of each trip. During my first year using per diem, I was worried about having enough documentation, but my CPA assured me that as long as I could clearly show the business connection and had accurate dates/locations, I was in good shape. The time savings alone made it worth switching from receipt tracking - I estimate I save about 2-3 hours per month not having to organize and categorize meal receipts!

Quick question about filing requirements - even if my NRA LLC doesn't have US-source income, do I still need to file anything with the IRS? I've heard conflicting things about Form 5472 requirements.

One thing that helped me navigate this maze was understanding that the IRS has specific guidance in Publication 519 for nonresident aliens. It breaks down the source rules pretty clearly - for services, it's generally where you physically perform the work that determines the source, not where your client is located. However, there's an important exception many people miss: if you have a regular place of business in the US and the income is attributable to that office, it becomes US-source even if some work is performed abroad. Since you mentioned working from outside the US with a Wyoming LLC, this likely doesn't apply to you. Also worth noting that even though your LLC might not have US-source income, you'll still need to be careful about state filing requirements in Wyoming. While they don't have state income tax, there may still be annual report filings required to maintain your LLC's good standing.

Just FYI, for 2025 the Social Security wage cap is $168,600 (someone above mentioned this), but wanted to clarify that the Medicare portion of FICA (1.45%) applies to ALL of your income no matter how high. Then there's that additional 0.9% Medicare tax that kicks in after $200k if ur single. I earn about 230k and the Medicare tax is the one that surprises ppl when they get to higher income levels. U never stop paying it no matter how much u make!

Something that helped me when I was in a similar situation (around $250k) was understanding that FICA taxes are actually handled quite differently if you have multiple employers during the year. If you switch jobs mid-year like I did, each employer withholds Social Security tax separately up to the wage cap. So you might end up overpaying Social Security tax if your combined wages from both employers exceed $168,600. The good news is you can claim the excess as a credit on your tax return - you don't have to wait for the IRS to process a separate refund. This was a nice surprise when I filed my taxes after switching jobs halfway through 2024. I got back about $1,200 in excess Social Security tax that had been withheld. Just something to keep in mind if your career situation changes during the tax year!

Have you considered ProSeries Professional? I switched from TurboTax to ProSeries for my personal return because of similar issues with investment reporting. It's designed for professionals but isn't overly complicated once you get used to the interface. The K1 input screens are much more comprehensive and it handles the flow-through calculations automatically. It's not cheap (about $500 for the basic package) but worth it for complex returns.

Former tax professional here. Consider going with ATX Professional. It's less expensive than most pro options (around $350) but handles K1s beautifully. I used it for years in my practice and it's particularly good with investment partnerships. The learning curve isn't too steep if you're already tax-savvy enough to spot CPA errors.