This happens every year with TurboTax. I made the switch to Cash App Taxes (formerly Credit Karma Tax) and it's completely free for federal AND state, including most common forms like Schedule 3.

This is such a classic TurboTax move - they lure you in with "free" filing then hit you with upgrade requirements after you've already spent time entering everything. Schedule 3 covers nonrefundable credits like the Child Tax Credit, Education Credits, and Retirement Savings Contributions Credit (Saver's Credit). If you contributed to an IRA or 401k and qualify for the Saver's Credit based on your income level, that would definitely trigger Schedule 3. The frustrating part is that this is a completely standard form that should be included in any legitimate "free" tax software. I'd recommend trying the actual IRS Free File program instead of these commercial "free" versions. The income limits are pretty generous and they include way more forms without trying to upsell you. You can find the real IRS Free File partners on the IRS website - just avoid going through the tax companies' own websites since they'll try to steer you to their paid versions.

What nobody has mentioned yet is that you should look up the "regular place of business" rule too. Even if your home doesn't qualify as your principal place of business, travel between multiple regular work locations is still deductible business mileage. So as a housecleaner with regular clients, you could potentially deduct miles between Client A and Client B (definitely business miles), and possibly still deduct miles from home to first client and last client to home depending on your specific situation. Just wanted to add this since there are multiple ways you might qualify for the deduction!

This is such a common confusion for mobile service providers! I'm a self-employed carpet cleaner and went through this exact same struggle last year. The good news is that you absolutely CAN deduct those miles from home to clients even without a dedicated home office. Since you're doing all your business administration (scheduling, invoicing, client communications) from your kitchen table, your home qualifies as your "administrative headquarters" or "tax home" under IRS rules. I was initially scared to take this deduction because I thought I needed an official home office, but after consulting with a CPA who specializes in service businesses, I learned that the home office deduction and business mileage deduction are completely separate things. Your home can be your principal place of business for mileage purposes without meeting the strict "exclusive use" requirement for the home office deduction. What really helped me was keeping detailed records showing that my home is truly my business hub - screenshots of my scheduling software, photos of my invoicing setup at the kitchen table, records of client calls made from home, etc. The IRS wants to see that your home isn't just where you sleep, but where you genuinely conduct your business operations. At 120-150 miles per week, you're looking at potentially $3,000+ in annual deductions at current rates. Definitely worth getting this right!

Anyone else confused about how this interacts with the routine maintenance safe harbor? I've been told by my accountant that these are separate elections but they seem to overlap a lot.

I've been dealing with this exact same situation with my rental duplex! After going through the confusion myself, here's what I learned: You're absolutely correct about Schedule E Line 19 - that's where the de minimis safe harbor expenses go. The key thing is making sure you have that written accounting policy in place and attach the election statement to your return each year. One thing that really helped me understand the repairs vs supplies distinction was thinking about it this way: if it maintains the property's current condition, it's typically a repair (deductible immediately). If it improves or adds value beyond the original condition, it's usually an improvement (needs to be capitalized). The de minimis safe harbor is great because it lets you expense those smaller improvement items that would normally need to be depreciated. For your 2021 renovation items, as long as individual invoices/items were under $2,500 each, you should be good to go with the de minimis election. Just make sure you have good documentation for everything in case the IRS asks questions later. The IRS guidelines are definitely written in that special "tax code language" that makes everything sound more complicated than it needs to be! You're not alone in finding them confusing.

I went through this exact same nightmare last year! The frustrating thing is that the IRS rejection system doesn't give you clear information about WHY it thinks you need a 1095-A, just that you're missing one. In my case, I discovered that when I switched from a marketplace plan to employer coverage back in 2019, there was a clerical error that left me flagged in the system as still having marketplace coverage. Even though I had been getting insurance through my job for years, the computer systems never properly communicated the change. What finally worked for me was getting a letter from my current insurance provider (in your case, Ambetter) explicitly stating that your coverage has never been through a marketplace plan and that they issued you a 1095-B, not a 1095-A. Then I had to fax this letter to both the IRS and healthcare.gov to get the error corrected. The whole process took about 3 weeks, but once it was fixed, my e-file went through immediately. I know it's incredibly frustrating, but don't give up on the electronic filing if you can avoid it - paper returns really do take forever to process and you'll be waiting months for your refund.

I experienced something very similar when I switched from marketplace coverage to direct insurance through Blue Cross. The problem was that healthcare.gov never properly recorded that I had terminated my marketplace plan, so their system kept expecting me to file the 1095-A. Here's what worked for me: Call healthcare.gov at 1-800-318-2596 and specifically ask to speak to someone about "terminating marketplace coverage records." Don't just ask about the 1095-A - explain that you need them to verify and update your enrollment status in their system. Many of the first-level customer service reps don't know how to handle this, so you might need to ask to escalate to a supervisor. When I finally got to the right person, they were able to see that my marketplace coverage had never been properly terminated in 2019, even though I hadn't been paying premiums or using the coverage. They processed the termination retroactively and told me to wait 3-5 business days before trying to e-file again. Sure enough, my return was accepted on the fourth day. The key is getting them to actually update their database, not just telling you that you don't need the form. Make sure they give you a confirmation number for the termination processing - that's proof they actually made changes in the system.

Quick question about state filing requirements - does anyone know if a single member LLC holding company needs to file a separate state return? My LLC is registered in Wyoming but I live in California and I'm getting conflicting advice.

Just wanted to add some clarity on the Schedule C question from the original post. Even though your single-member LLC is a disregarded entity, you should NOT file Schedule C for passive investment activities. Schedule C is specifically for active business income and expenses. The key distinction is that holding investments - even through an LLC - is generally considered investment activity, not business activity. Your dividends go on Schedule B, capital gains/losses on Schedule D, and any rental income on Schedule E, just as others have mentioned. However, be careful if you start actively trading frequently or providing services related to your investments - that could potentially cross into business activity territory and change your filing requirements. The IRS looks at factors like frequency of transactions, time spent, and intent to make a profit from trading activities rather than long-term appreciation. Keep good records showing your LLC's investment nature versus any business activities, as this distinction can be crucial if the IRS ever questions your classification.